Wednesday, May 30, 2018

Public policy likely to shift to regard IP-based advanced telecommunications as a utility, aligning with public expectations

Internet Service Providers have historically regarded their “broadband” offerings as luxury upgrades to basic narrowband dialup service introduced in the early 1990s. Consequently, they upgraded their “last mile” delivery infrastructures to support a range of Internet protocol supported services such as high quality data, video, voice only in select areas where they believed a sufficient number of households would opt for their high end offerings. The working assumption was significantly fewer than half would do so. Hence to hedge their risk, ISPs favored areas with the highest density single family housing and multiple dwelling units (MDUs) to increase the likelihood their investment in upgraded infrastructure would produce a decent return over a relatively short duration in order to satisfy their investors.

Nearly three decades later, ISPs continue to follow this deployment strategy at the same time IP-based advanced telecommunications is increasingly seen as a basic utility service. In the United States, current regulatory policy is aligned with the ISPs “broadband” service-as-luxury business models. ISPs are free of universal service obligations like those that governed voice telephone service of the pre-Internet era, predicated on the policy principle that in a natural monopoly, market forces cannot assure all households requesting service will have their requests honored. That’s consistent with the current public policy that regards advanced telecommunications as luxury and not basic utility service. Why require ISPs to provide service to all requesting it when after all, it’s a luxury? Similarly as a luxury, regulating what ISPs can charge isn’t appropriate. Let them charge what the market will bear. (It will bear quite a lot for a service that consumers see less as a luxury than a basic service.)

The tension between the basic versus luxury service paradigm has been building in recent years and will soon reach a breaking point. As constituent complaints of infrastructure deficits grow more strident, policymakers of every stripe are increasingly describing advanced telecommunications as an essential utility like electric power and water service. Sooner rather than later, public policy will come into alignment with this view. Concurrently, expect a shift away from subsidizing investor-owned ISPs to build the necessary infrastructure to a publicly-led effort. It will be necessary in order to build rapidly enough to cover the persistent infrastructure gaps and to gain a greater degree of control and accountability than has existed in limited subsidy programs for advanced telecommunications infrastructure.

Thursday, May 10, 2018

Schumer: Broadband is a Utility That May Require Price Caps | DSLReports, ISP Information

Schumer: Broadband is a Utility That May Require Price Caps | DSLReports, ISP Information: Senate Democratic leader Chuck Schumer uttered some words this week that likely terrified lobbyists and executives for AT&T, Verizon and Comcast. During his floor argument for a Congressional Review Act resolution that would restore net neutrality, Schumer stated that he believes that broadband should be viewed as an essential utility, and that we may need to eventually explore price caps to prevent monopolies from over-charging for services thanks to limited competition.



Schumer's right. And when it's an essential service, the potential for abusive price gouging is enormous.

Democrats and Republicans alike have traditionally avoided price caps on broadband service, in large part because deep-pocketed campaign contributors in the telecom sector have viciously opposed the idea for obvious reasons.  Even when former FCC boss Tom Wheeler reclassified ISPs as common carriers under Title II of the Telecom act he was careful to "forbear" from applying rate regulation onto ISPs.

But Schumer appeared to re-open the conversation of price caps on an uncompetitive broadband market during discussions about net neutrality, even though the likelihood of him actually following through with that isn't particularly likely given historical precedent. "You know, people say, well, let a private company do whatever it wants, let them charge whatever they want," Schumer argued. "But in certain goods which are essential we don't do that. Utilities, highways. The same thing now applies to the internet. It's a necessity and we have to have protections for average folks, for small businesses, for working families." 


Spot on. It's time to end the delusion that a utility market can be a competitive market. After all, how many electric, water and natural gas companies are competing for customers?

