Tuesday, June 30, 2009

Municipalities, telco coops essential players in fiber to premises deployment

Verizon issued a news release Monday pointing to a study commissioned by the Fiber to the Home Council suggesting that once the U.S. housing market begins to thaw, homebuyers will be hot for fiber. Or as another study issued last November by Google described them, "Homes with Tails."

As the only telco committed to a full fiber to the premises strategy for both brownfields and greenfields with its FiOS product, Verizon clearly has an interest in promoting the concept. The problem is Verizon like other big telcos as well as cable companies have segmented their markets such that locales where fiber would be most the desirable real estate amenity -- such as those that are home to exurban and semi-rural telecommuters and small businesses -- are least likely to see it. The only way these places can expect to get fiber to the premises in the foreseeable future is to start municipal fiber projects and fiber telecommunications cooperatives.

Both types of entities are also good candidates for some of the $7.2 billion in broadband infrastructure subsidies contained in the American Recovery and Reinvestment Act signed into law in February as well as likely follow on funding promised by the Obama administration.

Cableco's wireless rollout targets urban mobile market -- not wireline coverage gaps

Here's a CNET article on Comcast's addition of wireless "High-Speed 2go” Internet service. The rollout shows that the nation's biggest cable company sees this offering as a mobile adjunct to its existing premises oriented wireline services -- and not a means to fill in gaps where its cable network isn't fully deployed.

Sunday, June 28, 2009

Telco wireless broadband's role is mobile, not premises solution

Here's a great article that ran a couple of days ago at App-Rising putting wireless broadband into proper perspective. Namely that its primary role is to serve as a mobile form of connectivity. Technologically when it comes to delivering bandwidth, it currently cannot come close to competing with wireline and particularly fiber optic for premises service.

The article also links to recent household survey results showing that mobile broadband is viewed more as a luxury whereas premises broadband as a necessity with few willing to cut the cord but far more willing to forgo mobile broadband to save money.

Finally, the piece points up where the real inadequacies lie in the U.S. telecommunications: its wireline infrastructure. These inadequacies have themselves hampered mobile broadband services such as those offered with the iPhone that become saturated due to insufficient wireline backhaul capacity.

While the App-Rising article is written in the context of telco delivered mobile broadband, it should be mentioned that fixed terrestrial wireless broadband provided by Wireless Internet Service Providers (WISPs) plays an important role in serving premises as an interim solution. It provides connectivity to those located in unserved areas where no wireline broadband exists and will likely continue to do so until fiber is extended to these premises. But like telco mobile broadband providers, WISPs also suffer from technological and cost limitations for their wireline backhaul, making it difficult for them to offer appealing price points and a range of robust throughput tiers.

Wednesday, June 24, 2009

British broadband deployment strategy stuck in the self limiting box of DSL

When it comes to ensuring universal broadband access for its citizens, the biggest challenge facing the Brits is thinking outside of box of DSL as this Telegraph story today illustrates.

The UK government is bumbling by setting the bar way too low (prescribing a minimum download speed of 2Mbs) and basing its broadband deployment strategy on DSL over copper, a technology intended to serve only as an interim solution from the 1990s and to the middle of the current decade until fiber optic to the premises is build out. It's a vastly underpowered and arguably obsolete technology that itself is responsible for the formation of gaping broadband "black spots" as they are called in Britian. That's because DSL signals attenuate and quickly fade not far from central telephone exchanges, meaning those just a few miles away are left without service.

Our friends across the Big Pond should consult with American broadband experts like Tim Nulty, who is working to bring fiber to the premises in that part of the U.S. known -- ironically -- as New England. Nulty served as director of a publicly owned broadband system serving the city of Burlington, Vermont and now runs ValleyFiber, a nonprofit organization focused on bringing municipal fiber to nearly two dozen Vermont towns.

Monday, June 22, 2009

The underlying conflict driving muni, coop fiber

The saga of the planned City of Monticello, Minnesota municipal fiber network clearly points up the fundamental conflict between privately run advanced telecommunications providers and municipal fiber projects such as Monticello, which as this story reports successfully withstood a lawsuit by TDS Telecommunications aimed at blocking the project.

Privately held providers are primarily accountable to their investors and shareholders. In the case of costly telecommunications infrastructure requiring extensive capital expenditures that can crimp investor returns over the short term, their interests are directly at odds with those of consumers and businesses desiring more and better value services necessitating those capital expenditures.

Given these starkly conflicting agendas, it's no wonder we're seeing alternative models of constructing advanced telecom infrastructure emerge such as muni and cooperative fiber projects that are accountable to their constituents and members. These alternative models will be particularly viable in areas where existing providers have built incomplete local access networks that leave numerous broadband coverage gaps -- which describes much of the United States.

Thanks to Ron Britvich for the link to the story.

What it's like inside a real rural broadband black hole

When it comes to the shortcomings of U.S. broadband infrastructure, mainstream media tend to paint with too broad a brush by describing the issue in stark urban and rural terms as if American settlement patterns were still like those of the 1930s and 1940s.

They also inaccurately reinforce stereotypes that people in urban areas have access to broadband while those in rural areas often don't. Wrong. There are plenty of folks in the semi-rural America, the exurbs, suburbs and even some in Silicon Valley who lack wireline advanced telecommunications services due to incomplete infrastructure buildout over the last mile.

The difference is in rural areas, the broadband black holes tend to cover far larger geographical areas. Here's an excerpt from an article in USA Today that describes what it's like inside one of those truly rural broadband black holes:

"A lot of people think rural America is where the road narrows from four lanes to two lanes," says Cubley, who grew up on a farm in East Texas. "Rural America is where you drive off the gravel road to get to the farm house; it's where you have to get in a car and drive to visit your neighbors," he says. "Millions of people live that way. And they need broadband just like everybody else."