Image
Fast, affordable Internet access for all.
open access
Content tagged with "open access"
Video on Australia's Proposed National Broadband Network
Alcatel-Lucent has created a terrific video (I saw it at Fiberevolution.com) for Australia regarding their proposed National Broadband Network. Australia is the latest of many countries poised to surpass the U.S. while we decide whether to take control of our future or let Comcast and AT&T control it. I recommend the video, and not just for the accent. Most of the video applies equally to the U.S. in terms of what pressures we face and a possible future. For those unfamiliar, the NBN will be a massive collaborative project between the public and private sector in Australia, resulting in an impressive open access broadband network. We need more videos like this in order to explain to everyday Americans why this infrastructure is so important and we cannot leave it to a few monopolistic companies to build.
100 Mbps to everyone for $350 billion
We finally have a realistic estimate of the cost of bringing 100Mbps to every home in America... and Light Reading labeled the cost "jaw-dropping."
Want to provide 100-Mbit/s broadband service to every U.S. household? No problem: Just be ready to write a $350 billion check. Federal Communications Commission (FCC) officials shared that jaw-dropping figure today during an update on their National Broadband Plan for bringing affordable, high-speed Internet access to all Americans. The Commission is schedule to present the plan to Congress in 141 days, on Feb. 17.Don't get me wrong, I agree that $350 billion is a lot of money. On the other hand, we spent nearly $300 billion on surface transportation over 4 years from 2005-2009. $350 billion buys a fiber-optic network that will last considerably longer. Additionally, such a network will generate considerably more revenue than a highway. In fact, these networks will pay for themselves in most areas if they can access to low-interest loans. Consider the comments of Deputy Administrator Zufolo (of the Rural Utilities Service) from my recent panel at NATOA:
Zufolo explained the RUS decision to use its $2.5 billion in funds primarily to subsidize loans and not provide grants, as the agency's best opportunity to make the more efficient use of the federal money and have maximum impact. Because the default rate on RUS loans is less than 1% and the subsidy rate is also low, only about 7%, it costs the government only $72,000 to loan $1 million for rural network development, she said.Let's say that RUS decides to embark on getting 100 Mbps to everyone in a rural area - some of the projects will be riskier than the standard portfolio, so let's assume it costs the federal government $100,000 to loan $1 million (makes it easier math too). In order to spur the $350 billion investment for these networks, the government would have to put up $35 billion.
Ranking Broadband Stimulus Applications in Minnesota
Our focus on the broadband stimulus is almost entirely on last-mile infrastructure because it is the most challenging and expensive problem to solve before all Americans will have affordable access to the broadband networks they need in the modern era. As we are most familiar with Minnesota, we decided to take an in-depth look on who is proposing what projects in our state.
Total Infrastructure Grants Requested for Last Mile solely in MN: at least $240 million
Total Infrastructure Loans Requested for Last Mile solely in MN: at least $85 million
Groups seeking stimulus funds to deliver last-mile broadband access in Minnesota have asked for hundreds of millions of dollars. By my tally, some 17 applicants are seeking to serve Minnesota with last-mile access (I threw out applications pertaining to middle mile infrastructure, digital divide, and those last-mile projects that combine Wisconsin and North Dakota areas) have requested some $240 million in grants and $85 million in loans.
If one assumes that the total amount of money is divided evenly among the states, this is somewhere around 3x as much stimulus money that will be awarded to Minnesota applicants over the course of the multiple rounds of funding.
At some point, this list will have to be winnowed and prioritized, so let's delve into it. All applications still must survive the peer review process (ensuring they met NTIA/RUS requirements), the incumbent challenges (incumbents can veto applications by showing that targeted areas already have broadband advertised to them), and the prioritization of surviving projects by each state (no one seems sure of how this will happen in Minnesota, our Governor is too busy not running for President in 2012).
There are two applications that should be jettisoned immediately, Arvig Telephone Company and Mid-State Telephone Company, both of which are owned by TDS Telecom.