Monday, May 07, 2018

Jonathan Chambers on overcoming U.S. telecom infrastructure deficiencies

Overbuilding, aka Competition, is the American Way – Conexon

The following is a non-comprehensive list of rural broadband overbuilders that have announced over the past two years plans to build rural networks:
  1. AT&T. Announced Project AirGig to send data over powerlines.
  2. Google. Announced Project Loon to use balloons traveling at the edge of space to bring internet access to rural areas.
  3. Facebook. Announced conducted tests to use drones to deliver rural broadband.
  4. Microsoft. Announced trials to use TV whitespaces for rural broadband.
  5. SpaceX/OneWeb. Announced plans to deploy thousands of low-earth orbiting satellites to deliver internet access to rural areas.
  6. New T-Mobile. Announced its intention of 5G for all, extending 5G to rural areas.
  7. Rural Electric Cooperatives. Dozens of fiber-to-the-home networks under construction.

    Which of these initiatives should the government favor?

Only No. 7. It's the only proven technology with headroom to accommodate bandwidth demand that's doubling every few years. And because federal funding of utility cooperatives has a successful record of constructing needed infrastructure in areas not sufficiently profitable for investor-owned providers.

If your answer is the government should not favor any one company or technology, then perhaps you also agree that the government shouldn’t favor telephone companies with their copper networks.
I would agree with the second part of the question. The existing Connect America Fund is regressive and wasteful in that it allows funding of legacy copper telecommunications networks. It's main purpose is to preserve the service area hegemony of legacy telephone companies, not improve infrastructure.

As a small first step, I propose that anywhere one of the overbuilders has already overbuilt a telephone company’s network without any public funding, the government should cease its funding in that area.

Yes, if overbuilt with fiber to the premise, option No. 7 above.


To make the government policy easy to execute, I propose that where 100% of the households in a census block have access to Gigabit service by a company that is not receiving a subsidy in that area, then the government shouldn’t fund any company in that area. That simple policy change would save the public hundreds of millions of dollars,
money that could be used where it is needed.
Let's dispense with the term "Gigabit service." Keep it simple. Fiber to the premise.

 As a second small step, I propose that all future funding follow individual consumer decisions. The telephone companies can continue to get their legacy support, except where a household chooses another carrier with a minimum of 100 Mbps service. In that case, the overbuilder should receive support that is equal to the funding being provided on a per household basis to the telephone company. Such a program should be limited in time, no more than a decade, in order to encourage overbuilders to move quickly and incumbents to improve their networks.

Again, keep it simple. Fiber to the premise infrastructure. That's the real network improvement. Don't fall into the incumbent created trap of focusing on "broadband speed."

Friday, April 13, 2018

U.S. doesn’t have a definitive “rural broadband” problem; it’s all about service area “footprints” and redlining

In the first part of the 20th century, U.S. policymakers appropriated funding to cooperatives and local governments to bring electrical and telephone service to rural America. As the century got underway, these utilities were offered only in cities – where investor-owned providers deemed them sufficiently profitable to build the necessary distribution infrastructure.

Many similarly describe the nation’s advanced telecommunications infrastructure deficiencies as a rural issue as it was for these utilities. It’s not that simple. True, the deficits tend to be greater in rural areas. But it’s not purely a matter of rural geography as it was many decades ago. Back then, entire rural regions lacked electric power and telephone infrastructure.

The situation today is different and more nuanced. Legacy telephone and cable companies first began offering always on “broadband” services using existing infrastructure starting in the late 1990s and early 2000s. It was offered not as a general telecommunications service, but as a premium “high speed” add on service in highly localized “footprints” in urban, suburban, exurban and rural areas compatible with their business models. Those models generally require capital build costs to be recovered in five years or less.

These highly granular "footprints" and the redlined areas outside of them -- passed over due to long durations to ROI and insufficient profit potential relative to the cost of building out infrastructure – cannot be compared to the large rural regions that lacked electrical and telephone service in the early 20th century. Consequently, building out advanced telecommunications infrastructure in the 21st century cannot be undertaken with a 1920s or 1930s perspective, framing it simply as a “rural broadband” issue.

