Friday, February 27, 2009

Telcos, cablecos have future role as middle mile and long haul IP connectivity providers

Bob Frankston has penned a thoughtful piece that encourages out of the box thinking when it comes to broadband Internet connectivity. He's dead on. We're at a transition point between yesterday's legacy single purpose, proprietary telco and cableco owned systems designed to dispense discrete services as billable events and the open architecture possibilities of the Internet that allow for customization according to need.

The two models are not compatible -- which Frankston says explains the artificial market scarcity of bandwidth delivered via the telcos (slow and costly 1970s-era T-1 lines that telcos are still selling, for example) and cablecos at a time where fiber to the end user is capable of delivering hundreds of megabits and even gigabits per second.

Instead of expecting telcos and cablecos to meet our Internet protocol-based telecommunications needs, Frankston suggests we view these entities as middle mile and long haul carriers. They would still have a critical role to play, serving locally owned and operated telecommunications entities such as municipal fiber systems and fiber cooperatives. Frankston has seen the future and I share his vision.

Thursday, February 26, 2009

Irony abounds in comments by U.S. representative, telco and cable reps on broadband stimulus funding

A highly interesting item appears in today's PC World. It reports on a telephone town hall conversation yesterday between a Tennessee resident and her Congressional representative, Representative Marsha Blackburn (R). It's an encounter to which many U.S. residents will readily relate.

The hapless constituent is stuck on dialup just one mile inside a broadband black hole event horizon. Repeated pleas to an unidentified broadband provider to roll out broadband service produced nothing and the constituent's patience has worn thin.

Blackburn responded by asserting the market would deliver if only more folks in the displeased constituent's neighborhood demanded broadband. Thus, Blackburn reportedly said, the $7.2 billion in subsidies and loan guarantees in the recently enacted federal economic stimulus legislation for broadband deployment to rural and other underserved areas are unnecessary since the market will solve the problem. That's patently incorrect as petitions by residents and small businesses to providers -- so called demand aggregation -- don't convince providers to deploy broadband infrastructure that their proprietary algorithms reject as economically unfeasible.

Ironically enough, Blackburn was disabused of her misapprehension that a competitive market exists in the natural monopoly -- and a duopoly at best -- that is wireline telecommunications service by representatives of two prominent members of the telco/cable duopoly at a panel discussion hosted by the Free State Foundation.

Thomas Tauke, executive vice president for policy at Verizon, pointed to market failure where the costs of providing service go beyond what providers like Verizon are willing to pay. Many of the areas without broadband are "very expensive to reach," PC World quoted Tauke as saying. Accordingly, Tauke added, broadband infrastructure subsidies such as provided in the stimulus legislation are entirely appropriate. The broadband funding in the stimulus measure also drew positive comment from Joseph Waz, senior vice president for external affairs at Comcast, who told the panel its inclusion is "very heartening."

That adds another layer of irony insofar as the big telcos and cablcos have gone on record elsewhere complaining the broadband funding provides little incentive for them to build out their infrastructures, arguing tax breaks would get infrastructure build out faster than grants or loan guarantees. They also object to the open access provisions attached to the stimulus funding.

No antitrust issue in ISP suit vs. AT&T, U.S. Supreme Court rules

Reuters reports the U.S. Supreme Court has ruled against several Internet Service Providers who brought an antitrust suit against AT&T in 2003 claiming the big telco's pricing policies on DSL service constituted uncompetitive market conduct.

The ISPs alleged AT&T and its predecessor, SBC Communications, maintained unreasonably high wholesale access charges to ISPs to deliberately thwart them from competing with SBC/AT&T for Digital Subscriber Line (DSL) customers as permitted under the line sharing provisions of the federal Telecommunications Reform Act of 1996. Ma Bell then lowballed prices on her own DSL offerings, making it impossible for the ISPs to compete on price, the ISP plaintiffs complained.

Tuesday, February 24, 2009

Stimulus measure's broadband funding could spell economic opportunity

NetworkWorld published a piece today examining the potential economic impact of the $7.2 billion earmarked for grants and loan guarantees to finance the construction of broadband telecommunications infrastructure.

