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Susan Crawford Identifies Problems/Solutions with Broadband in America

Susan Crawford published an excellent essay in the New York Times presenting her Looming Broadband Monopoly argument as a discussion of the coming digital divide between those with access to next-generation networks and those without.

These numbers are likely to grow even starker as the 30 percent of Americans without any kind of Internet access come online. When they do, particularly if the next several years deliver subpar growth in personal income, they will probably go for the only option that is at all within their reach: wireless smartphones. A wired high-speed Internet plan might cost $100 a month; a smartphone plan might cost half that, often with a free or heavily discounted phone thrown in.

The problem is that smartphone access is not a substitute for wired. The vast majority of jobs require online applications, but it is hard to type up a résumé on a hand-held device; it is hard to get a college degree from a remote location using wireless. Few people would start a business using only a wireless connection.

She identifies the problem as a lack of competition in the market while highlighting the role of lobbying from the wealthy cable companies to keep it that way:

The bigger problem is the lack of competition in cable markets. Though there are several large cable companies nationwide, each dominates its own fragmented kingdom of local markets: Comcast is the only game in Philadelphia, while Time Warner dominates Cleveland. That is partly because it is so expensive to lay down the physical cables, and companies, having paid for those networks, guard them jealously, clustering their operations and spending tens of millions of dollars to lobby against laws that might oblige them to share their infrastructure.

In this essay, her preferred solution is better federal regulation that would require companies that own networks to share parts of their infrastructure with competitors (to significantly reduce the problems of natural monopoly). Unfortunately, she did not explicitly discuss the solution of the communities building their own networks - a topic she has discussed at great length elsewhere in very positive terms. Her essay ties in nicely with the paper we highlighted looking at the growing costs of network exclusion.

While we recognize the benefits of open access policies that require infrastructure owners to share their network rather than monopolizing it and profiting from the scarcity of these essential connections, we believe the best solution is to allow/encourage communities to build publicly owned networks -- particularly those that are open to independent service providers.

Even if the Obama Administration had the courage to take on powerful companies like AT&T and Comcast, the next administration could easily reverse any policies meant to encourage competition. Better to build community-owned infrastructure that is not as susceptible to the massive lobbying dollars of big cable and telephone companies.

Update: For those who saw the a subsequent response to Crawford's column in the letters-to-the-editor from Verizon's Chairman, he flat out lied in several of his rebuttal points.

Senate to Vote on Giving Internet Governance to Comcast, AT&T

Update: The Senate voted against turning the Internet over to Comcast, AT&T, and other major carriers. How did your Senators vote?

The US Senate began debating network neutrality yesterday - the historic governing principle of the Internet that ISPs should not be allowed to tell their users where they may or may not go and should not prioritize some connections over others merely because it generates more revenue for the ISP.

As Al Franken has said several times, this is the 1st amendment for the Internet - protecting everyone's speech. It prevents a few massive companies (or even local governments where they offer access to the Internet) from exerting too much influence over what subscribers are able to do on the Internet.

Unfortunately, many Senators are campaigning against this principle, in part because they have been misinformed as to what it means and in part because they are getting a ton of campaign cash from corporations that recognize how much more profitable they would be if they could charge users extra to go to YouTube.

There will be a vote today on a resolution of disapproval for the mild network neutrality rules proposed by the FCC last December (which the FCC Chairman chose to water down in part because he thought it would be less controversial -- FAIL).

We would like to recognize some of those who have stood up to protect the open Internet, starting with Free Press.

The American Sustainable Business Council authored an op-ed:

The truth is that if we want to make sure small businesses can grow with the assistance of broadband, the Internet must remain open. We must, as the FCC says, “ensure the Internet remains an open platform—one characterized by free markets and free speech—that enables consumer choice, end-user control, competition through low barriers to entry and freedom to innovate without permission.”

Senator Kerry made an impassioned plea for not turning the Internet over to Comcast and AT&T:

So they're trying to say to the American people that they want to liberate the Internet when, in fact, what they want to do is imprison the Internet within the hands of the most powerful communications entities today to act as the gatekeepers who will control the ability of the Internet to do the very kind of development that brought us here.