Hence, the inability of “rural broadband” subsidy programs to close the gaps. Rural electrification and telephone subsidy programs were the right approach for their time. But that context does not easily translate to the complexities of modern advanced telecommunications infrastructure. Other factors beyond rurality come into play such as the number of occupied premises per mile of landline infrastructure and average income levels. The former trumps the latter as many high income homeowners in exurban areas without access to landline service can attest.

Wednesday, March 28, 2018

Legacy incumbent phone companies propaganda canard: Describing a duopoly as "intensely competitive"

Broadband Deployment & Competition Growing: Dedicated Federal Funding Needed to Close Digital Divide | USTelecom: U.S. Broadband Deployment Is Intensely Competitive. Our analysis also examines broadband deployment from the perspective of competition, which is not a focal area for the FCC’s legislatively mandated deployment analysis. U.S. providers have been deploying broadband infrastructure using a range of technologies for more than two decades. As a result, basic underlying competitive infrastructure from multiple providers is available in the vast majority of the country. On top of this foundational infrastructure, broadband providers invest tens of billions of dollars annually to upgrade networks with enhanced technologies, driving a competitive process of ever-expanding network capabilities The data indicate that competitive deployment is strong and growing, even at higher speeds. As of year-end 2016, 97 percent of Americans had at least one wired broadband network platform available to them and 86 percent had at least two wired options. Competitive availability – defined narrowly as at least two wired providers – at 25 megabits per second (mbps) download (DL) and 3 mbps upload (UL) was 50 percent at year-end 2016, up from 31 percent at year-end 2014 and 25 percent at year-end 2012. (Emphasis added).

Claiming that having a choice among two sellers constitutes an "intensely competitive market" is ludicrous. But that assertion is not to be taken literally on its face. The true intent of this propaganda from legacy incumbent telephone companies is to drive a perception that the line delivering telecommunications service to customer premises is somehow fundamentally different from the line that delivered voice telephone service decades before. True, advanced digital telecommunications can deliver data and video as well as voice. But that capability does not fundamentally alter the fact that a single line of fiber can deliver them all just as a copper one did for voice as well as optional custom calling services that came later.

The real goal of this cynical propaganda is to deceive public policymakers into thinking America's telecommunications infrastructure deficiencies can be solved by market forces. That may be true in a competitive market defined as one with many sellers and buyers with relatively equal access to quality and costs. It's certainly not the case for telecommunications infrastructure. Moreover, if market forces truly operated in telecommunications infrastructure, they would drive down deployment costs, making it more widely available on favorable terms to the millions of customers who use it and eliminate persistent infrastructure deficits.

Thursday, March 22, 2018

ACA Summit: Pai: Open Internet Order Was 'Galling Regulatory Onslaught’ | Multichannel

ACA Summit: Pai: Open Internet Order Was 'Galling Regulatory Onslaught’ | Multichannel: U.S. Federal Communications Commission Chairman Ajit Pai praised smaller cable operators for broadband deployment and as a competitive force, and renewed his attacks on edge providers in the network neutrality rule debate. Pai took aim at edge providers he said had pushed Title II on ISPs large and small. Those edge providers are an increasingly familiar target in Washington in conversations about power over internet content.

"Silicon Valley tech giants with market caps in the hundreds of billions of dollars demanded that the FCC regulate small companies like yours more heavily than they were!," he said. "That’s right... [T]hey claimed that small broadband providers like Spencer Municipal Utilities and Laurens Municipal Utilities were anticompetitive monopolists who posed a greater threat to a free and open Internet than companies like Google, Facebook, and Twitter."

The thing is Mr. Chairman, telecommunications infrastructure is a natural monopoly. It doesn't matter whether it's owned by big players like Charter and AT&T or small cable companies. It thus requires a regulatory scheme predicated on that monopolistic reality. The FCC's 2015 Open Internet rulemaking does so in treating it as a common carrier utility as basic telephone service was in the pre-Internet era under Title II of the Communications Act.