Free Press Responds to 'Sloppy' Incumbent Broadband Arguments
Image
The American Recovery and Reinvestment Act of 2009 directed the Federal Communications Commission (FCC) to develop a national broadband strategy. FCC invited comments and then invited replies to those comments in summer 2009. The Free Press Reply Comments deserve to be singled out for revealing some of the lies of large telecommunications companies like Verizon, AT&T, Comcast, Qwest, and others. It also describes many of the ways that these companies harm the communities that are dependent on them for essential services. I've highlighted some passages below that show the ways in which these companies put profit above all else. These companies claim that regulation discourages investment and deregulation (allowing a higher degree of concentration or larger monopolies) encourages increased investment in better networks - an incredibly self-serving claim that Free Press shows to be false on pages 13-29.
Competition -- meaningful and real competition -- and not regulation is the primary driver behind investment decisions. Where meaningful competition exists, incumbents are compelled to innovate and invest in order to maintain marketshare and future growth. Where competition is lacking -- such as it is in our broadband duopoly -- incumbents will delay investment, knowing full well they can pad their profits on the backs of captured customers who have no viable alternatives. (Page 14)
Regulations like open access and non-discrimination encourage competition and should be strengthened. Free Press offers an in-depth explanation of how Verizon has dumped millions of customers on other companies that clearly could not handle the burden.
Verizon began the purging of less lucrative areas with the sale of Verizon Hawaii to the Carlyle Group in 2005, a company that had no previous experience in operating telecommunications services. By Dec. 2008, the company, now called Hawaii Telecom, had lost 21% of customers and filed for bankruptcy. (Page 26)
Verizon then sold most of their New England lines to Fairpoint, which is currently heading for bankruptcy. Fairpoint's customers are not the only ones suffering - the independent companies that resell services over that infrastructure are also suffering because Fairpoint is utterly unable to meet its obligations.
FTTH: Making That Business Model Work
A one hour slideshow discussing the economics of FTTH - unfortunately it seems to have rudimentary controls that do not allow fast fowarding or rewinding, so pay attention! You can also read the bullet points to get a sense of whether you will be interested or not.
Fiber to the Home: Making That Business Model Work This slideshow is no longer available.
View more documents from Yankee Group.
NOFA Reactions: a Mini Round Up to Broadband Stimulus Rules
I have been digesting the NOFA (the rules for broadband stimulus projects) and I am stunned at just how much I disagree with them. I think the National Telecommunications and Information Administration, a branch of the Department of Commerce in D.C., and the Rural Utilities Service have really done a disservice to this country.
Before I highlight some commentaries that I have found most interesting thus far, I want to note that this is why we take a bottom-up approach. In talking to many people working on community networks, most everyone is frustrated and the rest are really angry. It sure seemed like the feds were heading in the right direction, but the broadband stimulus rules show just how out of touch they are. We advise communities to find ways of being self-reliant. If they are able to get help from D.C., that is great; but they should never depend upon it.
We will have some more details of our reaction to the rules soon, but for now I wanted to highlight some of the folks that reacted quickly and offered interesting thoughts.
Starting on the positive side, Andrew Cohill at Design Nine thinks the encouragement for open access networks and transparency could ultimately be the defining characteristic.
This means networks that offer competitive pricing from more than one provider get preference--this is huge, and could have important long term consequences. The rules also do something else quite important on the same page (page 66, line 1463), where there is explicit preference for open access transport, which in telecom jargon is "interconnection." The rules say that companies that post their interconnection fees publicly and agree to nondiscrimination will get preference.If he is correct, the implications are great. However, the rules certainly could have demanded open access as a condition of public money being used rather than a limited form of extra credit for those who will encourage competition in a market suffering the utter lack of it. Harold Feld, who rightly noted that good people struggled and worked on this, saw both positives and negatives in the rules. He defends the "broadband" speed definition from the FCC (768kbps down and 200kbps up):
I am in the minority in thinking they played this right.
