Showing posts with label telecommunications infrastructure. Show all posts
Showing posts with label telecommunications infrastructure. Show all posts

Saturday, February 27, 2016

Yet another think tank makes false "market competition" argument in defense of legacy incumbent telephone and cable companies

Don’t put bureaucrats in charge of broadband | Columns | richmondregister.com: State lawmakers instead should search for ways to eliminate barriers to additional investment by private ISPs instead of raiding their customer base, which threatens to drive them, the jobs they support and tax revenues they send to Frankfort out of the commonwealth altogether.

By ending KentuckyWired once and for all, the Bevin administration would accomplish what federal bureaucrats who want to dictate the Bluegrass State’s broadband policy can’t be trusted to do: protect the best interests of Kentucky taxpayers and consumers who pay the bills.

Jim Waters is president of the Bluegrass Institute, Kentucky’s free-market think tank. Reach him at jwaters@freedomkentucky.com. Read previously published columns at www.bipps.org.

Yet another think tank attempts to argue public sector investment -- even disregarding the fact that it's woefully insufficient -- is inappropriate for telecommunications infrastructure because telecommunications infrastructure is a competitive market. This is the falsity at the heart of the argument. It's not a competitive market because competitive markets by definition have many sellers and many buyers. Telecommunications infrastructure, however, is a natural monopoly or duopoly market because the high cost of building and maintaining it keep out potential new providers. That makes it like other high cost infrastructure such as roads and highways that are financed by the public and not private sector.

Mr. Waters is preying on economic ignorance to make a disingenuous argument and in so doing is rendering a great disservice at a time when the nation's telecommunications infrastructure is far behind where it should be in 2016 and for the future. He also employs a favored tactic of the dinosaur incumbents by focusing the discussion on "broadband speeds" in order to distract from the need to replace America's outdated metallic landline telecommunications infrastructure with modern fiber to the premise networks -- a thought trap that has ensnared most public policymakers and the mainstream and info tech media. It's time he and others stopped trying to postpone the future to protect last century's telephone and cable companies and allow technological progress to take its course into the 21st century.

Monday, December 22, 2014

Financial distress of PPP toll road projects holds lesson for telecom infrastructure

Are US toll roads in crisis? | Jacques Cook | LinkedIn: In a recent article “On the Road: Navigating the twists and turns of US highway P3s” (Dec. 8, 2014), Michael Dunning describes some of the serious financial difficulties facing some of the most important US P3 toll roads. He notes that the Indiana Toll Road, once described as a trend setter in the US P3 market, has declared bankruptcy; while several major projects in California (SR-125), Texas (SH-130), Virginia (I-495 Hot Lanes, Pocahantas Highway) and Illinois (Chicago Skyway) are also in financial distress and in various stages of bankruptcy and restructuring. These are not encouraging signs for the US P3 market. Dunning notes however that there are important lessons to be learned from these transactions.

While each of these projects was funded at different times and under different legal and institutional frameworks, they share one common characteristic—they were being funded entirely with tolls paid by automobiles and trucks.
The experience here can be applied to other costly infrastructure projects like modernizing and building out fiber optic telecommunications networks. Relying completely on user fees for its financing heightens the risk of insolvency.

Wednesday, October 15, 2014

Deficient telecommunications infrastructure limits growth of telehealth

Just What the Doctor Ordered: Telehealth Poised for Growth: “Rural healthcare providers (HCP) continue to suffer from limited access to broadband speeds necessary to fulfill their rapidly expanding public and private Internet network needs vital for telehealth communications with patients and HCPs,” said Tim Koxlien, founder and CEO of Rural Health Telecom. “Upgrading rural health care provider broadband networks will dramatically enhance their ability to implement new telemedicine technologies and increase access to electronic medical records. This will ultimately enable them to better serve patients through streamlined operational efficiencies, expanded patient service access, reduced costs and improved quality of care.”

Koxlien also noted that high equipment installation costs and a workforce deficit of trained IT personnel as two challenges facing telecom accessibility. “Many local service providers are reluctant or unwilling to expand into these underserved markets because of the costs associated with designing and implementing rural networks, [and a] lack of funding,” Koxlien said.

Tuesday, August 26, 2014

Unpacking claims of “unfair competition” when the public sector finances or builds fiber to the premise infrastructure

Incumbent telephone and cable companies often cry “unfair competition” when the public sector invests in or builds fiber to the premise (FTTP) infrastructure. Let’s unpack that assertion. From the point of view of these companies, anyone who builds infrastructure they don’t own is a competitor. They really don’t compete to gain customers in a given geographical area. That’s because telecommunications infrastructure isn’t truly a competitive market characterized by many sellers and buyers. Rather than competing for customers, the incumbents’ true interest is in protecting their monopoly or duopoly status.
True competition occurs in a market where buyers and sellers are on a level playing field and buyers have relatively equal access to market players and information on their services, benefits, prices and value offered. That doesn’t happen in telecommunications infrastructure. Incumbents have the upper hand in deciding which neighborhoods they will serve, what services will be offered and at what price. And they don’t disclose where they plan to build FTTP infrastructure.