Wednesday, March 14, 2018

U.S. can't solve its telecom infrastructure deficiencies until it accurately defines the problem

Senate Kicks Off Series of Infrastructure Hearings With Focus on Broadband | Broadcasting & Cable: The Senate Commerce Committee kicked off a series of infrastructure hearings Tuesday with one focused on broadband, including a big focus on collecting accurate date about where broadband is, and more importantly, isn't. Sen. Roger Wicker (R-Miss.) presided, saying he was greatly encouraged by the President's support for programs to increase broadband infrastructure in rural areas. While the President said getting broadband to farmers was a priority, he didn't actually earmark any funds for broadband in his infrastructure plan, though he did say that $50 million would be going to rural infrastructure, with states free to use all or part of that for broadband. Congress is currently weighing the best way to deploy that service. Democrats like to factor cost and underserved communities in the equation, while Republicans -- and ISPs -- want the money targeted to the unserved, rather than overbuilding existing private investment with public money.

The adage that a problem cannot be solved until it's properly defined certainly applies here. America doesn't have a problem of communities being "underserved" by advanced telecommunications. The real problem is that it has failed to put in place policy and planning over recent decades to support the timely modernization of legacy metallic telephone and cable company infrastructure designed to support analog voice telephone service and cable TV to digital fiber optic infrastructure connecting all the nation's homes, businesses and institutions for the Internet era.

It's not accurate to describe the problem as one of entire "underserved communities." The real issue is existing public policy that does not support universal service but rather the redlining of discrete neighborhoods and even parts of roads and streets by landline ISPs in both rural and non-rural areas of the nation.

Tuesday, March 13, 2018

FCC Chair Pai falsely characterizes satellite Internet as innovative telecom technology

REMARKS OF FCC CHAIRMAN AJIT PAI
AT THE SATELLITE INDUSTRY ASSOCIATION’S
21ST ANNUAL LEADERSHIP DINNER
WASHINGTON, DC
MARCH 12, 2018


Next-generation satellites are bringing new competition to the broadband marketplace and new opportunities for rural Americans who have had no access to high-speed Internet access for far too long. That’s why the FCC under my leadership has moved quickly to give a green light to satellite innovators.

Here, U.S. Federal Communications Commission Chairman Ajit Pai falsely characterizes satellite delivered Internet connectivity as innovative. It is not. It's been around since the 1990s as a forced option for Americans who needed better than glacial dialup Internet access over legacy copper telephone lines but weren't offered DSL or later by cable companies.


We’ve also made satellite broadband providers eligible for our upcoming Connect America Fund Phase II reverse auction, which will provide up to $2 billion over ten years to expand broadband deployment in rural America. To be sure, I understand that the satellite industry disagreed with some of the decisions that the FCC made in developing rules for the reverse auction. We are forging new ground with this first-of-its-kind auction, and in doing so we had to make some hard choices. But, I nonetheless hope that satellite companies will study this opportunity closely and choose to participate in the reverse auction. 

This is an incredible waste of subsidy funding. With satellite, the FCC is subsidizing a substandard and kludgy form of connectivity subject to high latency and bandwidth usage caps. Subsidies should instead go to deploying fiber to the premise connections that offer far superior connectivity and aren't as subject to obsolescence.

Monday, March 12, 2018

U.S."bandwidth problem" direct consequence of massive policy failure

The moving target: The amount of bandwidth required to make people happy increases each year as the benefits of broadband increase. What looked like a good technical solution a few years ago may not look like one today. That means any true solution must be future proof. Providers in the United States have made great strides toward modernizing their network infrastructure, and they continue to do so. But truly solving the bandwidth problem will require a national commitment to ensuring a world-class infrastructure. 

So writes Masha Zager, editor in chief of Broadband Communities magazine in her column appearing in the the January-February 2018 issue. Zager's column is titled The Bandwidth Problem. The origins of that problem stem from a massive policy failure dating back to the early 1990s. Public and regulatory policy regarded advanced digital telecommunications as a luxury add on to legacy telephone and cable TV services.

That perspective badly hobbled the necessary modernization of America's metallic cable infrastructure designed for 20th century analog telephone and cable TV service to fiber optic to the premise infrastructure for advanced digital telecommunications in the 21st -- the world class infrastructure referred to by Zager. It also established a mindset of bandwidth poverty instead of bandwidth abundance.

