Monday, August 31, 2020

A "free market ethos" does not apply to advanced telecom infrastructure

Online school forces America to confront the digital divide: What went wrong over the years? How did the birthplace of the internet become a nation where broadband is unavailable to large chunks of the population, keeping students from taking part fully in modern education and their parents from taking advantage of the modern economy? Big investments have been made in the internet in the U.S., but not uniformly or with an eye to expanding connectivity as far as possible. It’s not a task that private industry cares to take on, nor is it one that the public sector can solve on its own—not in a country with such a strident free-market ethos. (Emphasis added)
This is a false dichotomy. Advanced telecommunications infrastructure tends toward natural monopoly and not a robust competitive market. As much as some would like it to be, high cost barriers to entry and first mover advantage don't permit that to be the case.

Friday, August 28, 2020

Desperate for fiber connectivity amid pandemic, states grasp for constrained federal funding

The long road to expand NH broadband - NH Business Review: Federal requirements for the CARES Act — such as the requirement broadband networks are prepared to make residential connections by Dec. 15 or else not be reimbursed — were meant to expedite projects to meet immediate needs. Bordering on unrealistic, the guidelines were criticized by the Monadnock Broadband Group and others interviewed by NH Business Review for excluding efforts that were already underway or could have made planning inroads with financial assistance.  “We put an initial $50 million into the fund because it was completely unknown what the application process would yield,” said Sununu. “I think we could have done a lot more with this money, but we just didn’t have the time. That was one of the biggest drawbacks is the time constraints the federal government put on these dollars.”
States desperately need federal funding to build fiber to the premise advanced telecom infrastructure now that homes due to pandemic public health measures now serve as workplaces, classroom, medical clinics and require robust symmetric connectivity. Feeling the pain most sharply are homes lacking access to commercial fiber providers due to neighborhood redlining and monthly rates out of reach for economically stressed households.

As this article highlights, navigating the tight constraints placed available federal funding is producing frustration. CARES Act funding is designed as short term emergency funding to help state and local governments cover costs related to responding to the pandemic and not specifically purposed for longer term infrastructure projects.

Sunday, August 23, 2020

Redlined in Duanesburg, NY

Rural areas in NYS are in need of broadband amid the COVID-19 pandemic | WHEC.com: Felton has lived on Creek Road there for nearly 25 years. She never thought all these years later, and all these years of technological advances later, she still wouldn’t have broadband. Amid the pandemic, she and her husband have been working from home. Her daughter has been doing her schoolwork right alongside them. Fortunately, they can afford a hot spot, but it doesn’t always work.

She said for the past six years she has been trying to get broadband to all the town. Duanesburg has a franchise agreement with Charter Communications. “Our town franchise requires them to serve areas with 20 homes per mile, this road that I live on we have about 10 homes per mile,” said Felton. “We're not in the middle of nowhere. I'm two miles from Hannaford and I still don't have a wired connection because there's not sufficient return on investment for Charter to provide it.”
For two decades, the lack of sufficient return on investment has been identified as the cause of America's advanced telecom infrastructure deficiencies. It raises a fundamental question: If universal and affordable access are goals as many public policymakers assert, why do they continue to expect investor owned companies to fill the gaps when the cash flow isn't there? It's the Einsteinian definition of insanity. In this case, pursuing the same public policy and expecting a different result.

Saturday, August 22, 2020

Exurban growth has major implications for advanced telecom infrastructure policy, planning

Editorial: California fires’ cruel cycle of natural and human disaster - SFChronicle.com: While the population of California and most of the Bay Area grew little in 2019, and Los Angeles County lost residents for the second year running, according to the state Department of Finance, most of the fastest-growing cities and counties were on the metropolitan edges. San Joaquin and San Benito counties, both in the outer orbit of the Bay Area, were alone in the region in experiencing more than a percentage point of growth, much of it due to housing production. Excluding rebuilding to compensate for earlier wildfire losses, the cities that saw the greatest housing-related population growth were also on the outskirts of the Bay Area — including Lathrop in San Joaquin County and Rio Vista in Solano County — or within an extreme commute of Los Angeles. This continues a long-term trend. Six of the nation’s 25 fastest-growing cities over the past two decades were in California, according to one analysis of census data, and all were on the sprawling boundaries of cities and metropolises.