The article discusses how broadband access may effectively stimulate entire towns and regions by supporting businesses and jobs that might not otherwise locate there. In the larger scheme, broadband has the potential to more evenly distribute economic activity and population across the United States among major metro regions and less populated areas.

Here's an excerpt:

Asked whether the stimulus plan could mean call centers such as those in Mumbai could start showing up in central Kansas, Settles said, "It depends on how fast the stimulus works, but there is pent-up demand in the U.S. for broadband. If a company wanted to expand a business, broadband could decide if they go to rural Kansas rather than Milwaukee and would be a driver to get a company to open a business in a smaller community with less overhead. Generally, it might still be cheaper to go abroad, but broadband would help companies afford to build not just call centers but IT service operations."

Opening such businesses in the U.S instead of abroad would certainly lessen "administrative hassles," he added.

Monday, February 23, 2009

Telco plans LTE for fixed premises broadband

FierceBroadbandWireless reports CenturyTel CEO Glen Post told the publicly traded telcos's quarterly conference call that it will deploy Long Term Evolution (LTE) aka 4G cellular broadband in 2010 as a platform to serve fixed premises customers in rural areas. CenturyTel serves small and mid-sized markets in 25 states, according to its Web site.

If this really occurs and isn't yet another of the vaporware technology claims common in the wireless broadband world, it could provide a superior interim fixed premises broadband pipe in broadband black holes until these areas can be wired for fiber optic cable plant.

Currently 3G cellular broadband plays that role in some areas lacking wireline delivered broadband. But it's more appropriate for mobile broadband than for fixed premises users given the tradeoffs of relatively slow throughput speeds, high latency and low bandwidth caps. Locally owned and operated fixed terrestial Wireless Internet Service Providers (WISPs), which also presently play a major role in bridging the broadband gap created by the limited technological reach of DSL and the limited service area footprints of cable companies, aren't likely to be competitive with 4G where it's deployed.

If it can deliver with good latency numbers, LTE could also offer better coverage than 3G since it will utilize 700 MHz radio spectrum that was purchased by CenturyTel Broadband Wireless and other telcos such as AT&T and Verizon in federal auctions conducted last year. The spectrum was formerly used for television signals and is noted for its robust ability to carry through rolling terrian and trees and buildings.

LTE will also potentially offer far higher thoughput -- in the range of 10-15 Mbps, according to Sidecut Reports. That's at least five times faster than what's currently available from 3G and WISPs.

Saturday, February 21, 2009

BPL an exercise in obsolescence

Broadband Over Power Lines (BPL) is a broadband last mile delivery technology that was declared all but dead in 2008. But BPL refuses to die despite a barely detectable pulse of just 256 Kbs at the low end and 1 Mbs when it's ticking along. Ten years ago that would have worked great for web browsing and email. But now it's a turkey that won't pack the bandwidth needed for fast growing applications like streaming video.

I.B.M announced in November it would pony up $9.6 million in a venture with a small company to deploy BPL via electric power cooperatives formed decades ago in areas of the U.S. skipped by private power companies.

Rather than engage in misguided and already outmoded technological ventures such as BPL, power companies and cooperatives should instead string fiber optic cable cable on their poles and towers and lease the fiber to coops, telcos and Internet Service Providers. Pacific Gas and Electric considered this idea more than a decade ago. It should dust it off and implement it and urge its industry peers to do likewise and avoid investing in BPL technology -- as PG&E wisely avoided -- that's already obsolete even before it's deployed.

Don't subsidize slow, outmoded AT&T DSL, groups urge California PUC

One of five AT&T broadband build out projects subsidized with 40 percent matching funds from the California Public Utility Commission's California Advanced Services Fund (CASF) has drawn criticism from community groups in California's North Coast area.