Consequently, a generation later the nation is limping along, trapped in a continuous, frustrating cycle of infrastructure failing to keep up with burgeoning bandwidth demand and the embarrassment of Americans still forced to use dialup and satellite services. Also absent is the national commitment that Zager calls for to address the problem. That commitment should be to solve it once and for all with a declaration of a war on bandwidth poverty and an aggressive national initiative to fast track construction of a fully fibered telecommunications network reaching every American doorstep.

Saturday, March 03, 2018

Big ISPs once again at odds with local governments over universal service demands

FCC says small cells will close the digital divide. Most say they won't | Center for Public Integrity: The FCC’s claim doesn’t convince officials in Lincoln, Nebraska, which experienced the same reluctance as Montgomery County did by wireless companies willing to deploy small cells to rural areas, said David Young, manager of fiber infrastructure and rights of way for the city. In 2015, when Lincoln officials were negotiating with Verizon Communications Inc. over how much the city would charge the company to attach small cells to municipal property, the city said it would charge the carrier an annual $95 fee — if the carriers would commit to deploying broadband in rural areas in Nebraska. Over the next two years, Lincoln offered the same deal to other carriers and builders. Young said the companies said they couldn’t commit to anything. So, Lincoln went ahead with an agreement that have the companies paying $1,995 a year to attach small cells to city poles, more than 20 times as much. If Pai is serious about 5G closing the digital divide, Young said, “then I’ll make that deal: You cannot deploy any small cells in an urban environment until all the rural markets are covered. Until we can make that deal, I'm calling foul” on the assertion 5G will help close the digital divide.

The deal here is the essentially the same one local governments proffered to cable companies that wanted a franchise. Serve all premises within our jurisdiction or no deal. No cherry picking and neighborhood redlining. Cable companies didn't want to have to meet universal service demands in franchise negotiations and went over their heads to state governments in the mid 2000s and lobbied them to preempt the localities and take sole authority over so-called "video franchises." That preempted local government leverage.

Now local governments are pressing big telcos for universal service such as Lincoln is here. The telcos don't like the demands for universal service and are once again seeking preemptive relief from federal and state governments. Large telephone and cable companies also successfully lobbied the U.S. Federal Communications Commission to scuttle its 2015 Open Internet rulemaking classifying Internet service providers as common carrier telecommunications utilities, subjecting them to universal service and anti-redlining requirements.

Playing the preemption card again to avoid universal service obligations and continuing to leave many homes, schools and small businesses without connecting infrastructure to advanced telecommunications services will likely backfire on big telcos (and cablecos looking to get into mobile wireless services). Angry voters who have gone more than a decade with limited or no service options are increasingly likely hold elected policymakers who side with them in this fight accountable at the polls.

Tuesday, February 27, 2018

Google Fiber reconnoiters, seeks 10x advantage over incumbents with fiber deployment

Ruth Porat on Google Fiber pause: At the Morgan Stanley Technology Conference, where Porat was speaking, an analyst asked about Fiber's change in strategy and the company's new milestones. Porat said that Fiber's rollout has been paused until the company finds a way to make the service 10 times better. "As we were looking at our rollouts going back to 2015, 2016, our view was that we had not done enough," Porat said. She said that Fiber hadn't achieved its "10x moment," which is Google-speak for getting a 10-fold improvement over existing technology.
It's been a tough couple of years for Fiber. Launched in 2010 with the promise of bringing fast and affordable internet service to municipalities across the country, the initiative has endured cost-cutting measures, layoffs and two CEO resignations since becoming part of the Alphabet unit Access. Porat said that Alphabet was holding off on pushing Fiber into new markets until it could find a better way to "bring technology to bear in a meaningful way." She said that the company won't start "accelerating the rollout" again until it can prove that it has a valuable new deployment and delivery method.