...

But the reason we have a Google today, the reason we've had this incredible development of Internet retail business, of all of these web sites, of Facebook and so many more is because of the open architecture of access to that Internet. Which, I would remind everybody in America, was created by government money in government research.

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Everything that goes over the Internet today goes either through your telephone at home or television or whatever, through cable, out of your house or the airwaves. But if we're not having an open architecture on the Internet, then the people who control those access points can start discriminating about who gets access at what speed. And if you control who gets access at what speed and begin to charge more for that, you begin to have a profound impact on the ability of any business to develop and a profound impact on the access that consumers have come to anticipate with respect to the Internet.

Minnesota's own Senator Al Franken gave a great speech in addition to publishing an article about the importance of net neutrality:

This isn't a radical concept - it's what each and every one of us experiences every time we use the Internet. Right now, an e-mail from a friend arrives in your inbox just as quickly and reliably as an advertisement from Amazon.com. Consumers can go online and make a reservation at a small fishing lodge in Ely, Minnesota just as quickly as they can at the Hilton.

But many Republicans want to change that so that the large corporations they represent can increase their profit margins at the expense of small businesses and consumers.

To illustrate why net neutrality is so critical to innovation on the web, I like to tell the story of a small online startup that launched in 2005 above a pizzeria in San Francisco. It had a product that now seems simple: it allowed people to upload videos so others could stream them. It was called YouTube - you may have heard of it.

At the time, Google had a similar product - Google Video - but it wasn't as easy to use, so consumers took their business to YouTube. The site took off and, less than two years after it launched, YouTube was purchased by Google for $1.6 billion. Not a bad payday.

But it wouldn't have been possible without net neutrality. If Google had been able to pay Comcast and other large Internet service providers to prioritize its data - and make YouTube's videos load more slowly - YouTube wouldn't have stood a chance. Google's inferior product would have won.

And some have made the connection between Network Neutrality and Occupy Wall Street:

At Occupy Chicago, communications volunteers count more than 33,000 Facebook "likes," 20,000 Twitter followers, and several thousand website hits every day.

So, some are asking, what would happen if the corporate entities that are the targets of protests were able to limit Internet traffic? That was tried at one point by the Egyptian government during the Arab Spring protests, and Betty Yu with the Center for Media Justice says it's a legitimate concern.

The NY Times editorialized on it:

The resolution would render void the modest rules adopted by the F.C.C. in December 2010. Stripped of authority, the commission would have a very difficult time protecting the Internet from those who clamp down on content for ideological reasons or profit. Repealing the rules would free service providers like phone and cable companies to block or slow down their competitors’ content — be it movies, songs or messages — when it is flowing through their broadband pipes.

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The Republican approach goes back to 2002, when the F.C.C., under the Bush administration, made the bizarre decision that broadband Internet communications were not, in fact, telecommunication services under the law. Last year, the F.C.C. had the opportunity to redefine broadband as a telecommunications service, which would allow greater regulatory oversight. Regrettably, it chose not to, and instead passed a limited set of rules that did not ban the practice of paying to move content faster and largely exempted wireless broadband services.

FCC Protects Job Destroyers, Not Job Creators

Art Brodsky of Public Knowledge makes a compelling case that the Federal Communications Commission is refusing to take actions that will create thousands of jobs. And his estimate is probably low.

Smartly, he doesn't just pin it on the FCC, where the stumbling block appears to be Chairman Genachowski (both Copps and Clyburn already want to help the innovators and true job creators) but also on Congress

To explain:

Once upon a time, the old, old AT&T was the sole supplier of telephones and other equipment to consumers and businesses. The FCC, in a series of market-opening orders, culminating in the 1968 Carterfone ruling, finally freed the non-AT&T world to provide telephone equipment. Through the years, consumers and businesses had many more choices as new companies sprang up to provide home phones, business phones, and business switching equipment for voice and data. Anyone could buy a phone and plug it in. At one telephone equipment show in the mid-1980s, a small California computer company said it was going to enter the telephone business, but only put up an empty booth promising products later. (Whatever happened to those Apple guys and their phones, anyway?)