The groups, the Mendocino Coast Broadband Alliance, Redwood Coast Rural Action, Redwood Coast Connect and Humboldt Area Foundation protest the award of $15,200 in CASF funding to AT&T to finance the roll out of DSL technology to serve 97 homes over existing wire line facilities. The groups complain that won't deliver sufficient throughput in the affected areas including Albion, Little River, Caspar, Mendocino, Fort Bragg, Elk and Point Arena. The so-called Comptche project's DSL throughput of up to 1.5 Mbs for downloads and up to 384 Kbs for uploads is too slow, they say, urging the CPUC demand AT&T offer throughputs of 3 Mbs down and 1 Mbs up as originally specified in CASF funding guidelines adopted by the commission in 2007. Moreover, some of the groups say, a Wireless Internet Service Provider (WISP) could provide faster speeds over a shorter timeframe than AT&T's DSL project.

However in its resolution adopted Feb. 20 awarding funding for the project, the CPUC notes it "has no control over what applicants ultimately offer," and that the 3 Mbs download and 1 Mbs upload speeds are guidelines and not firm requirements. "We believe that broadband speeds below 3/1 still offer large benefits to communities that have no broadband service at all and does not hinder the possibility of upgrades by incumbents or competitors," the resolution states.

The unstated cause of the debate: AT&T's aged copper cable plant that cannot support higher throughput as well as the company's reliance on underpowered DSL technology that has very limited range over copper cable due to signal degradation.

Tuesday, February 17, 2009

Broadband provisions of U.S. economic stimulus legislation

Here are the broadband grant funding provisions of the American Recovery and Reinvestment Act of 2009 signed into law today by President Barack Obama, taken from a summary of the bill prepared by the House of Representatives:

Provisions on Broadband Infrastructure

The Conference agreement creates a new Broadband Technology Opportunities Program within the National Telecommunications and Information Administration (“NTIA”) of the Department of Commerce. The new grant program will distribute $4.7 billion to fund the deployment of broadband infrastructure in unserved and underseved areas in the country, and to help facilitate broadband use and adoption. An additional $2.5 billion in loans and grants will be administered by the Rural Utilities Service.

The Conference agreement combined portions of both the House and Senate bills. The main provisions of the NTIA program include:
  • Grant Recipient Criteria. Any entity is eligible to apply for a grant, including municipalities, public/private partnerships, and private companies, so long as the entity can comply with the grant conditions. Applicants must put forth 20% of the proposed project’s total cost, subject to a financial hardship waiver.
  • Grant recipients must agree to abide by a set of conditions, including adhering to a build out schedule, to interconnection and non-discrimination requirements as established by NTIA, and to the principles contained in the Federal Communications Commission’s Broadband Policy Statement. The Conference agreement does not require that grant recipients meet certain broadband speed thresholds, although the NTIA is expected to consider and support the highest possible broadband speeds in awarding grants.
  • National Broadband Plan. The Federal Communications Commission is required to develop a national broadband plan within one year.

Monday, February 16, 2009

NPR story on U.S. broadband access illustrates major flaw in media coverage of issue

NPR's Morning Edition has a story out this AM on the $7.2 billion set aside for grants to subsidize broadband telecommunications infrastructure that Congress sent to President Barack Obama. Unfortunately this NPR story like others in the mainstream media paint the U.S. broadband landscape with far too wide a brush and reinforce the myth that lack of broadband access is confined to rural areas.

Due to the technological limitations of Digital Subscriber Line (DSL) over copper cable offered by telcos and the limited footprints of single purpose cable company plants built decades ago solely to provide TV, broadband black holes can be found most anywhere in the United States: in urban centers, suburbs, exurbs, quasi-rural as well as rural areas.

Homes and small businesses in one part of these areas may have access to broadband while those adjacent and just one or two miles away -- and oftentimes in even closer proximity -- don't. As noted by this blog recently, the Google search phrase that brings the largest number of hits and visitors to it goes along the lines of "My neighbor can can high speed Internet access but I can't/why not?"

Wednesday, February 04, 2009

California broadband nonprofit hopes for share of federal economic stimulus dollars

The California Emerging Technology Fund (CETF), a San Francisco-based nonprofit that helps fund projects to improve broadband access in California using $60 million in seed funding provided by AT&T and Verizon as a condition of the telcos' recent M&A activity, is hoping to get additional funding from the federal economic stimulus legislation.

