Guiding principles for U.S. broadband infrastructure economic stimulus

As Congressional leaders and the incoming administration of U.S. President-elect Barack Obama mull economic stimulus legislation including a portion of which is expected to be devoted to telecommunications infrastructure to boost broadband Internet access, I offer these guiding principles:

1. The focus should be on the so-called "last mile" or local access network portion of the system. There's a broad consensus that the lack of adequate broadband access in the United States is due to technological shortcomings on this segment of the telecommunications infrastructure, its weakest link. The overall goal should be full build out of this currently incomplete but vital infrastructure to serve all residents and businesses.

2. The "copper wall" that comprises the last mile telecommunications infrastructure is the primary barrier to wider broadband Internet access. It has been obsolete for about a decade and will become increasingly so as demand for broadband access and more bandwidth intensive content like video grows. The copper wall should be torn down and replaced with fiber optic cable, either aerial or buried depending on local construction cost factors and neighborhood preferences. Calls by large telcos for funding for DSL over copper should be rejected. Funding for such projects would keep the U.S. lagging behind other developed nations on broadband telecommunications technology and constitute an economic bailout to build increasingly obsolete technology rather than a true stimulus.

3. The last mile is the most local element of the nation's telecommunications infrastructure. Accordingly, stimulus should favor local entities to replace copper with fiber such as locally owned private companies, local governments and fiber cooperatives, the latter aided by incentives to encourage homeowner-owned fiber over the last mile.

The 12 year period following the enactment of the 1996 Telecommunications Reform Act has shown providing tax breaks and other incentives to large publicly traded telcos has not resulted in adequate capital expenditure on infrastructure to serve the nation's future telecommunications needs or the selection of broadband technology best suited to do so.

As for private providers, Congress and the Obama administration should note that even generous subsidies to incumbent telcos to build out broadband infrastructure may prove indequate as seen from their less than enthusiastic response to a California Public Utilities Commission program that subsidizes broadband deployments in unserved and underserved areas with a surcharge on intrastate voice long distance calls.

The investment cycle of these companies is apparently too short to earn a return on broadband infrastructure investment even at the 40 percent funding level provided by the program -- and even for arguably obsolete DSL equipment proposed in the handful of projects approved by the CPUC in 2008. Accordingly, broadband infrastructure stimulus funding directed to community-based cooperatives, nonprofits and local governments would likely produce the most rapid deployments.

Media reform group recommends $44 billion broadband "down payment"

Free Press, a nonprofit group that advocates "diverse and independent media ownership, strong public media and universal access to communications," has issued a paper calling on the Obama administration and Congress to make a $44 billion "down payment" investment in U.S. broadband telecommunications infrastructure as part of the incoming administration's planned economic stimulus package.

Free Press plan recommends the bulk of the $44 billion be used to fund grants and interest free bonds to private sector providers as well as municipalities and nonprofits fund deployment of wireline and wireless broadband to underserved areas of the U.S. capable of providing minimum 5 Mbps symmetrical service with priority
given to projects that can deliver speeds in excess of 50 Mbps. The funding would be paid out over three years.

Free Press properly raises the concern that the funds could end up becoming a slush fund and like the Universal Service Fund has for voice telephone service could be used to fund broadband infrastructure in areas that already have a range of broadband services.

"Congress must not simply write blank checks to industry," the organization states in an executive summary of the report. "To maximize the effectiveness of scarce taxpayer resources, oversight and accountability measures must be established." Free Press suggests these measures include strict build-out schedules and affordability and capacity requirements, including minimum rather than "up to" throughput capacities.

"We offer these proposals as a starting point — not the bottom line," the group states. "Our hope is to expand the public debate and the deliberative process on broadband stimulus proposals to include a wide variety of ideas that have been put forward or are coming soon. Though we strongly believe that principles of accountability, future-proof quality, and public service priorities must guide any final legislation, this set of ideas should serve as a foundation for policymakers and the public."

Another sign of the coming end of AT&T's U-Verse

In late September, this blog predicted AT&T will abandon its Project Lightspeed/U-Verse deployment sometime in the first half of 2010 as part of a general retreat from the wireline-based residential/home office market segment.

Another sign of the coming end of the U-Verse universe emerged this week when AT&T pushed back -- again -- the rollout of VDSL copper pair bonding technology to extend the range and throughput of its bundled IP-based U-Verse product. The new target date is sometime next year, the second delay after a planned late 2007 deployment was pushed back a year.

The obstacle is the same one that has plagued AT&T 's ADSL service: not enough good, clean copper in the telco's last mile cable plant, much of it put in place decades ago to support POTS (Plain Old Telephone Service) and never expected to support advanced digital services like ADSL let alone U-Verse. Telephony Online explains:

Perhaps a more pressing limitation, however, is the simple requirement for extra pairs of existing copper, which are not in plentiful supply in AT&T’s network outside the territory of the former BellSouth, where extra pairs were deployed extensively in the 1990s to accomodate dialup and fax services.

Sacramento Bee: More than third of $500 billion federal economic stimulus package earmarked for infrastructure investment -- including broadband

The Sacramento Bee reports today that infrastructure investment will comprise more than one third of a $500 billion economic stimulus measure being drafted into legislation for approval by the Obama administration when it takes over Jan. 20.

The infrastructure investment is expected to encompass expanding broadband Internet access and creating "digital highways" for the 21st century economy, the newspaper reports quoting unnamed Democratic lawmakers and aides.

In a radio address one week ago, President-elect Obama pledged to renew U.S. broadband infrastructure, declaring it's "unacceptable that the United States ranks 15th in the world in broadband adoption."

Sacramento Bee: Internet access still a wish for many in rural areas

The Sacramento Bee is out with a story today that's likely to be familiar to folks all over the United States and not just in the Bee's Northern California circulation area. Your blogger is featured. Click here for the story. As for my recommendations re this issue to the incoming Obama administration, click here.

The difficulty getting good solid broadband Internet access isn't by definition a rural issue given that U.S. residential development isn't confined to only urban and rural areas. For much of Northern California, it's far more "granular" as demographers would say when the exurbs and quasi-rural areas are taken into account. Most of the Sacramento Bee's circulation area is considered part of the Sacramento metropolitan area.

It's also worth noting that some of those who have posted comments on the Bee's Web site at the online version of the story are located relatively close in, including one from Silicon Valley. Broadband black holes like their physical counterparts in space can be found anywhere. See also Silicon Valley’s shameful secret: lousy broadband at MuniWireless.

BTW, the article didn't include the name of my WISP (Wireless Internet Service Provider). For you El Dorado County and Amador County residents looking for service, it's Remotely Located.

White paper calls on next president to form National Broadband Strategy Commission

When it comes to the proliferation of robust broadband access, the United States has relied too heavily on the private sector and has gotten less than impressive results, asserts the Benton Foundation in a white paper calling for increased public involvement by the federal government.

The paper urges the incoming administration to create a National Broadband Strategy Commission composed of members from the public, private, academic, nonprofit, and other sectors to produce "an ambitious, yet achievable, comprehensive National Broadband Strategy to deploy robust, affordable broadband to every household in America," by Jan. 1, 2010.

The commission should lay out a "roadmap and timetable" to provide all U.S. households access to "robust and affordable broadband" by the end of 2010 and "affordable access to modernized broadband networks that are as robust as those of any other nation" by the end of 2015, the foundation advises.

The foundation's recommendations are likely to be well received by President-elect Barack Obama, who said in an address last weekend that it's unacceptable that the United States ranks 15th in the world in broadband adoption.