Friday, October 19, 2007

Connecticut should tell AT&T to hit the road

AT&T is at loggerheads with Connecticut regulators that want it build out its infrastructure to serve more residents and businesses as a condition of getting approval to deploy its triple play (voice telephone, Internet access, Internet protocol TV) "U-Verse" offering in the state.

AT&T contends it can't do so profitably and is threatening to pull the plug on U-Verse in Connecticut. Good riddance; this technologically challenged turkey probably won't fly anyway. Connecticut should stick to its guns and tell AT&T in clear terms that building a swiss cheese telecommunications infrastructure filled with broadband black holes is not acceptable.

This is a prime illustration of the need for the locals to take charge and create public-private partnerships with locally owned and operated telecommunications providers and tell the big, out of state corporations who would create broadband winners and losers to hit the road.

Thursday, October 18, 2007

Connecticut AG, AT&T clash in court over broadband build out

As this blog reported in early August, Connecticut Attorney General Richard Blumenthal wants to ensure the "connect" in Connecticut means the entire state and not just selected local jurisdictions when it comes to broadband access.

Blumenthal therefore is moving to force AT&T to deploy its triple play U-Verse service under state rather than local regulatory jurisdiction. AT&T is fighting back, taking Blumenthal to court to challenge his order.

This is a high profile legal showdown worth watching as a state AG with a strong consumerist reputation is basically telling the telco/cable duopoly that with market domination comes the responsibility to serve everyone as is current regulatory policy for basic telephone service.

Monday, October 15, 2007

WISP pulls out of Northern California, El Dorado County

In June 2006, NuTel Broadband Corporation, a Cranbury, NJ-based broadband wireless managed services provider announced plans to deploy wireless "mesh" broadband networks in Sacramento, Chico, San Jose and El Dorado County as part of a 14-state rollout. The company is now pulling out of Northern California.

The WISP had plans to begin rolling out service in Folsom and El Dorado Hills and then head east up US 50 into the foothills. NuTel CEO Joe Fiero confirmed the withdrawal in an email today. Fiero said the decision to pull the plug on the region was prompted by concerns from would be business partners that Fiero says feared potential competition from municipal Wi-Fi networks that would provide free or very low cost access to users. NuTel's business model involves partnering with existing ISPs and WISPs as well as residential telecommunications wiring contractors, with NuTel providing back office management as well as a VOIP (Voice Over Internet Protocol) offering via NuTel's proprietary backbone and switch.

"From a demographics point of view, we would love to be in the region," Fiero wrote. "It’s finding willing partners to build and operate the system that has been the issue. We have done exhaustive research and spent hundreds of hours to locate economic sources for bandwidth and proper antenna locations. Someday we hope to put all that to good use."

El Dorado County's locally owned and operated WISPs including Remotely Located and Sierra Advantage likely welcome Nutel's retreat, although from this blogger's perspective it appeared doubtful NuTel like Clearwire and other big multi-state WISPs would have ever served areas east of El Dorado Hills. Nor would they likely face competition there from free or cheap public Wi-Fi.

Thursday, October 11, 2007

El Dorado County economic development chief calls Internet access key

Sam Driggers, installed earlier this year as El Dorado County's economic development director, told county supervisors this week that having good Internet access is key to the county's economic health. Moreover, Driggers suggested, a higher quality of life that can be had outside urban areas should not mean going without broadband:


Driggers said El Dorado County appeals to people who want to get away from the hustle and bustle of more urban regions.

"People want to live in quality-of-life areas, but they also want to work. It's in tandem," he said, and Internet access is key. "If you don't have broadband, you don't have access to the world."

Your blogger and El Dorado County home-based business operator is heartened by Driggers' remarks to the board and hopes the supes give them the serious consideration they deserve.

To underscore Driggers' efforts to get his bosses to view the county's telecommunications infrastructure as being as vital as highways, water and power when it comes to the county's economic health, I urge county residents to sign this petition. It calls on the supervisors to direct county staff and retain necessary outside consultants to establish a public private partnership with fiber optic telecommunications vendors to utilize county rights to way to construct open access fiber to the node/neighborhood (FTTN) infrastructure to serve the current and future telecommunications needs of residents and businesses situated within unincorporated El Dorado County.

Tuesday, October 09, 2007

AT&T offers fixed terrestrial wireless broadband

AT&T is now offering fixed terrestrial wireless "broadband" connections where it doesn't provide wireline-based Digital Subscriber Line (DSL) service in addition to reselling WildBlue's satellite Internet service.