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One reason is that the FCC over the years succumbed to the Big Telecom campaign to put all the little guys out of business through subterranean means that the public would never see (like charges big phone companies levy to connect to their network). Another is that the FCC gave up the authority over Internet access (broadband), which leads to its current troubles in trying to justify legally how to get an open Internet and will likely lead to future controversies over how to support broadband deployment (universal service).

Right now, it doesn't matter whether Democrats or Republicans appoint FCC Commissioners so long as 3 of the 5 commissioners are more concerned with what benefits a few massive companies rather than the vast majority of businesses and citizens.

FCC Logo

This is exactly why communities are smart to build their own networks -- they have more control and are less damaged by the poor decisions and waffling of the federal bodies charged with making telecom policy.

AT&T, CenturyLink, Comcast, and the other big cable/telephone companies keep consolidating -- killing jobs directly by laying off workers and then killing jobs indirectly by raising the prices they charge for their unreliable services that compare poorly with overseas competitors. But this allows them to invest heavily in lobbyists and legislatures, which is their comparative advantage (certainly not expertise in telecom).

We need an FCC that cares about small businesses and citizens, but more importantly, we must ensure that smart, innovative communities are able to invest in themselves regardless of what decisions the FCC makes.

Don't Sell the Public Airwaves to the Highest Corporate Bidder

During the recent budget negotiations, one plan called for taking valuable wireless spectrum that is intended to be used as a commons and auctioning it off the massive corporations to monopolize. Rather than enabling a whole new generation of wireless technologies that would create countless jobs and ongoing opportunities for innovation (some have described it as Wi-Fi on steroids), it would have created a one-time cash infusion while further consolidating the incomparable market power of AT&T and Verizon. Preserving as much spectrum as possible as unlicensed commons allows communities, small businesses, and activists to build the wireless networks they need because they cannot afford to license spectrum for their sole use.

Wally Bowen wrote the following op-ed urging a more sensible approach. Fortunately, the spectrum auction was dropped from the plan - but it will undoubtedly come up again. This was originally published in the Charlotte Observer on July 31 and is reprinted here with permission.

U.S. House Republicans are pushing a proposal to sell off some of the nation's most valuable real estate as part of a debt-ceiling deal, apparently unaware of the harm it will do our economy.

This real estate is a portion of the public airwaves so valuable that it's been called the "Malibu beachfront" of the electromagnetic spectrum. This lower-frequency spectrum, previously reserved for broadcast radio and TV, is far superior to "Wi-Fi" frequencies used for Internet access - and for innovative devices ranging from microwave ovens and cordless phones to garage-door openers and baby monitors.

This prime spectrum can deliver broadband speeds that support high-definition video for telemedicine in rural and other underserved areas. This spectrum is especially plentiful in rural America, and could help connect millions of low-income citizens to affordable broadband services. It could also spark a new wave of high-tech innovation and job-creation far greater than the Wi-Fi boom of the last 25 years.

Wi-Fi Logo

The genius behind the first wave of Wi-Fi innovation was unlicensed spectrum. Though these higher frequencies were once considered "junk bands" by radio engineers, designating them for unlicensed access gave innovators the freedom to experiment. It also gave investors incentive to take risks in launching new products.

Unfortunately, the GOP-backed plan would gut the huge market potential of this high-octane spectrum by selling it to the highest bidders: incumbent carriers more interested in shutting-out competition than in igniting the next great high-tech boom. Once auctioned, the spectrum would be licensed, creating enormous barriers-to-entry and disincentives for innovators, entrepreneurs and investors.

Oddly, House members pushing this auction plan - inappropriately called the "Spectrum Innovation Act" - acknowledge unlicensed spectrum's market advantage. But their mechanism for providing unlicensed spectrum is bizarre.

The bill would allow companies - and presumably the public - to place bids for this spectrum either as licensed or unlicensed. This never-before-tried auction would then pit the highest bid for licensed spectrum against the sum of all bids for unlicensed use. If the latter exceeds the former, the U.S. Treasury would reap the proceeds and the nation's economy would reap the rewards of the next unlicensed Wi-Fi boom.