The public sector typically gets involved in investing in or building FTTP infrastructure not to compete with the incumbents, but to remedy the market failure they create given their power to pick winners and losers among the neighborhoods they opt to serve and those they choose to redline and not offer service.

Finally, since the public sector typically invests in open access infrastructure and provides wholesale access to Internet service providers (including the incumbents), that’s also not direct market competition with incumbent telephone and cable companies. It’s an entirely different playing field and certainly not the same one used by the incumbents who won’t play ball unless they own the field. Hence, there’s no direct competition, fair or unfair.

Saturday, February 08, 2014

California should invest in modern telecommunications infrastructure, not high speed rail















Stanford University public policy professor Joe Nation makes an excellent point in this article on transportation infrastructure. Nation, a former California state legislator, notes high-speed trains work in densely populated areas (like the Boston-New York-Washington corridor, for example) and not states like California with large rural, quasi-rural and exurban areas.

In the evolving digital, information-based socio-economy (much of it innovated in Silicon Valley), the Golden State would likely be better off  investing in fiber to the premise telecommunications infrastructure. Particularly since market forces don't tend to produce meaningful private investment in premise telecommunications infrastructure in less densely populated areas that are in danger of becoming neglected backwaters left off the Internet. Putting this infrastructure in place would also enable these areas to more fully participate in the digital economy, reduce the need for commutes to metro areas and benefit from services such as telehealth and distance learning.

High speed rail might have been a suitable project had it been proposed three or four decades ago. What's needed today is ubiquitous, high speed Internet.

Sunday, March 03, 2013

Robust fiber to the premise telecom infrastructure can help stem falling rural school enrollment


The Sacramento Bee reports today on rapidly falling enrollment in rural school districts in the Sacramento, California metro region.  I personally think we need help," Fred Adam, superintendent of Placer Hills Union and an executive committee member with the state’s Small School Districts' Association, told newspaper, adding, "I truly worry about the future.”

Behind the drop in enrollment, according to the Bee article, are an aging population and a declining birth rate. In rural areas, the article continues, these trends are magnified by a small employment base that has been further eroded by years of recession. With few jobs and fewer options, many families have moved to the suburbs or out of state to find work. "It's a pretty consistent story throughout California in rural communities," Adam is quoted as saying. "You can't compete with time and distance."

Yes we can.  It can be bridged by robust, Internet-based telecommunications services that can enable rural school districts to rely less on classrooms and the need to bus students to and from them, thereby reducing operating expenses.

How?  By facilitating what educators are calling blended learning.  Jeremy Meyers, deputy superintendent of the El Dorado County Office of Education (quoted in the Sacramento Bee story), recently wrote about the emerging educational method in which pupils do much of their learning and class projects outside of the classroom via the Internet – arguably the world’s biggest and best stocked library.  Back in the classroom, their teachers review their projects, answer questions and lead discussions. Authors William A. Draves and Julie Coates describe Web-based education as one of the nine defining trends of the 21st century in the 2004 book Nine Shift: Work, Life, and Education in the 21st Century.
 
Just as workshifting allows their parents to work part of the work week at the office, might someday soon students report to class on fewer days that the Industrial Age Monday through Friday schedule of the 20th Century?  This is not to say the classroom is facing obsolescence, particularly for primary students where the classroom plays an important role in the development of social skills.  But for older kids who grew up in the connected world, blended learning makes lots of sense.

Key to making this possible is fiber to the premise telecommunications infrastructure that has the capacity to deliver information in all forms as well as enable video conferencing between students, parents and educators.  In order for that critical infrastructure to be put in place, communities must come together and find ways to finance its planning, construction and operation since the business models of existing telephone and cable companies cannot accommodate the telecommunications needs of less populous areas. 
 
A virtuous bonus of more robust telecommunications infrastructure is it would also better enable parents of school age children to work remotely and run home-based businesses.  That in turn would help keep them and their kids in the community and curb declining school enrollment.

Sunday, September 02, 2012

Silicon Valley professionals head to the Sierra Nevada foothills

The Sacramento Bee reports Silicon Valley transplants are moving to Loomis in Placer County for a better real state values and an enhanced quality of life outside the bustle of the Bay Area.  A key driver of the shift: staying connected to Silicon Valley by working remotely from home.  

