Showing posts with label PSTN. Show all posts
Showing posts with label PSTN. Show all posts

Tuesday, October 07, 2014

US Telecom Association wants 'archaic' regulations gone | TheHill

US Telecom Association wants 'archaic' regulations gone | TheHill: Steve Davis, chairman of the board of U.S. Telecom, said some of the regulations cited "don't apply to cable companies or any of our competitors, and to the extent that they ever served a purpose, that purpose has long since evaporated."

The group pointed to a number of regulations they want to avoid, including requirements that companies "separate local and long-distance business, and requiring traditional phone companies to continue the provisioning of obsolete technology."

The group cited a speech Wheeler gave in February in which he noted that a large percentage of investment recently by telephone companies went to "maintaining the declining telephone network, despite the fact that only one-third of U.S. households use it at all."

"The future regulatory environment should be one that is based upon the world as it exists today," the group’s president and CEO, Walter McCormick, told reporters. "That is sort of like the overall theme we think public policy should move towards. This petition is a little tiny baby step in that direction."

The world of POTS (Plain Old Telephone Service) is still very much alive in much of the United States, where some 19 million homes and small businesses still rely on the publicly switched telephone network (PSTN) and dialup wireline Internet service. As long as it exists, regulators will be hard pressed to scrap rules designed for POTS without a firm transition plan in place.

The Incumbent Local Exchange Carriers (ILECs) could potentially get more than they wish for in making this request. The Federal Communications Commission could respond by effectively saying, "OK, if you don't want to comply with outdated POTS rules, you are hereby subject to Title II of the Communications Act and thereby must deploy advanced telecommunications infrastructure throughout your service territories."

Wednesday, October 09, 2013

Telcos engage in nonsensical, circular argument over regulation designed for POTS

IIA Report: Time To Begin Full IP Transition - 2013-10-08 14:53:14 | Broadcasting & Cable: Only 5% of U.S. households rely solely on traditional home phones and that means the current regulatory framework is lagging the marketplace and siphoning off investment from new infrastructure.

That is according to a just-released report from the Internet Innovation Alliance, a broadband adoption and deployment advocacy group whose 175 members include AT&T and fiber-maker Corning.
The report, from analyst Anna-Maria Kovacks, finds a "plethora of choices" for voice, video and data including from wireless devices, cell phones, wired Internet VoIP and Internet applications (Skype), and that 99% of communications traffic is now IP-delivered. She said that despite the speed differentials between wired and wireless — wired is faster — wireless was a legitimate competitor and could deliver even a competitive video service.

From the end users perspective, she said, it would be possible to make them happy with LTE as well as fixed wired broadband.

The legacy telcos are engaged in a disingenuous circular argument.  Their business models don't allow them to revamp their legacy copper cable plants -- over which they offer only outdated dialup Internet access for many premises -- to fiber to the premise (FTTP).  Oddly, however, they wonder why they remain subject to a regulatory scheme designed for POTS (Plain Old Telephone Service) delivered over Public Switched Telephone Networks (PSTN).  The answer is pretty self evident. They only have to look at their own networks and service territories for the answer. If they deployed FTTP networks to all of their customers, then their question would be relevant.

As for mobile wireless, it is not a substitute for premise service (can you spell M-O-B-I-L-E?) since it can't offer sufficient bandwidth capacity to serve various IP devices in the home ranging from video, voice service and personal devices like tablets.  It comes with bandwidth caps for good reason since compared to FTTP, mobile wireless can't even come close in carrying capacity.

Saturday, December 08, 2012

Telecom coops offer much needed alternative to build out U.S. Internet infrastructure

This Wall Street Journal article explores the Faustian bargain AT&T, America's largest wireline telecom provider, struck with the U.S. Federal Communications Commission to begin winding down its obsolete copper Publicly Switched Telephone Network (PSTN):
Mr. Stephenson himself has made it clear that AT&T would rather just sell off its regulated phone territories the way rival Verizon has done. But those sales haven't worked out swimmingly for the buyers, so now buyers can't be found, and neither would regulators likely bless further sales.  AT&T's plan, then, amounts to a compromise: AT&T will spend several billion dollars making undesirable investments if Washington will relieve it of the unsustainable regulatory burdens associated with the old copper voice network.
This is not an optimal solution for either AT&T's shareholders or for the many Americans who despite AT&T's expansion plans would remain disconnected from the Internet and the Voice Over Internet Protocol (VOIP) service it could provide to replace voice telephone service delivered over the nation's aging copper Publicly Switched Telephone Network (PSTN).  An alternative is clearly needed.