But common sense should red-flag this auction scheme as unworkable. Even if companies and concerned citizens attempted to coordinate bids for unlicensed use, laws against collusion would have to be set aside. And why would smaller firms risk their money if they can assume larger firms like Google and Microsoft will do the heavy-lifting? Clearly, this proposed auction scheme is cover for a cynical spectrum-grab that would rob us and future generations of this prime electromagnetic real estate.

Let's hope lawmakers come to their senses quickly and dismiss the lobbyists pushing this self-serving scheme.

The amazing array of wireless devices developed over the past 25 years proves that unlicensed spectrum attracts investment, spurs innovation and unleashes the power of competitive markets. Unlicense this next-gen spectrum and let the innovators and job-creators get to work.

Preserve Unlicensed Spectrum - White Spaces At Risk

If the future is wireless, we have to preserve unlicensed spaces. To explain: most wireless stuff uses licensed spectrum - where only a single entity has permission from the FCC to use a specific wavelength of spectrum. While this is great for those who can afford to license spectrum (companies like AT&T and Verizon), it is not particularly efficient because the rest of us cannot use those wavelengths even if AT&T and Verizon aren't (which is particularly a problem in rural areas).

Contrast that approach with Wi-Fi, which uses unlicensed spectrum. There are portions of spectrum where the FCC has said anyone can do anything. This is why we do not need permission to set up wireless networks in our house.

Last year, the FCC made a great decision to make "white spaces" wireless technology unlicensed -- which will allow more of us (again particularly in rural areas) to use white spaces without having to get permission. Because this decision creates a larger potential market, we would have more manufacturers interested in creating gear -- meaning more innovation and a lower cost to establish wireless networks (that are far more powerful than Wi-Fi allows).

But now Congress is considering reversing that decision and licensing that spectrum to generate a few billion dollars of one-time revenue for the government -- at a cost of far more than billions of dollars of lost opportunities, particularly in rural America where these unlicensed white spaces are the only real opportunity to rapidly deliver broadband in the short term.

In short, keeping these white spaces unlicensed will be far better for rural economies, innovation, and productivity than a one-time infusion of cash into the federal government.

These decisions are going to made shortly, so I encourage everyone to check out Public Knowledge's Action Alert calling on us to contact our members of Congress to oppose this approach.

Community Groups Oppose AT&T Takeover of T-Mobile

We at the Institute for Local Self-Reliance signed on to a letter organized by our friends at the Media Action Grassroots Network asking the FCC and Department of Justice to thoroughly review AT&T's proposed takeover of T-Mobile -- read the press release.

“Our communities cannot afford higher prices and less choices. We need the FCC and DOJ to block this takeover if it's found to be in violation of antitrust law and does not meet public interest obligations,” said Betty Yu, National Organizer for MAG-Net.

"If AT&T takes over T-Mobile, it will be a disaster for all mobile phone users. It will stifle information, choice and innovation- and lead to higher prices and fewer jobs nationwide, added CMJ's Policy Director, amalia deloney. "It's a real jobs and democracy killer.”

The groups also contend the takeover will disproportionately harm consumers of color, who rely on their cell phones to access the Internet more than whites. While 10 percent of whites access the Internet only from their phones, 18 percent of blacks and 16 percent of English-speaking Latinos depend on affordable wireless coverage to get online.

And an excerpt from the letter [pdf]:

The impact that this merger would have on affordable mobile phone service, broadband access and adoption, openness on the mobile web and broadband competition presents a real threat to our communities. We hope that the Department of Justice and Federal Communications Commission will examine AT&T's proposed acquisition of T-Mobile with appropriate scrutiny and protect our communities by blocking this merger.

We intend to host a series of open and participatory meetings in our communities to discuss this merger, and we hope that FCC Commissioners will commit to joining us. It is only by communicating directly with people and hearing our stories that you will feel our deep concerns with this merger and the devastating impact it would have on our communities.