According to a customer service representative I spoke with today, the service offers speeds of 400-700 Kbs down and 250-300 Kbs up for $59.95 per month plus a $99 installation charge which includes a computer adapter card interface. Not quite broadband in this blogger's definition of 1.5 Mbs and higher, but certainly better than dial up. Ma Bell is offering a 30 day trial period for new customers, who can cancel if the service doesn't live up to their expectations.

This development comes as AT&T increases its fixed terrestrial broadband presence, deploying WiMAX-based offerings in Alaska and in the former BellSouth territory it acquired earlier this year, as well as spending $2.5 billion to acquire additional wireless radio spectrum, according to this AP dispatch today.

AT&T's foray into fixed terrestrial wireless isn't likely to offer Ma Bell a competitive edge over Wireless Internet Service Providers (WISPs) who are moving to fill the many broadband black holes in locales like El Dorado County, California. Wireless broadband offerings by El Dorado County WISPs Remotely Located and Sierra Advantage offer a greater range of choices -- including significantly higher connection speeds -- that equal and exceed AT&T's fixed terrestrial wireless offering based on speed and price. The only way AT&T can hope to compete with these emerging WISPs is to battle them on the ground by upgrading its wireline infrastructure to allow it to reliably offer higher speed connections for comparatively lower prices. So far, there's no indication it's willing to make the necessary investment, leaving the market wide open for the WISPs.

Peter Bernstein: Telcos and cable companies should deprivatize local infrastructure

Peter Bernstein correctly notes the telco/cable duopoly doesn't want to invest in infrastructure, especially over the "last mile" or two before it reaches the subscriber. Instead, telcos and cable companies want to deliver -- and bill -- for broadband-based services -- TV, voice or Internet access. Bernstein proposes the telcos and cables companies sell off their local infrastructures to local governmental entities to be operated as public utilities:

Telcos and cable companies don't really want to install, manage and maintain “plumbing.” The days when customer control was asserted because access to all services came through a monopoly access network ended with the mass adoption of the Internet. Voice over IP and wireless are just the nails in the coffin.

Why not have the service providers divest their outside plant and local switches? Local or regional authorities could regulate them and, perish the thought, really do the job.

Monday, October 08, 2007

FCC to retest white spaces devices

The Federal Communications Commission will retest several prototype devices developed by a high tech consortium to transmit long range wireless broadband over unused portions of the TV broadcast spectrum called "white spaces," Broadcasting & Cable reports. The devices failed testing earlier this year to determine if they would interfere with TV and wireless microphone signals.

The devices developed by the White Spaces Coalition, which includes Microsoft, Google, Dell, HP, Intel, Earthlink and Phillips represent a potentially "disruptive technology" that can bypass the telco/cable duopoly and bring broadband to areas unserved by telcos and cable companies.

Tuesday, October 02, 2007

AT&T signals end of wireline copper-cable based system outside of urban areas

AT&T appears to be moving toward a wireless future outside of urban centers where the telco is upgrading its wireline plant and deploying its hybrid fiber/copper Project Lightspeed/U-Verse equipment. AT&T is currently test deploying fixed terrestrial WiMAX broadband in parts of Alaska and 22 other regions in the lower 48 states, apparently as an alternative to making upgrades to its wireline copper cable plant or replacing the copper with fiber in order to provide broadband-based services.

This week, an AT&T executive disclosed Ma Bell plans to 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.

Those not in these areas might have to wait a long time to get U-Verse VOIP service, Ralph de la Vega, AT&T's group president, regional telecommunications and entertainment, told Investor's Business Daily. Taken in combination with AT&T's move into fixed terrestrial wireless in less densely populated parts of its service area where U-Verse isn't present, it's unlikely they'll ever be offered wireline-based VOIP. All broadband-based services will likely be delivered via fixed terrestrial wireless as the aging copper cable plant and central offices built for the era of analog, plain old telephone service (POTS) are dismantled.

Wednesday, September 26, 2007

Sen. Kerry deplores 'unacceptable" state of U.S. broadband access

"It’s almost hard to wrap your head around the fact that 7 years into this century, more Americans than not have either no Internet access at all or are still stuck on dial-up. It seems like so long ago that the buzzword was the “information super-highway,” but much of America is still bouncing down a country lane. That is just unacceptable."

WISPs endeavor to provide needed broadband "third pipe" in El Dorado County

The pathetic state of wireline broadband Internet access in El Dorado County, California has spawned locally based Wireless Internet Service Providers (WISPs) to provide a much needed "third pipe" for county residents and small businesses who have been stiff armed for years by AT&T and Comcast.

