Time to relegate "broadband" to the history books

The term "broadband" is outdated and should be retired.

It came into wide use a decade and a half ago to denote a premium telecommunications service on the publicly switched telephone network (PSTN) that provided a faster, "always on" Internet connection compared to now obsolete "narrowband" dialup and ISDN service.

The Internet is now a de facto global telecommunications system providing Internet protocol-based voice and video communications in addition to early "broadband" fare of email and the World Wide Web.

Instead of broadband, we should simply refer to the Internet. The term "broadband' is out of place in the context of today's "Internet ecosystem" to borrow a phrase from the Federal Communications Commission's National Broadband Plan issued in March. (Which should be retiled the "National Internet Plan")

References to "broadband" also pose problems insofar as they spark debates over what bandwidth and speeds constitute "broadband." Its continued use also aids legacy telco and cable industry players who want to keep it around so they can incrementally charge a premium for "broader" bandwidth.

The incumbent legacy providers also like the term "broadband" because it keeps the calendar where they want it: around 1999 when the phrase meant only Web and email — and not the bandwidth intensive applications we're seeing in 2010 that their incomplete and outdated infrastructures are unable to deliver to all customers in their self proclaimed "service areas."

It also helps the incumbents conjure up (and dust off old) self serving studies purportedly showing many folks don't "adopt" broadband because they have little interest in the Web or email. Ergo, it's not critical telecommunications infrastructure should be available to all homes and businesses when in fact it should be.

It's time to say "bye" to "broadband."

Richard Florida still doesn't get it

Richard Florida apparently hasn't gotten the memo that information-based work -- performed by what Florida calls the "creative class" -- isn't bound by geography in the Internet age.

In a post on The Atlantic blog this week titled Where the Creative Class Jobs Will Be, Florida wrote as follows:

The good news is that creative class jobs will continue to grow and provide high-wage, high-skill employment for a large and significant share of the American workforce. It's important to recognize that not all of these jobs require college degrees. Though nearly three-quarters (72 percent) of college graduates go on to do this kind of work, four in 10 creative class workers do not hold college degrees, according to analysis by my colleagues at the University of Toronto's Martin Prosperity Institute. The bad news is that creative class jobs will be geographically concentrated. (Emphasis added)

Wrong. The bad news is Florida is still thinking inside the box of a pre-Internet world where creative work could only be done in office buildings in metro areas.

Suck a bigger, faster satellite!

Satellite companies have been the also-rans of Internet providers. They serve a little more than one million customers, most in rural areas that have no other options. Their services can be painfully slow and cost twice as much as high-speed broadband. But two companies, WildBlue and HughesNet, are now in a race to change all that.

Both plan to launch satellites in the next couple of years that will dwarf their predecessors in space. WildBlue’s alone will have 10 times the capacity of its three current satellites combined. Such behemoths, the companies say, will enable them, at prices similar to what they now charge, to provide Internet service at speeds many times faster than they now offer — as fast, in some cases, as fiber connections.

Further, the companies argue, satellites can provide service more easily and cheaply per subscriber than their earthbound cable and phone company competitors, particularly to the 14 million to 24 million Americans who live in areas without broadband service.

Read more of this New York Times story by clicking here. (Registration required)
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This is a crock and a travesty. Internet protocol based services via satellite will never measure up to terrestrial fiber telecom infrastructure and should never be offered anywhere outside of the polar and most remote regions of the globe.

The mere fact that satellite Internet connectivity is sold anywhere in the lower 48 United States is and should be regarded as a national embarrassment showing the rest of the world how far behind the information technology curve the nation has fallen.

Memo to HughesNet and Wildblue: sell your new and improved services to SETI (Search for Extraterrestrial Intelligence) in order to allow off world intelligent life to connect to the global Internet.

FTTH Council prematurely buries open access networks

In a recent filing with the U.S. Federal Communications Commission, the FTTH (Fiber to the Home) Council is urging the FCC avoid placing Internet protocol-based telecommunications services under common carrier requirements of the Title II of the Communications Act of 1934.

In its 87-page filing, the FTTH Council contends doing so would inject a large degree of business uncertainty into what's arguably an already tenuous for profit business model and discourage private investment in the build out of fiber networks.

The FTTH Council also worries that the FCC's placement of IP-based telecom services under Title II would lead to the FCC declaring such services a monopoly -- not a hard stretch considering that high CAPEX costs make fiber networks natural monopolies. Once it has done so, the FCC would then require private companies to share its fiber facilities as phone companies were required to do with DSL under unbundling rules until the FCC reversed that policy in 2005 by deeming DSL an information service rather than Title II telecom service. Also once the FCC formally finds wireline telecom a natural monopoly, the FTTH Council warns, price controls will be put in place, further clouding the business case for for-profit providers.