But that raises questions not addressed in the Bee article.  First, is the telecommunications infrastructure sufficient in some of these semi-rural areas to support remote work?  Many Sierra Nevada foothill locales are still on dialup Internet connections or have spotty, slow legacy DSL service.  Second, how does this trend jibe with the predominant Silicon Valley work culture based on collegial beehiving in open office architecture at massive corporate "campuses?"  Or does this workshifting 150 miles away from Silicon Valley campuses represent a counter trend?

Saturday, June 30, 2012

Telemedicine market to reach $2.5B by 2018 | Healthcare IT News

Telemedicine market to reach $2.5B by 2018 | Healthcare IT News: Moreover, telemedicine has been seen to be beneficial for individuals living in isolated communities and rural regions. Telemedicine technology allows patients who live in these rural areas to be seen by a doctor or specialist, who can provide an accurate and complete examination, without the patient to traveling away from their families to far-off medical centers.
The problem is these communities typically lack the necessary telecommunications infrastructure to support telemedicine.  This infrastructure gap will be more keenly felt in the near future as the U.S. Patient Protection and Affordable Care significantly increases the number of people in these areas covered by public and private health insurance.

Thursday, May 10, 2012

It's time to halt the "digital literacy" baloney and build fiber

With many areas of the United States lacking adequate fiber optic infrastructure to deliver premise Internet service, there continues to be an unfortunate effort to shift the focus away from that fact.

For example, this Texas Broadband Summit "designed to engage, educate, and equip technology providers and Texas communities with the resources and partnerships necessary to improve broadband access, adoption, and use," noting that "lack of digital literacy and the digital divide remain real issues in Texas."

What does "digital literacy" have to do with getting IPTV, VOIP and other Internet protocol-based services over fiber?   Nothing, because people have been watching TV and making phone calls for decades.  In that regard, they are already digitally literate.  And the web and email have been around for two decades and most people currently use these common services.

It's time to stop the PR baloney and work on alternative ways of building fiber to the premise -- such as community cooperatives and municipal fiber -- to fill in the gaps that investor owned telco and cable TV providers are unable to fill.

Friday, July 08, 2011

Managing by eyeballing butts in chairs instead of work product comes with $900 billion lost opportunity cost

Despite the rapid growth of the digital economy and the Internet that makes the specific time and location for getting work done less and less relevant, "management attitudes that were born in the days of sweatshops and typing pools still dominate" the American workplace, according to a June 2011 paper authored by Kate Lister and Tom Harnish of the Telework Research Network.

It estimates that if 50 million potential telecommuters in the U.S. worked from home for half the work week, the savings to their employers, communities and themselves would would total over $900 billion annually. As framed by Lister and Harnish, that represents part of the lost opportunity cost of retaining the pre-digital economy management model.

The authors also call for ubiquitous Internet access. "Without uniform access, telework will not be available to those who need it the most," they state.

Monday, June 21, 2010

Study finds teleconferencing cuts business costs, reduces carbon emissions

This study is right in line with my strong interest in utilizing advanced telecommunications infrastructure to shrink time and space and reduce the human and economic cost of physical travel. In a boom and bust economy that's been busted for the past three years, businesses are clearly interested in reducing travel expenses. If they can do so while reducing their carbon footprints, it's an added bonus.

Note this study only took into account corporate travel costs. But consider also the potential savings in time, money and fuel costs for small businesses (small businesses have travel expenses too) and for currently commuting employees of who could teleconference with managers and co-workers instead of idling on congested highways, stressed out hoping they can make a meeting at a distant office on time (while meanwhile contributing to the global obesity crisis).

This will take a massive revamp of telecommunications infrastructure to bring fiber to their homes. But it too could have an added bonus. With the time they save by avoiding a commute to the office, they could go to the gym or engage in their favorite form of exercise. Smaller carbon footprint, smaller belly, less stress, better quality of life.

Friday, April 16, 2010

Fed up with circular debate over telecom market failure, British village acts to get broadband

While the UK government (just like America's) engages in a ridiculous circular debate over whether market failure has hampered the deployment of modern telecommunications infrastructure, the residents of Lyddington, Rutland have cried "bullocks!"and taken matters into their own hands.

No debate over market failure there, where according to this Telegraph article their petitions to the incumbent providers to bring them broadband got them nothing. So several local businesses are investing fiber optic cable that will bring the townspeople connectivity of 40 Mbs for £30 a month.

A key excerpt:

Dr Charles Trotman, head of rural business development at the Country Land and Business Association welcomed the project.

But he warned that not all local communities will be able to do it themselves and the next Government must put in place measures to ensure the whole country has superfast broadband.

"You cannot rely on the markets to do it because we know for a fact that large telecommunication companies will not invest in rural areas because there is no market return. If they are not willing to do it then someone has to do it and you have to have a central strategy set by Government"