Startup Remotely Located run by Jason and Jennifer Wilson is deploying Wi-Fi based service using both directional and non-directional transmission technology. Remotely Located is serving areas deprived of wireline broadband service in the Mosquito/Swansboro Country area and has recently expanded into West Camino and your blogger's neighborhood.

Sierra Advantage emerged out of the bankruptcy earlier this year of one of El Dorado County's first ISPs, Direct Connect. According to the WISP's service area map, it covers my area. Not quite yet, according to Brett Patterson, director of sales for Shingle Springs-based Sierra Advantage. "We continue to build out our network and get closer each week to offering you service," Patterson wrote in an email yesterday. "Soon we will have additional equipment up in your area. There are some very exciting, positive changes coming for us regarding our Internet services."

My hat's off to these WISPs. Providing fixed terrestrial wireless Internet access in El Dorado County's rugged terrain where steep canyons and tall trees create obstacles for wireless signals is no easy feat.

Aside from overcoming these technological hurdles and providing reliable service at advertised throughput speeds, a key challenge as they add customers will be obtaining sufficient backhaul connections to the Internet -- wireline circuits capable of providing large amounts of bandwidth -- to accomodate the growth. Subscribers won't be pleased if a bandwidth traffic jam at the backhaul makes their speeds slow to a crawl and drag with the high latency that afflicts substandard satellite-based Internet access.

Readers who subscribe to services offered by these WISPS are invited to share their experiences and satisfaction with them by posting comments to this post.

Thursday, September 20, 2007

Telcos protest California PUC's draft build out requirements

When telcos advocated the enactment of California's Digital Infrastructure and Video Competition Act of 2006, they argued it would create a more competitive marketplace and speed the deployment of broadband-based telecommunications services to consumers.

However, judging from their recently filed comments on the California Public Utilities Commission's proposed rules implementing the statute's build out requirements, telcos could hardly be described as in a hurry to expand their systems and heartily embracing an open, competitive market.

They protest draft rules that would require franchisees to include "clearly stated build-out milestones " that "demonstrate a serious and realistic planning effort." In addition, the draft rules would require franchisees to "clearly state the constraints affecting the build-out" and "clearly delineate and explain" areas within the franchisee's service area that pose "substantially higher" costs.

The small telcos don't want to be held to the same build out requirements as the larger players like AT&T and Verizon. And the big guys don't want to provide customer data by census tract or report on how they are utilizing wireless technology to deliver broadband services.

One might think broadband providers would support regulation that actually encourages them to offer more services to greater numbers of customers. Nearly all other regulated industries desire this and typically complain regulation constrains their ability to offer new products and services to larger numbers of customers. But it's just the opposite in the perverse broadband marketplace. The providers want regulation that allows them to limit rather than expand their services and serve fewer rather than more customers. While providers may think less is more, less is truly less and explains why the United States is rapidly falling behind other developed parts of the world when it comes to broadband access and choices.

Friday, September 14, 2007

Report: AT&T to ramp up fixed terrestrial WiMAX service in 2008

Last month, AT&T announced it began deploying fixed terrestrial wireless broadband service in Alaska as part of an initiative to test the service, which utilizes WiMAX protocol, in 22 areas of the United States. Eight of those became what the telco in August termed "active commercial deployments."

Quoting an industry source, Unstrung is reporting that Ma Bell will ramp up the service in the second quarter of next year, most likely in the southern U.S. where AT&T has preexisting licenses for using the 2.3 GHz band to provide the wireless broadband service as an alternative to DSL or cable.

Unstrung's analysis is taken in combination with the Alaskan rollout last month, this move into the lower 48 suggests AT&T might use the technology to provide better broadband coverage in areas where it has less wireline infrastructure.

Wednesday, September 12, 2007

California PUC issues state franchise to Wave Broadband

The California Public Utilities Commission has issued a state broadband franchise to Seattle-based cable provider Wave Broadband. Wave Broadband joins Cox Communications as one of just two cable providers that have applied for and received a state franchise, issued under California's Digital Infrastructure and Video Competition Act of 2006.

Wave joins telcos AT&T and Verizon having received franchises from the California PUC. MIA is the state's biggest cable player, Comcast. The cable provider likely isn't all that interested in a state franchise with its limited build out requirements when local jurisdictions like El Dorado County already allow it to bypass large parts of the county, leaving consumers without access.

According to the CPUC franchise certificate issued on Sept. 7, Wave Broadband intends to provide service in the Northern California cities of Dixon, Loyalton, Portola, Rio Vista, West Sacramento and Plumas and Sierra counties. The company isn't talking when asked if it planned to serve other areas that currently are not offered broadband services by AT&T or Comcast.