Another more disturbing part of the filing beginning at page 19 effectively asserts that if the FTTH business case can't work in the context of a regulated monopoly for investor owned FTTH providers, then it can't pencil out for open access nonprofit municipal or other community-owned fiber networks either. The FTTH Council's filing quotes Tim Nulty, former manager of the Burlington, Vermont muni fiber network, as dismissing the open access wholesale model in which network owners sell access to service providers as "a recipe for financial failure."

But in a footnote on p. 19, the FTTH Council lauds closed proprietary (non open access) muni fiber networks as playing an important role where legacy incumbent providers aren't meeting community needs. Moreover, the organization notes, open access community networks require subsidization. Well of course they do. So do investor owned networks in areas where it's difficult to make a business case for deploying fiber given the slow return on investment.

My impression is the FTTH Council is jumping the gun. It's far too early to pronounce open access fiber networks unworkable as the U.S. searches for a sustainable business model alternative to address market failure among legacy telcos and cablecos that has spawned innumerable broadband black holes across the nation.

Open access can work if people truly regard fiber infrastructure as a community asset like roads and other public infrastructure, recognize its importance to a community's economy by making it far easier for information-based businesses to operate and workers to telework at distant jobs. And most importantly, having a willingness to pay for that infrastructure in recognition of its inherent value.

Solar storm could hit GPS and satellite broadband

Another reason not to be suckered in to sucking a satellite....

Internet access is the new dial tone, but millions of Americans are disconnected

Three years ago, then-U.S. Federal Communications Commissioner Jonathan S. Adelstein called on the nation to make broadband "the dial-tone of the 21st Century."

Adelstein's characterization is correct. Today, the Internet is the telecommunications network. Those who don't have access to it are disconnected and isolated.

The Huffington Post has posted a summary of Akamai Technologies' State of the Internet" report for the first quarter of 2010 showing which states are the most offline. (Hat tip to Jason Wilson) It wouldn't surprise me if these states find it toughest to help boost the nation out of a deep economic contraction, being sidelined in an increasingly Internet-based economy.

The governors of these (and other) states should ask the Obama administration to create a Work Projects Administration-like entity to embark on a crash program to construct locally owned and operated fiber networks to serve all Americans where they live and work. Achieving this goal is a stated administration policy. Moreover, given the administration's projected multiplier effect of a project like this in terms of job creation and economic activity, it could well end up being revenue neutral when increased tax revenues are factored in.

Telecom infrastructure upgrades could aid economic recovery

PALM COAST, FLA. -- The recession is claiming yet another victim: Americans' near-constitutional right to pick up and move to a better job.

Labor mobility has nearly ground to a halt in the past two years, and policymakers are increasingly worried that the slowdown is not just a symptom of the nation's economic struggles but also a barrier to overcoming them.

With many people locked in homes by underwater mortgages, only 1.6 percent of Americans moved between states in a one-year period that ended in March 2009 -- a labor stagnation not seen in half a century. Though household mobility has gradually declined for more than two decades, the recent sharp downturn has caused economists to worry that it could harm the already struggling recovery.

"In the past, people tended to move to where the jobs are," said Assistant Treasury Secretary Alan B. Krueger, who oversees economic policy for the department. "Now it is necessary to have more of a strategy to move the jobs -- and create new jobs -- in areas where the people are."

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Bringing work to where people live also means they'll need affordable access to modern, Internet protocol based telecommunications services that will allow them to work remotely and teleconference with their employers and customers.

There's an added bonus. Constructing fiber to the premises telecom infrastructure is as Christopher Mitchell of the Institute for Local Self-Reliance pointed out in a recent radio interview is very labor intensive, which means badly needed jobs.

Residents near two state capitols struggle with outmoded telecom service

Residents living near state capitols might expect to have access to modern telecommunications services given their proximity to their states' political power centers. Not necessarily so.

As noted on this blog recently, the town of Berry located near Wisconsin's capital, Madison, is a case in point. Ditto for some folks living just four miles from the Vermont statehouse in Montpelier, according to this item from ABC News.

Like their countparts several states away in Berry, the natives are restless and their patience worn thin after much talk and promises but little action. While telecom infrastructure upgrades aren't yet certain, it's clear more talk is on tap. Vermont gubernatorial candidates are raising the issue of lack of advanced telecom infrastructure in year's campaign, the ABC News article notes.