The good news is one exists as does its funding mechanism: cooperatives.  In the 1930s, the U.S. Department of Agriculture's Rural Utilities Service (RUS) made funding available to coops to build the needed infrastructure to deliver electric power and phone service.  The RUS remains in place today.  Given the problems investor-owned telcos like AT&T face deploying needed Internet infrastructure as shown in the WSJ story, the RUS should be given a higher profile and adequately funded to facilitate the much needed telecom coop alternative for the construction and operation of Internet infrastructure.

Friday, December 24, 2010

The post-broadband era begins

As 2010 draws to a close, we are also seeing the closure of a chapter of the early Internet era and the beginning of a new one. The first chapter opened in the early 1990s when the few people who connected to the Internet did so with narrowband "dial up" connections using the Public Switched Telephone Network (PSTN). By the end of that decade, dialup evolved from 1200 and 2400 baud connections to 56Kbs connections as well as ISDN offering Internet connections of up to 128Kbs. At the same time, "broadband" began emerging with DSL and Internet services offered by cable companies.
We are now beginning a new chapter where throughput speeds that defined an Internet connection will be less relevant than the services and applications people use when they access the Internet. If the connection can't support them, it no longer will be considered bona fide Internet-based service. From a practical standpoint, that means dialup and satellite connections are now obsolete since they cannot provide end users a full Internet experience due to the inherent physical limitations of their technologies.

Also being rendered obsolete as bandwidth demand grows exponentially, particularly with the explosion of video content and mobile Internet:

-- The U.S. Federal Communications Commission's definition of a "broadband" Internet connection as 4Mbs down and 1Mbs up.
-- The term "broadband black hole" and dubious efforts to "map" these locations. These areas will simply be regarded as disconnected from the Internet, similar to the "off the grid" term applied to those locations lacking electric power service.

Thursday, August 26, 2010

Time to relegate "broadband" to the history books

The term "broadband" is outdated and should be retired.

It came into wide use a decade and a half ago to denote a premium telecommunications service on the publicly switched telephone network (PSTN) that provided a faster, "always on" Internet connection compared to now obsolete "narrowband" dialup and ISDN service.

The Internet is now a de facto global telecommunications system providing Internet protocol-based voice and video communications in addition to early "broadband" fare of email and the World Wide Web.

Instead of broadband, we should simply refer to the Internet. The term "broadband' is out of place in the context of today's "Internet ecosystem" to borrow a phrase from the Federal Communications Commission's National Broadband Plan issued in March. (Which should be retiled the "National Internet Plan")

References to "broadband" also pose problems insofar as they spark debates over what bandwidth and speeds constitute "broadband." Its continued use also aids legacy telco and cable industry players who want to keep it around so they can incrementally charge a premium for "broader" bandwidth.

The incumbent legacy providers also like the term "broadband" because it keeps the calendar where they want it: around 1999 when the phrase meant only Web and email — and not the bandwidth intensive applications we're seeing in 2010 that their incomplete and outdated infrastructures are unable to deliver to all customers in their self proclaimed "service areas."

It also helps the incumbents conjure up (and dust off old) self serving studies purportedly showing many folks don't "adopt" broadband because they have little interest in the Web or email. Ergo, it's not critical telecommunications infrastructure should be available to all homes and businesses when in fact it should be.

It's time to say "bye" to "broadband."

Saturday, April 24, 2010

Paradigm shift in telecommunications underway

As the legacy publicly switched telephone network (PSTN) becomes increasingly obsolete (it's in a "death spiral" according a pre-Christmas 2009 Federal Communications Commission filing by AT&T), regulators like the FCC are grappling with a paradigm shift in telecommunications.

The FCC's current regulatory framework is more oriented toward PSTN than the Internet that is rapidly replacing it. It too is growing outmoded, leaving regulators struggling to devise a successor.

And as FCC Chairman Julius Genachowski has noted, the FCC also faces a major challenge in figuring out how to best address market failure that has left at least seven million U.S. households offline according to the FCC's own estimates. At a time when the PSTN is replaced by the Internet, if you don't have an "always on" terrestrial Internet connection, you don't have modern telecommunications service. As PSTN becomes obsolete, so does the PSTN means of Internet connectivity: dialup access that was state of the art nearly two decades ago.