Expected to be finalized this month, the legislation calls for between $6 billion and $9 billion (House and Senate versions of the legislation, respectively) in grants, loans and tax credits to fund the build out of wireline and wireless broadband telecommunications infrastructure. The administration of President Barack Obama has characterized the broadband stimulus funding as a down payment toward the administration's overall goal of providing universal access to broadband throughout the U.S.

"We want California to be poised to take optimum advantage of the stimulus package," CETF President and CEO Sunne Wright McPeak said at the CETF's Sacramento Regional Broadband Roundtable hosted today by the Sacramento Area Council of Governments as well as several other local institutions. "We want this region to be well deployed."

If it receives federal stimulus funding this year, CETF's role subsidizing the deployment of broadband infrastructure could overshadow that of the California Public Utilities Commission. The CPUC's $100 million California Advanced Services Fund provides a 40 percent match to subsidize broadband infrastructure build out but has not attracted the level of interest hoped for by regulators.

The 3-hour roundtable discussion was attended by about 70 people representing a wide variety of individuals and organizations with an interest in expanding broadband access, applications and adoption.

El Dorado County was well represented by Carol Anne Ogdin representing El Dorado County Supervisor Ray Nutting, Woodrow Deloria of the El Dorado County Transportation Commission, Jason Harm of the El Dorado County Office of Education, Tom Straling of the El Dorado County IT Department and your blogger.

I was pleased at McPeak's obvious zeal to get broadband infrastructure deployed as quickly as possible to enable the various applications and associated beneficial impacts discussed at the event including reducing transportation demand through telework and online commerce -- a clear benefit in this era of constrained transportation funding and strapped county budgets -- and allowing remote medical consultations for individuals living in rural areas who lack easy access to medical providers and specialists. McPeak and her staff clearly understand a salient point raised by Ogdin: that it's far cheaper (and greener) to move bytes than bodies.

Saturday, January 31, 2009

Cisco's Chambers: Time to broadband the U.S. economy

From an op-ed piece by Cisco chief John Chambers published earlier this month in the San Jose Mercury News:

Imagine what the United States could accomplish if our broadband speeds were not just competitive, but leading-edge. Imagine what broadband could do for health care: A medical specialist in Cleveland, Ohio, could do a virtual house call via high-definition video to a homebound retiree in Henderson, Nev. We have the technology now, but we need the connectivity. Imagine applying that same technology to education and changing the very nature of the way students learn — or the way we train workers.


Our economic challenges are too dire to merely rely on Band-Aids. It's time to broadband our economy. The innovation, the productivity and the growth that is possible with a proper broadband infrastructure is nearly limitless. The time to act is now. Doing so will not only help stabilize and stimulate a recovery but create the foundation for long-term prosperity and competitiveness.

Friday, January 30, 2009

Thy neighbor's broadband

In the three years this blog has been in existence, by far the top Google search phrase that directs readers to it goes along the lines of "My neighbors can get high speed Internet/DSL/cable but I can't/why not?"

The common question ultimately reveals the hodge podge, Balkanized deployment of premises-based wire line broadband Internet access that's about as maddening as not being able to get telephone service when the folks next door can. Or them getting electricity while you're left off the grid.

The high frequency of the Google query directed to this blog also calls into question the widely repeated myth that broadband black holes can only be found deep in rural Iowa or Nebraska when in fact they turn up most anywhere in the United States.

The common Google search term also points up the technological shortcomings of DSL over copper, which is very sensitive to and degrades with distance, as well as the severely proscribed footpoints of cable deployments based on the number of dwellings per an arbitrary linear metric suitable only for neighborhoods laid out along urban gridlines.

Wednesday, January 28, 2009

AT&T slows Project Lightspeed/U-Verse deployment

AT&T will decelerate build out of its hybrid fiber/copper Project Lightspeed infrastructure that delivers the telco's bundled U-Verse offering, TelephonyOnline reports today.

The publication cites comments by AT&T executives in a conference call Tuesday discussing the company's Q4 2008 earnings and citing Lightspeed/U-Verse as a drag on profits.

Under the scaled back deployment, AT&T has decided to delay its goal of passing 30 million homes from 2010 to 2011, according to TelephonyOnline, and concentrate on the former BellSouth territory in the southeastern U.S. AT&T acquired in late 2006.