Rural electrification better model for driving expansion of next generation networks

Give a listen to Christopher Mitchell's interview on the public affairs radio program Minnesota This Week. Mitchell is director of the Telecommunications as Commons Initiative at the Institute for Local Self-Reliance.

Near the end of the interview, Mitchell advocated government loans and loan guarantees to telecom cooperatives similar to those made by the U.S. federal Rural Electrification Administration to electric power coops starting in the 1930s. Mitchell said this would be a better policy than subsidizing investor owned telcos.

Such subsidies, Mitchell suggested, don't provide sufficient incentive to and accountability of private providers to offer quality service and network upgrades. Since community based cooperatives don't have to earn a return for investors, they can concentrate solely on serving their members.

Local governments, coops better positioned than legacy providers to meet burgeoning bandwidth demand

Check out Lance Whitney's July 21 cnet News article that illustrates the growing conflict between burgeoning bandwidth demands of Internet video content and the incremental billing business models of the legacy telco and cable providers that ration bandwidth.

Faced with the explosive demand for bandwidth, the legacy providers are responding the only way they know how given their business models: charging more money for more bandwidth via tiered service offerings and rationing bandwidth with the use of caps.

This puts the legacy providers in a bad spot since incremental bandwidth pricing and punitive caps will only tick off their customers. What's worse is the legacy providers can't upgrade their infrastructures to accommodate the jump in bandwidth demand and leave room for future growth over the foreseeable. That's because they are owned by shareholders who have been with them for decades and expect a nice safe, utility company style dividend -- money that can't be allocated to capital expenditures.

The take away here is alternative providers such as local governments and consumer telecom cooperatives who don't have to pay those fat shareholder dividends are better positioned to deploy fiber to the premises infrastructure that can easily deliver the bandwidth needed today and leave headroom for tomorrow.

FCC: 14 to 24 million Americans lack Internet access

Readers of this blog know from past posts on U.S. Federal Communications Commission reports on broadband infrastructure deployment know that it effectively ground to a halt in 2006 as legacy telco and cable companies reached the limits of their respective business models.

Four years on, the FCC has formally recognized this reality, noting in a news release today announcing its latest report under Section 706 of the Telecommunications Act of 1996 that between 14 and 24 million Americans "still lack access to broadband, and the immediate prospects for deployment to them are bleak."

As with past 706 reports, the table titled Percentage of Residential End-User Premises with Access to High-Speed Services by State shows those states where telco DSL deployments stalled because of technological and business model constraints.

Click here for the full report.

El Dorado County co-op seeks fiber-optic Internet access

Nice article in today's Sacramento Bee on the telecom consumer coop formed by your blogger...

Telecom caught at crossroads of change without a sustainable business model

IBM has issued a comprehensive outlook on the future of the telecommunications industry. To summarize, it describes an industry caught at the crossroads of change amid rapid growth of Internet protocol-based telecommunications without a sustainable business model. No surprise there since telecom as an industry -- like the cable industry -- is based on a closed, proprietary system put in place many decades ago to deliver voice or television programming over copper cable plant. It wasn't designed with the Internet in mind and thus doesn't have a cheap, easily executable upgrade path to put it in tech speak.

Moreover, neither telcos nor cable providers have a business model that will allow them to construct next generation, Internet protocol-based fiber to the premises infrastucture that can deliver multiple digital services to most all premises within their service areas. America's biggest telco, AT&T, admitted as much in a statement published in the New York Times yesterday directing customers not served by its wireline plant to its "broadband" satellite service.

Their corporate cultures naturally resist change. That's why they deploy battalions of lawyers, lobbyists, flacks and astroturf groups to defend the status quo and fight the future while preserving their conservative, risk averse business models based on the incremental billing schemes of the past -- even though these schemes are not a good fit with next generation telecom services.

Consequently, I believe we'll see a combination of the "Market Shakeout" and "Survivor Consolidation" scenarios in the IBM forecast come to pass. In fact, it could be aruged the "Market Shakeout" scenario in which "government, municipality and alternative providers extend ultra-fast broadband to gray areas, while private infrastructure investments are limited to densely populated areas" has been already playing out over the past several years.

Independent New Englanders take control of their telecom infrastructure

Last year, 22 central Vermont towns took charge of their telecom infrastructure by forming a public/private partnership to deploy 1,400 miles of aerial fiber-optic lines to provide high-speed Internet access, phone and video.