UTOPIA's Roller Coaster Ride Continues
Anyone who tells you that UTOPIA is a "success" or that it is a "failure" is probably minimizing important problems or victories for the network. The Utah Telecommunication Open Infrastructure Agency, like so many other things in life, is a mixed bag.
For those new to UTOPIA, it is a large multi-community full fiber network that operates by only selling wholesale access to service providers. Due to a law designed to protect incumbent service providers under the guise of protecting taxpayers, UTOPIA cannot offer any services itself and is strictly open access.
For a variety of reasons - that have not and likely will not be repeated by other communities - the network has not yet met expectations. The costs have been greater than expected and the network does not yet cover its entire intended territory (some 16 communities and 140,000 people).
However, where it does operate, it is blazing fast. The service providers offer the fastest speeds at the lowest prices (see a service comparison). It has offered a tremendous competitive advantage to the businesses and communities in which it operates.
Last year, Lawrence Kingsley wrote "The Rebirth of UTOPIA" that explored where the network went wrong and how it has also succeeded. Perhaps most notably, he notes that the churn rate (people switching to other networks) is ridiculously low at .5% - a common trait to community owned networks.
Last month, Geoff Daily reported on how UTOPIA is "Transforming Failure Into Success." They have greatly improved their marketing practices - which has historically been a large barrier to success. This is an important lesson for all - even though there are very few competitors in the broadband market, they do fight fiercely for subscribers. Broadband is competitive like boxing, not like a marathon.
But the news coming out of Utah is not all cheery. Jesse, the resident UTOPIA expert, has recently explained some of the current financial problems and their origin.
Perhaps the most important lesson to take away from UTOPIA is that plans always go awry. I have yet to find a community that did not have unexpected problems along the way to building their networks.
Spring Issue of NATOA Journal
NATOA, the National Association of Telecommunications Officers and Advisors, comprises many people who are in, and work on, community broadband networks. Whether they are dealing with cable-company owned I-Nets or citizen owned networks, one of their jobs is to make sure the community has the network it needs.
Starting this year, NATOA has made its publication, the NATOA Journal, available to everyone, not just members. This will be a great resource for community broadband information.
This issue has important articles - from an in-depth comparison of the physical properties of copper and fiber to less technical arguments by Tim Nulty and myself. Tim Nulty wrote "Fiber to the User as a Public Utility."
He advances a number of important arguments:
- Universal - everyone should have access at affordable rates
- Open Access - it must encourage competition, not stifle it
- Future Proof - the technology must be built to last and meet needs currently unforeseen
- Financial self sufficiency - this can be done and the political culture suggests it must be done
Video on the Economics of Open Access
Benoît Felton of Fiber Evolution says that Open Access makes Economic Sense - in four parts:
nDanville Network Helps Police, Economic Development
Though Danville, Virginia, was hit hard by the simultaneously decline of tobacco and textile industries, the community has responded: Danville Utilities has been building a state of the art all fiber network. Like many communities, they built a backbone and connected the schools and government buildings first. They then started to connect businesses. This summer they will be rolling out a pilot project to connect a few thousand homes to their open services network. As they add more potential subscribers to the network, they will be more attractive to service providers. This should spur competition, increase innovation, reduce prices, and otherwise make the network more desirable to subscribers. Though the open access idea has been somewhat maligned following the troubles of UTOPIA (many of which had nothing to do with the wholesale model), the consulting firm Design Nine has helped both nDanville and The Wired Road move forward with a revised wholesale-only model. This approach may be gaining traction nationally depending on how the rules for the stimulus grants are written: Stimulating Broadband suggests broadband stimulus funding from USDA will favor "projects that will deliver end users a choice of more than one service provider." Back in Danville, the schools have much faster Internet access while shaving their telecom budgets. Other key features are listed on the network's site, including:
The nDanville Medical Network project has begun to connect a majority of doctor’s offices and medical clinics around the city. The network is already being used by the Danville Regional Medical Center to provide super high speed connectivity to satellite clinics and offices in Danville.
Last year, Last Mile featured an article on the network that includes some numbers, goals, and history of the project. Below is a video that discusses some of the benefits of the network.