This is truly a time of major transition in telecommunications. As with any major shift, there will be a tension between those who want to hang on to the old paradigm -- in this case the legacy single purpose "telephone" and "cable" companies whose business models are based on billing for incremental services delivered over closed, proprietary networks -- and those who want speed the shift toward alternative business models based on open access IP-based networks.

Saturday, March 27, 2010

Legacy telco regulatory concerns overblown as Internet replaces PSTN

The United States is moving from an era of the highly regulated, proprietary publicly switched telephone network (PSTN) to a new telecommunications paradigm in which the Internet is replacing the PSTN and the "plain old telephone service" (POTS) it delivered.

Both of America's biggest investor-owned telcos, AT&T and Verizon, have heralded the death of PSTN/POTS. Verizon is adopting Internet protocol-based next generation technology in its place. AT&T went so far as to declare its legacy, copper-based wireline infrastructure in a "death spiral" in a filing with the U.S. Federal Communications Commission just before last Christmas. That business, AT&T wrote, cannot be sustained as more and more residential customers drop their land line phone service for wireless PCS devices or use their Internet connections to make voice calls.

As the nation adopts this new Internet-based telecom infrastructure, the legacy carriers are worried that the FCC will attempt to overregulate it. Those concerns are overblown. There will be no need for increased regulation at a time when the telecom infrastructure is changing and alternative business models -- most notably locally owned open access fiber infrastructure -- are emerging.

Strict regulatory oversight is only needed in a monopolistic market. New business models such as municipal and cooperative-owned open access fiber networks dilute the monopolistic market power of the legacy carriers and thus the need for enhanced regulation. If enhanced regulation does come about, it will likely be aimed at penalizing legacy telcos that stand in the way of federal policy to expand advanced telecommunications infrastructure and Internet access with uncompetitive market practices.

Thursday, December 31, 2009

USF reform alone won't achieve universal U.S. broadband

Just as the U.S. Federal Communications Commission set a date for the end of analog broadcast television earlier this year as TV signals went digital, it should also establish a sunset date for the legacy Publicly Switched Telephone Network (PSTN), AT&T asserted in a December 21 filing with the FCC.

The business model for the PSTN -- a proprietary network comprised of central office switches, amplifiers and copper cable plant designed to deliver what's known as plain old telephone service -- POTS -- is in a death spiral as the number of people shutting off their landline voice service in favor of wireless and Voice Over Internet Protocol (VOIP) services has accelerated in recent years, AT&T notes. In the meantime, the telco stated, the FCC should modernize its regulations to ensure an orderly transition from the PSTN to an Internet Protocol (IP) based system, taking full regulatory control and ending state oversight authority originally established for regulating POTS.

However, legacy PSTN/POTS isn't alone in suffering from serious business model problems. So does the IP-based model that is the future of telecommunications. The reason: what AT&T describes as the "enormous" amount of capital necessary to complete the build out of required infrastructure to ensure all Americans have access to IP-based services just as basic telephone service is nearly universal. In its filing, AT&T concedes eight to ten percent of American households lack access to broadband, although another estimate released in October placed the figure higher at 12 percent, including even spotty access in major metropolitan areas.

In order to allow telcos to direct more capital investment to building out broadband infrastructure, AT&T proposes the FCC scrap rules requiring telcos to provide POTS so they can redirect funds to upgraded infrastructure capable of delivering IP-based services. "The legacy PSTN network – which is rapidly hemorrhaging customers and revenue – is now diverting much needed funds from investments in broadband networks," AT&T states in its filing.

AT&T also wants the Universal Service Fund (USF) -- created to subsidize the cost of providing POTS in high cost areas -- retasked to do the same for IP-based services. Doing so would help achieve the Obama administration's goal of broadband access for all Americans, according to AT&T.

But there's a difference between USF subsidies for voice telephone service and IP-based services. Deployment and adoption of basic phone service played out over decades. By contrast, there's a huge reservoir of pent up demand for broadband AT&T and other big telcos assured would be offered to all U.S. households when the Telecommunications Act of 1996 was enacted providing telcos tax breaks and other incentives intended to pave the way for them to universally deploy fiber-delivered telecommunications services by 2006. Didn't happen, obviously.

The FCC and other policymakers should keep this history and differences in demand between POTS and IP-based services in mind. Reforming the USF isn't likely to be the sole solution to remedy market failure for IP-based services. They must also encourage alternative business models such as open access fiber networks owned by local governments and telecom cooperatives through subsidies, low cost loans and tax incentives.