True to their fiercely independent reputation, more New Englanders in a neighboring state are doing likewise. Forty seven Western Massachusetts towns plan to form a non-profit to plan and build a fiber optic network to serve a part of the U.S. that has been described as a "broadband ghetto." A key driver is a desire to provide an economic boost to the region.

Here's an excerpt from the Berkshire (Massachusetts) Eagle story:

"This wasn't a hard sell," noted David Greenberg, chairman of the WiredWest steering committee. "It's pretty much a no-brainer -- economic development is the driving force. Without this major initiative, Western Mass is going to be sinking fast."

Once the non-profit has been formed, financing options would have to be identified, and preliminary design and cost estimate work would start.

None of the cost of the project would be borne by the towns, Webb said.

Ongoing maintenance cost and debt service payments would come from money paid to the agency by the service providers, added Andrew Michael Cohill, president of Design Nine, a consultancy hired to help WiredWest through the next phase of development.

"This is a jobs creation and a business attraction project," Cohill said. "And the highest proportion of home-based businesses in the state are in Western Mass."

DSL reaches end of line as interim pre-fiber to the premises technology

Digital Subscriber Line (DSL) was deployed by telcos starting in the late 1990s as an interim technology to bring Internet Protocol-based telecommunications services to customer premises before fiber optic connections could be brought to them.

Now DSL faces a crisis that dramatically shortens the days it can play this role. While DSL allows telcos to use existing copper plant designed for Plain Old Telephone Service (POTS), that copper plant is aged and deteriorating quickly. DSL tends to work best over newer, more pristine copper. But there's not much of that (if any) being deployed these days. Meanwhile, DSL customers complain about connections that run slower than advertised or are prone to outages as DSL signals struggle across ancient pairs of twisted copper.

And since about 2008 and amid the current economic downturn, telcos have pared back their DSL rollouts. Verizon concentrated on fiber to the premises via its FiOS product offering, prompting customer complaints it was neglecting its copper plant and repairing it with bubble gum and duct tape.

Here's the crisis: Now that DSL has served its role as an interim IP solution on the road to fiber to the premises, the United States is not prepared to make the transition to fiber. Stunningly, this gap in the technology transition isn't addressed in the Federal Communications Commission's National Broadband Plan issued this past spring. Nor is there any indication the nation's two largest telcos are seriously addressing it. Verizon recently halted build out of its FiOS fiber plant. AT&T opted for a hybrid model of fiber to the node and copper to the premise for its U-Verse product. But the VDSL transmission technology that powers U-Verse suffers from far greater distance limitations than previous generations of DSL and greatly limits U-Verse's service footprint.

It will fall to smaller, locally owned and operated telcos, local governments and telecom cooperatives to pick up where DSL left off (or in many cases, left out for those not serviceable by DSL). The National Broadband Plan should recognize that DSL over copper is dead or dying and support efforts by these entities to deploy fiber to the premises with technical assistance grants and infrastructure construction grants and low cost loans.

Cruel irony of incomplete telecom infrastructure plays near Wisconsin state capital

One of the cruelest ironies of America's incomplete telecommunications infrastructure is playing out not far from Madison, the capital of Wisconsin. The town of Berry, population 1,124, isn't large enough to attract investor owned providers. But at the same time, the incumbent provider, TDS Telecommunications, claims the federal government declined its request for subsidies for infrastructure improvements through funding earmarked for this purpose in the American Recovery and Reinvestment Act of 2009 because the town -- located just 20 miles from the capital -- isn't considered underserved, according to TDS Telecommunications.

The Milwaukee Journal Sentinel reports Berry is has filed a complaint with the Wisconsin Public Utilities Commission saying TDS Telecommunications is failing to provide required service to the community. Community residents contend the poor level of service is making it difficult to work remotely from home and is making their properties less marketable.

The good people of Berry and their town leaders would be well advised to take matters into their own hands and begin working on a Plan B that could get them improved service faster than their PUC complaint, which could end up in the courts and take years to resolve even if they prevail. They should begin planning today to build publicly (or if that's not feasible cooperatively) owned fiber to the premises infrastructure.

On death bed, aged copper POTS plant dials 911

In a late December filing with the U.S. Federal Communications Commission, AT&T pronounced its residential wireline segment in a "death spiral."

While the big telco was figuratively referring to the business prospects of the segment, the aged POTS copper cable plant is literally dying in parts of California and calling the paramedics.

Old lines no longer in active service are generating electronic farts that produce phantom 911 calls according to this Capitol Weekly article that reports on efforts in the California Legislature to fix to the problem. (Good luck with that).