We continue to advocate for universal, affordable, fast, and reliable broadband, which to us means a wired connection eventually to all homes that are connected to the electrical grid. But in the meantime, one cannot dispute that mobile access to the Internet is an essential tool for many communities and that this merger will raise their prices and make it harder for low-income communities to afford modern communications.

Further, we are deeply skeptical that further consolidation in this industry is anything but bad news for people and small businesses -- AT&T already has too much market power, allowing it to keep prices too high and investment too low.

The Fundamental Danger of Restricting Local Authority to Build Broadband Networks

Several days at the National Conference for Media Reform in Boston gave me time to reflect on the importance of protecting local authority to build, own, and operate their own networks connecting people and businesses to the Internet. Multiple presentations focused on the importance of and strategies for ensuring access to the Internet is not controlled by a few companies -- and most of these strategies are focused at federal government agencies and Congress.

While we support these efforts, the Institute for Local Self-Reliance is not a DC-centric organization. We try to help folks in DC learn about what is happening outside the beltway, but our passion and work focuses directly on helping local communities invest in themselves and preserve their self-determination. 

Access to the Internet will likely be the key infrastructure investment that determines how well communities fare in the coming years. Unfortunately, they have very little control over how those investments are made when the networks are owned by private, absentee companies. Efforts like Universal Service Fund reform, fixing the FCC, re-writing the telecom act, and ensuring network neutrality depend on overcoming incredibly powerful (due to their scale and lobbying power) interests in Washington, DC. But local communities have very little power outside their borders... with some in state capitals and practically none in the nation's capital.

Attacks at the state level on the fundamental right of communities to build this essential infrastructure are intended to eliminate their one means of gaining some control over their digital future. Too many states already ban or limit local authority to build these networks -- and with the Time Warner Cable bill to crush community networks in North Carolina picking up steam and South Carolina's similar attack even on broadband stimulus projects, we will see hundreds more communities with no power to ensure their citizens and businesses have access to fast, reliable, and affordable access to the Internet.

This is deeply concerning.  Taking away the one tool communities have to meet connectivity needs locally reducses them to begging providers to invest.  Many communities have already traveled this route and the results are rarely good.  

We strongly encourage you to talk to your legislators - (if you are in North Carolina, you need to do this IMMEDIATELY - the Senate is poised to act; see Stop the Cap! for more information) to say that communities must have the freedom to choose locally whether a community network is appropriate (and what that would mean, as there are a variety of approaches).

Talk to city leaders too, to make sure they are communicating with state officials, national officials, and relevant organizations (like National League of Cities, National Association of Counties, etc). Cable and telco lobbyists are constantly spreading lies and trying to preempt local authority. If decision-makers do not hear from you, the lobbyist message resonates all the more.

 

Protect FCC Authority to Ensure an Open Internet

Despite the FCC's lack of interest (or rather, Chairman G's lack of interest) in actually defending Network Neutrality and protecting the open Internet, we must defend the right of the FCC to ensure an Open Internet. Such is life... And right now a House amendment would deny funding to the FCC to implement net neutrality rules.

Rep. Greg Walden (R-OR), has authored Amendment 404 (aptly numbered, for us protocol geeks) to gut FCC authority to oversee companies like Comcast and AT&T. This goes above and beyond what even those carriers are asking for, though they no doubt hope it succeeds. For a quick primer on network neutrality, check out this infographic.

This amendment may be attached to the Continuing Resolution necessary to keep the government running -- a crucial resolution to pass. We have to get on the horn to ensure Representative vote against this resolution to ensure the FCC has the authority it needs to do its job (preventing AT&T, Comcast, et al. from becoming supreme gate keepers of the Internet). Many Republicans may be lost causes here due to party line discipline. However, a number of Democrats are leaning toward voting with Republicans on this issue, including one of Minnesota's: Representative Colin Peterson from the 7th District. If you are a constituent of these Representatives, make sure you contact them! Representative Peterson has previously voted in favor of network neutrality, so it is important to find out why he has changed his mind.

Network Neutrality had long been a bi-partisan issue with both Democrats and Republicans seeking to preserve the open Internet. But recently Republicans have been swayed by powerful interests that want big companies to decide how we can access the Internet.