FCC delays report on broadband access

For the past several years, the Federal Communications Commission each January and June has released data on the number of high speed telco and cable connections to the Internet. The most recent report was issued Jan. 31, 2007. As your blogger reported in early February, it revealed that local telephone companies failed to provide DSL in more than 20 percent of their service areas as of June 30, 2006.

The FCC report covering the last half of 2006 was due out in June. But it's been inexplicably delayed. An FCC spokesman assured me in a July 20, 2007 email that it would be released "soon" but it's still MIA nearly two months later. A likely explanation is the FCC is delaying the report's release at the behest of the telcos since it's likely to show that telcos have made little if any progress shrinking their massive broadband black holes during the last six months of 2006.

Federal appeals court rejects telco's bid to dismiss anti-trust action brought by competing ISPs

The Ninth U.S. Circuit Court of Appeals has rejected a bid by SBC Communications (now AT&T) to toss out a federal anti-trust action brought by four California Internet Service Providers (ISPs). The ISPs sued the telco claiming it jacked up wholesale prices charged competing ISPs for access to its lines in order to subject the ISPs to a "pricing squeeze" as part of a scheme to drive consumers to SBC's proprietary retail DSL services.

The federal appellate court decision affirms a U.S. district ruling that the suit could proceed as an anti-trust action under the Sherman Antitrust Act. SBC unsuccessfully argued that the action was barred by the U.S. Supreme Court's ruling in Verizon Communications, Inc. v. Law Offices of Curtis V. Trinko, LLP, 540 U.S. 398 (2004). In Trinko, the Supreme Court held that the Sherman Act doesn't apply to Verizon's failure to deal fairly with a competing ISP. A customer of one of Verizon's competitors alleged Verizon engaged in anticompetitive practices by discriminatorily delaying orders placed by customers of Verizon’s competitors that Verizon was required to fill by the federal Telecommunications Act of 1996.

The Sept. 11 ruling comes as AT&T and other telcos have requested the Federal Communications Commission to relieve them from the requirement that they continue making their lines available to competing ISPs under the 1996 Act, according to this recent post at Broadband Reports.com. The FCC is expected to act on the requests this week.

The full ruling by the Ninth Circuit in Linkline Communications et. al. v. SBC California, et. al. can be read here.

Friday, September 07, 2007

FCC needs to get it right with wireless broadband

The Federal Communications Commission has to get the wireless "third pipe" of broadband Internet access right in order to inject meaningful market competition and consumer choice into the moribund, duopolistic market it has fostered with its wireline broadband policies, writes columnist Keith Girard of AllBusiness.com in The New York Times:

The FCC has made a mess of telecommunications policy. As FCC Commissioner Michael J. Copps noted recently, the nation is getting "too little broadband at too high a price."

Thanks to the FCC, Cable TV and telephone companies dominate the broadband market. They've basically skimmed the cream off the top by focusing on densely populated, easy-to-service areas. As a result, large parts of the country are underserviced. Only 31 percent of rural households and 41 percent of African American households have broadband service compared with 70 percent of households overall that have a computer, according to a new study by the Pew Internet Project, a nonprofit group. The same holds true for small rural businesses. They are less likely to use broadband services, in part, because of cost and lack of availability, according to several government studies.

Sunday, September 02, 2007

America's growing broadband gap with Japan

In the 1980s, the United States fretted about a management gap with Japan. Japanese business management techniques such as kaizen -- continuous, systematic improvement -- and a focus on quality control fostered an inferiority complex on the part of American business leaders.

Now the U.S. is about to develop a new inferiority complex with the Japanese: it's fallen far behind Japan when it comes to broadband Internet, The Washington Post reports. "America may have invented the Internet but the Japanese are running away with it," the newspaper reports, noting that Japanese broadband service is eight to 30 times faster than in the U.S. Japan boasts the world's fastest Internet connections, delivering more data at a lower cost than anywhere else, The Post adds, citing recent studies.

Japan's speedy Internet access is helping the nation fulfill its goals of allowing more people to telecommute -- work from home -- and increasing the use of telemedicine, which allows doctors to remotely diagnose and evaluate a person's medical condition without the need for the patient to travel long distances to see a specialist.

California Gov. Arnold Schwarzenegger is interested in telemedicine and recently announced $25 million in grant funding for "expanding broadband capabilities to support telemedicine, tele-health and e-health programs."

Schwarzenegger has also formed a Broadband Task Force that is due to issue a report next month on the state of broadband access in California. What it will likely find is California, which likes to view itself as a leader in information technology and innovative public policies, is like the rest of the U.S., falling far behind Japan when it comes to broadband access, making it difficult for the governor to fulfill his goal of expanding telemedicine in the Golden State.