Last month, AT&T also pushed back the deployment of VDSL copper pair bonding technology to extend the severely limited range and throughput of U-Verse. The new target date is sometime this year, the second delay after a planned late 2007 deployment was scrapped.

Tuesday, January 27, 2009

Unclear on the concept

The National Cable & Telecommunications Association is creating a 22,000-square-foot main street-themed exhibit space that it says will be the centerpiece of its exhibit floor. The exhibit will demonstrate "The many ways in which high-speed broadband service has and will continue to improve the lives of Americans."

The effort, announced Tuesday, matches the centerpiece that broadband deployment has become in the new Obama administration's economic stimulus package.

It also comes as Congress is debating how to dole out over $8 billion in grants for broadband. Satellite operators are fighting for their share of the money, arguing that satellite-delivered broadband will be the only way to reach some rural enclaves.

Like those rural areas on the edge of the Arctic Circle? Talk about unclear on the concept. I think I'll launch some of those digital dirigibles and apply for funding too. And let's not leave out BPL while we're at it.

Congress should reject telco whining over broadband requirements in economic stimulus measure

Economic stimulus legislation on a congressional fast track that would allocate $6 billion (House version) and $9 billion (Senate version) for broadband telecommunications infrastructure build out to underserved areas is unsurprisingly eliciting whining from the big telcos.

Industry representatives and think tanks that front for them complain the measures' minimum connectivity speed requirements for wireline and wireless service to underserved areas as well as open access requirements would not dispose them to applying for broadband infrastructure grants, loans and loan guarantees.

What they want instead are tax breaks just as telcos received under the 1996 Communications Act that was to have brought broadband to all Americans in a decade's time. Bottom line: business as usual. Continued proprietary (and geographically limited and underpowered) DSL access over crappy, aging (depreciating from the telcos' perspective) copper cable, maintaining wireless Internet connectivity at or below the less than impressive capabilities of current deployments and continuing to tell millions of Americans to go suck a satellite or live in dial up purgatory.

Congress should reject these whiners that have led the U.S on a race to the bottom when it comes to advanced IP-based telecommunications services. The telcos propagated a broadband boondoogle with the 1996 Communications Act. Broadband access is too important to allow them to repeat the fiasco.

Maintaining open access requirements in the stimulus legislation will assist local governments and citizens by providing seed funding to form their own fiber cooperatives. That will allow them to break free of the telco/cable duopoly that has failed to provide them adequate broadband access for their current and future needs.

Monday, January 26, 2009

Tax cuts, expanded NTIA funding for broadband proposed

Provisions of economic stimulus legislation rapidly moving through Congress could be expanded to include tax cuts and tripling the amount of grants for broadband infrastructure.

Bloomberg reports today U.S. Senator Jay Rockefeller (D-West Virginia) will propose tax credits to encourage telephone, cable and wireless companies to expand broadband access. The Bloomberg item also states the Senate Appropriations Committee wants $9 billion for broadband grants administered by the National Telecommunications and Information Administration (NTIA), compared to $3 billion in the House Appropriations Committee's version of the stimulus legislation.

The broadband provisions of the economic stimulus measure will likely undergo more revisions before the bill reaches President Barack Obama, who has called for its enactment by mid February to shore up a flagging U.S. economy.

Saturday, January 24, 2009

President Obama reiterates need for broadband infrastructure in weekly radio address

President Barack Obama mentioned the expansion of broadband telecommunications infrastructure in his weekly radio address today urging swift enactment of the American Recovery and Reinvestment Act of 2009. The measure, which cleared Congressional committees this week on track for passage by mid-February, includes $6 billion in grants and loans to finance broadband build out.

Here's the relevant passage from the president's address:

Finally, we will rebuild and retrofit America to meet the demands of the 21st century. That means repairing and modernizing thousands of miles of America’s roadways and providing new mass transit options for millions of Americans. It means protecting America by securing 90 major ports and creating a better communications network for local law enforcement and public safety officials in the event of an emergency. And it means expanding broadband access to millions of Americans, so business can compete on a level-playing field, wherever they’re located.