 

These are key representatives that should be contacted. If you are a constituent or know people who are, make sure they call or email immediately!

Representative

District

Staffer

 

Cuellar

TX- 28th

Justin Vogt

Justin.Vogt@mail.house.gov

Hinojosa

TX- 15th

Greg Davis

Greg.Davis@mail.house.gov

Holden

PA- 17th

Courtney Williams

Courtney.Williams@mail.house.gov

Larsen

WA- 2nd

Seth Burroughs

Seth.Burroughs@mail.house.gov

Meeks

NY- 6th

Benjamin Branch

Benjamin.Branch@mail.house.gov

Peterson

MN- 7th

Chris Aicaruso

Chris.iacaruso@mail.house.gov

Craig Settles and Blair Levin on National Broadband Plan

It was supposed to be two perspectives on the National Broadband Plan, but at times it turned into Blair Levin interrogating Craig Settles, unfortunately minimizing the roles of Stacey Higginbotham (Giga Om) and Amy Schatz (Wall Street Journal).  It would have been interesting to see an event where Craig could continuously interrogate Blair, or where Stacey and Amy had more control (Stacey, in particular, is a gifted reporter unafraid to ask tough questions).    

Video: 
See video

Vermonters Angry at Wireless Broadband Stimulus Grant Instead of Fiber Loan

Vermonters are asking some hard questions about the federal broadband stimulus decision to throw money at a wireless network for Vermont rather than loaning money to an organization dedicated to delivering real broadband.

Senator Bernie Sanders convened a meeting to discuss the awards toward the end of October.

Senator Bernie Sanders led off his “broadband town meeting” Saturday morning at Vermont Technical College with a ringing affirmation of the need for better broadband coverage in Vermont and the nation.

However, nobody in the crowd of nearly 300 people needed to be convinced of that. What they wanted to know was whether a huge new federal grant to a private company was the right way to do it.

VTel, a small private telephone company, received a $116 million grant to build a FTTH network to serve their existing 18,000 footprint as well as a wireless network that is intended to serve the entire state.

In contrast, the East Central Vermont Fiber Network (which we have covered previously), applied for a loan to build a FTTH network to everyone in the 24 communities that have joined together to form the network. The ECFiber network would be run by a nonprofit and would repay the loan from revenue generated by selling triple-play services on the network.

Vermonters have a strong fiscal conservatism streak, which has shown up strongly in the discussions around this situation, something noted in a story leading up to the Sanders meeting:

He will get plenty of both from representatives of ECFiber, the consortium of 23 towns that has been planning a network of fiber-optic broadband to virtually every home in the White River Valley and beyond.

The organization was stung recently when its own request for a loan was not funded by RUS, which instead awarded a much larger outright grant to VTel, which is located in Springfield.

Our position at MuniNetworks, is quite similar to that of the these Vermonters: loans would be better policy than grants for broadband infrastructure.

Supporters of the wireless network, including VTel's CEO, Michel Guite, have suggested the $116 million grant will put Vermont at the head of the broadband pack (from story quoted above):

“The funding is in (this grant) to allow Vermont to make broadband available to everyone,” he said. “We would be the first state in the union” to do that.

“We’re not going to be behind any more; we’re going to be leading,” he proclaimed.

Unfortunately, this appears to be yet another case of wireless hype vastly exceeding the likely outcomes. A skeptical editorial from the Vermont Standard echoes the concerns of many more Vermonters with a rather understated fact:

Vermont

Vermont’s mountains and valleys are a significant barrier to universal wireless service.

Senator Sanders appeared to push VTel's CEO on the question, but reporter Dickie Drysdale caught the important qualifications in the exchange:

His first question was, “Will you bring broadband to every citizen in Vermont?” From Guité, the answer to this one was “Yes, but …”

Sanders quickly rephrased the question: “I want you to say, will you provide universal broadband service to every single unserved community in Vermont?”

Responding to this quite different question, Guité happily said “Yes, I will.”

Dickie goes on to quote David O'Brien, the Commissioner of Vermont's Public Service Department:

“This is a positive story for Vermont,” he said. This grant will help us.” Bringing fiber optic service to every point in Vermont “is not a possibility,” he said.

