Thursday, January 07, 2016

AT&T exec: Mobile wireless primary driver of fiber deployment (and John Donovan's inapt cite of Moore's Law)

Donovan: AT&T Beating Moore's Law | Light Reading: Part of achieving those capex gains while continuing to meet rising demand for bandwidth is AT&T's integrated planning. While its Project VIP local fiber deployment initiative has wound down, the company is still able to push fiber more deeply into some areas, based on the need for business services or backhaul for cell towers and small cells, Donovan said.

"We have a really good cost curve on incremental costs for wireless," he said. "We are still putting fiber out where it is economic -- that is a big part of our program."

Yet another project to nominally push fiber to premises -- like Project Pronto and  Project Lightspeed before it-- is going away as AT&T like other big telcos shifts its focus away from residential and small business premise service to the mobile segment.

Donovan's invocation of Moore's Law unfortunately perpetuates the incorrect analogy of telecommunications service as a consumptive utility like electric power or natural gas. In the world of telecommunications, Moore's Law more properly applies to the growth in consumer bandwidth demand as I blogged in 2010. Additionally, Moore's Law applied to the total microprocessor market unlike the segmented markets employed by legacy telephone companies like AT&T.

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