Thursday, December 03, 2009

FCC puts broadband in proper perspective

The term broadband -- generally used to refer to Internet connectivity beyond first generation dial up access -- is a component of the larger transformation of the telecommunications infrastructure. The legacy Public Switched Telephone Network (PSTN) system that relies on copper cables and central office switches owned by the phone companies is of the pre Internet period. In the post Internet age, the Internet itself is becoming the phone system. Routers take the place of telephone switches and fiber optics supersede copper cable.

The U.S. Federal Communications Commission (FCC) put broadband into its proper perspective in a public notice issued Dec. 1 calling for public comment on this conversion of telecommunications infrastructure from a "circuit switched network to an all-IP (Internet Protocol) network."

The notice describes broadband as "a leading indicator of the major transitions in communications technology and services" and "a growing platform over which the consumer accesses a multitude of services, including voice, data, and video in an integrated way across applications and providers."

The FCC notice shows the agency -- charged under the American Recovery and Reinvestment Act of 2009 with developing recommendations for Congress by next February on how to best achieve universal broadband access -- is thinking beyond broadband and of the larger regulatory scheme in "the spirit of understanding the scope and breadth of the policy issues associated with this transition" and the "appropriate policy framework to facilitate and respond to" this shift.

Tuesday, September 22, 2009

Verizon abandons PSTN, commits to next generation IP-based services

Verizon has become the first big telco to fully commit to next generation Internet Protocol-based service delivered over fiber in which the Internet replaces the publicly switched telephone network (PSTN) designed for plain old telephone service (POTS) delivered over twisted pair copper wire.

“We don’t look any different than Google,” Verizon CEO Ivan Seidenberg told a Goldman Sachs investor conference last week. “We can begin to look at eliminating central offices, call centers and garages.” Seidenberg's remarks were reported in Saul Hansell's Bits column in The New York Times.

That means a much smaller, shrinking wireline footprint for Verizon as the company sells off its old copper plant and deploys its FiOS fiber to the premises plant. In effect, Verizon is starting almost from scratch to build a new wireline plant. And just as with the early copper cable plant, urban areas will see it many years before those living outside them will. That sets the stage for history to repeat the cycle of the early copper POTS deployments of a century ago in which less densely populated areas established telecom cooperatives in the meantime. Only this time the coops will be putting up fiber instead of metal.

In contrast to Verizon, the dominant American telco, AT&T, is trying to keep one foot in its PSTN past by attempting to pound the square peg of ever increasing IP-based bandwidth demand -- particularly for video -- into the round hole of copper POTS with its Project Lightspeed/U-Verse FTTN architecture. This gambit leaves AT&T far less strategic headroom and could ultimately lead to the company getting out of residential wireline altogether in the first part of 2010.

Monday, June 08, 2009

Why telcos drag their feet on residential broadband

In the fall of 2007, Ralph de la Vega, AT&T's group president for regional telecommunications and entertainment made a pronouncement with profound implications that were largely overlooked in the mainsream media.

de la Vega told Investor's Business Daily that AT&T would ultimately shut down its existing voice network and replace it with a VOIP (Voice Over Internet Protocol) system in metro areas where U-Verse is being deployed.

Since U-Verse deployment has been delayed and scaled back, it calls into question the future of AT&T's wireline residential market segment. Essentially de la Vega pronounced the beginning of the end of the Publicly Switched Telephone Network (PSTN) and its replacement by the Internet with Next Generation Telephony.

That also means telcos' proprietary central office switches are on a fast track to obsolesence, destined to be replaced with Internet servers and field-based fiber optic distribution equipment. Industry observers like Bob Frankston are right to accuse telcos of foot dragging by creating artificial bandwidth scarcity and restricting broadband access in order to live in the copper-bound PSTN world for as long as possible. This is the unspoken subtext to the larger Strum und Drang on this blog and elsewhere over the pathetically poor state of broadband availability in much of the United States. It's typically explained as a simple return on investment problem, but there's more to it than that.

As the Internet wreaks massive disruption in mass media, it also threatens an end to the days of Plain Old Telephone Service (POTS) delivered over twisted copper. Just as people are canceling their newspaper subscriptions, they are also ditching their residential land lines. And who can blame them when all they can get over them is POTS and perhaps DSL (an acronym that should mean Doesn't Serve Lots)?

It also explains why first tier telcos like AT&T are redefining the residential wireline segment as "personal wireless" services since this segment can remain proprietary if residential wireline moves out of the old proprietary, closed system scheme and into one where last and some middle mile infrastructure is owned and operated by small local providers, local governmental entities and telecom cooperatives.