For those unfamiliar, O'Brien's record on broadband is hardly impressive. He allowed the disastrous Verizon-Fairpoint fiasco that has resulted in a marked decline in telephone reliability while customers were regularly overcharged.

We should be thankful O'Brien was not in a position of authority one hundred years ago, to assure everyone that universal electrical grids were "not a possibility." The reality is that FTTH to everyone in Vermont is not only a possibility, it is a certainty barring the end of human civilization. The idea that Vermonters will use copper in 50 years to communicate is absurd.

The question is when Vermonters will have access to fiber-optic networks -- and policy decisions to shower private companies with grants to build wireless networks rather than using loans to allow communities to build FTTH networks (that will be directly accountable them) will only delay the inevitable. An almost universal wireless network is a step forward for a state so far behind in communications infrastructure; but it will not be the envy of the nation and its pathetic reliable and speeds will not drive economic development.

Overblown claims about the capabilities of wireless led to a press release and white paper from ECFiber, which admitted "Wireless is 'Better than Dial-up,'" while admonishing "Fiber is 'Future Proof.'"

Wireless fixed broadband is simply not good enough. It has been tried in Vermont and it doesn’t work very well (just ask any user) – the gap between wireless and fiber will only widen in the future.

The white paper is real reality check for those who believe wireless will solve America's broadband problems:

Vermont’s mountainous topography presents real challenges to wireless broadband (both fixed and mobile.) Many cell sites will be required to achieve reasonable theoretical coverage rates using standard propagation models. (N.B., DO most Vermonters want hundreds of new ridgeline cell sites 30 feet above treeline? And how will all these cells in remote locales be connected with fiber to the Internet?) This theoretical coverage will be significantly reduced by local factors, especially foliage.

There are many ECFiber pre-registrants that live in areas nominally “covered” by fixed wireless Internet service providers (“WISPs”) but are unable to access their services because of local topography or foliage constraints. Those that have access to fixed wireless acknowledge that it is “better than dial-up” but are not happy with the service’s reliability or speed. Advertised speeds are often not achieved (particularly for users on the edge of a cell site or without line-of-sight) and speeds drop significantly during busy hours.

Many have noted that they both need and desire to stream video over their broadband connection -- especially at the Vermont Law School. But the wireless broadband from VTel will almost certainly fail to do that reliably.

VTel's CEO told Vermont Public Radio that he would have loved to run fiber-optics through all of Vermont:

"But all of Vermont would cost a billion dollars and nobody was offering that."

No one should offer that!! We aren't talking about charity here. This is infrastructure! This is exactly how the private-sector mindset that fails to understand the nature of infrastructure. Broadband networks are not the product, they enable all other products. They are essential for commerce, as well as education, and soon for health care. Infrastructure should be paid for the public that benefits from it, as the roads are. And when the costs are too large for the community, the federal government can help with long term loans, and perhaps grants where essential.

ECFiber understands this. And while ECFiber would not have connected all of Vermont with a single broadband stimulus award, it would have solved the communications infrastructure problem for these 24 towns for at least one, and probably several more, generations. It would have expanded to cover more Vermonters, as we have seen community fiber networks do elsewhere recently (often with stimulus awards).

The supreme irony of the massive federal grant to VTel is that it may result in Vermonters having to wait longer to get universal access to real broadband. Any entity, public or private, will find it more difficult to pay for the costs of building a network in Vermont because the wireless network will provide good enough service for those with good line-of-sight to the towers. Having lost those customers, a proper network will have fewer potential takers, making it more difficult to justify the costs.

This was our concern when we first learned of the broadband stimulus program. Giving out grants to private companies who will provide "better than dial-up" service is an extremely poor use of our tax dollars. It solves no long term problem; it really makes the longer term problems more difficult to solve.

But what does VTel care? No one was going to pay them to build fiber to everyone anyway, right?

Fortunately, ECFiber is moving forward with a pilot project expected to break ground in the spring.

Photo courtesy of chensiyuan, used under Creative Commons license