Big implications here for current advanced telecom infrastructure policy and planning. The reason is these areas on the edges of metro areas while nominally exurban have been regarded by telephone and cable companies as rural and thus suffer from spotty advanced telecom infrastructure.

The return on investment doesn't come fast enough under their business models to justify investment and current federal and state subsidy programs don't offer sufficient incentive to build. Cable companies remain in their confined franchise 1970s "footprints." Telephone companies allow decades old copper lines to rot on the poles instead of modernizing them to fiber to the premise, with only some customers served by limited range and throughput first generation ADSL over copper.

While frustrating to many exurbanites before the public health restrictions of the COVID-19 pandemic that has turned homes into workplaces, schools and medical clinics, deficient advanced telecom infrastructure has taken on a new degree of urgency in the exurbs.

Saturday, August 15, 2020

Why advanced telecommunications infrastructure subsidies don’t make Internet service available to all Americans – explained in five points

  1. For many decades, federal and state governments surcharged phone bills to subsidize infrastructure for voice telephone service in high cost areas. These subsidies paid to telephone companies made sense because the companies had an obligation to honor reasonable requests for service – the universal service mandate for telecommunications services under Title II of the Communications Act of 1934. But that requirement does not apply to advanced telecommunications delivered by Internet protocol because the U.S. Federal Communications Commission does not consider advanced telecommunications to be a telecommunications service but rather an optionally provided information service under Title I of the Communications Act akin to America Online and CompuServe in the early years of mass Internet access.
  2. Current federal and state subsidy programs don’t directly subsidize the construction of infrastructure in high cost areas. Instead, there exists a mishmash of programs designed to deliver various arbitrary throughput levels, known as “broadband speed.” Instead of determining where to subsidize infrastructure, federal and state governments attempt to map a moving target of advertised broadband speeds in order to determine where to direct subsidies.
  3. Without a universal service mandate, investor owned advanced telecommunications providers have little incentive to seek subsidies since they can instead direct capital investments to lower cost and more immediately profitable infrastructure deployments.
  4. Since high cost subsidies are available to various actors including non-incumbent investor owned providers, cooperatives and state and local governments, incumbent providers often oppose the award of subsidies within their nominal service territories and “footprints.” They regard these geographical areas as proprietary and other would be providers as interlopers. 
  5. The amount of available subsidy funding is too little relative to need and there is inadequate monitoring of how it's spent.

Wednesday, August 12, 2020

The "digital divide" wouldn't exist had copper phone lines been replaced with fiber

Lack of Broadband Handcuffs At-Home Schooling in Ohio: As Columbus, Ohio, students look toward a school year with largely online learning, a new report shows that more than 30% of households in some city neighborhoods don't have broadband access. The gap is not due to lack of infrastructure — internet service providers are available in even the most-impoverished areas — but the result of economic factors, technical literacy and personal choice, researchers said. Internet service is now "the fourth utility," on par with electricity, natural gas and water, said Pat Losinski, president and CEO of the Columbus Metropolitan Library. "I don't know if we've called it out that way as a community and a nation, but it really is," he said.  The Columbus library system handles about 1.6 million reservations for computer use each year, Losinski said. "We have been trying to do the best that we can to serve that need," he said. "But what's happened in the last 120 days is this issue has been laid bare in ways it hadn't been in the past."

Actually, it is due to infrastructure. And what's happened in the last 120 days in Columbus, Ohio isn't necessarily local to that metro or confined to that short time frame. Had the United States as a nation undertaken a comprehensive plan to transition its legacy copper telephone to fiber three decades ago, this problem would be non existent. Households would obtain voice, video and data using Internet protocol technology over fiber connections. 

Consequently, there wouldn't be gaps for data connections commonly referred to as the "digital divide" and blended learning  -- a combination of school and home-based education -- would be in place and able to better weather a pandemic. Moreover, had the U.S. planned this telecommunications infrastructure transition rather than allowing "broadband" to be sold as a luxury option, lower income households would have had time to become more familiar with Internet-delivered services. Particularly considering personal computers have been around for decades and have become more affordable over time.