Google Fiber faltered because it offered no overwhelming technological, cost or marketing advantage over legacy incumbent telephone and cable companies. AT&T even mocked it as a bumbling rookie as it paused fiber infrastructure deployment in several U.S. metro areas last year. Now it's reconnoitering until it can find one.

Last October, Phil Dampier of Stop the Cap! penned this post mortem on Google Fiber's ill fated initial foray into fiber to the premise (FTTP). To achieve that 10x deployment advantage, Google Fiber will have to develop an innovative FTTP deployment methodology that is far less labor intensive given labor accounts for the vast majority of fiber deployment costs. And one that doesn't involve the ponderous mass digging up of streets and front yards to bury fiber conduit.

As former Google advisor and co-founder Larry Page put it in Dampier's blog post, "There’s no flying-saucer shit in laying fiber." But it will have to find some (and maybe enlist the help of some of those flying saucers) in order to achieve the radical workaround it needs to rocket past slow moving incumbents as well as new entrants hobbled by high construction costs.

Barring extraterrestrial technological assistance, Google Fiber might look at more conventional albeit cutting edge technology to reduce the labor cost of hanging fiber on utility poles such as employing UAVs to lift fiber spans between poles as installers make the connections and splices.

Monday, February 26, 2018

Google, Netflix, YouTube, Facebook responsible for funding advanced telecom infrastructure, telco asserts

As net neutrality repeal nears, WV providers say internet won't change | Business | wvgazettemail.com: Frontier, West Virginia’s largest internet service provider and often the only option in rural areas of the state, sent a letter to the FCC in July applauding the commission’s proposed repeal, saying the regulations are outdated. In the letter, Frontier said it has a core commitment to “treating all Internet traffic the same regardless of content.” “Indeed, the combination of competition in the broadband market and consumer expectations would significantly discipline any company that sought to micromanage a user’s content,” the letter said. “The fundamental Internet freedoms will remain as strong as ever, whether or not they are backed by outdated Title II regulation.”

According to Frontier, internet service providers aren’t the problem when it comes to the issue of net neutrality — it’s major content providers such as Google, Netflix, YouTube and Facebook that need to be looked at. Frontier complained these companies don’t “help fund the upgrades their traffic is requiring,” adding that current FCC rules prevent negotiations relating to that from happening. The company claimed this issue prevents it from investing further in rural broadband access.
Frontier's position mirrors the that of then AT&T CEO Ed Whitacre who proclaimed in 2005 that content providers like Google, Netflix, YouTube and Facebook shouldn't be able to ride over "my pipes" without paying. Naturally AT&T like other legacy telephone and cable companies would prefer a business model based on a two sided market: assessing consumers monthly service charges for voice, video and data services on the delivery side and content providers like the aforementioned for access to their "pipes" as Whitacre put it.

That two-sided market is the fully vertically integrated business model telcos and cable companies desire because of the obvious revenue enhancement possibilities. Since telecom infrastructure is a naturally monopolistic offering, the prospect of telcos and cable companies abusing their monopoly power to exploit those opportunities concerns advocates of retaining the U.S. Federal Communications Commission's 2015 Open Internet rulemaking that regards Internet-delivered telecommunications services as a common carrier utility open to all content providers free of charge. 

Tuesday, February 20, 2018

New Google venture plans neighborhood "built from the Internet up."

In 2016, Google Fiber began reconnoitering away from its plan to overbuild legacy incumbent telephone and cable company infrastructure with fiber to the premise telecom infrastructure in select metro areas of the United States. Taking on incumbents in existing parts of these metros proved too slow and costly and Google Fiber had no overwhelming technological or marketing advantage relative to them.

Another Google venture takes a different tack. Rather than overlaying fiber optic telecom infrastructure on an existing neighborhood, it would build an entirely new “smart” neighborhood where there are no incumbent providers. One that’s “built from the Internet up… merging the physical and digital realms,” according to a description of the project – dubbed Sidewalk Labs – in this Slate article. A pilot to roll out the concept in an undeveloped portion of Toronto, Canada Eastern Waterfront kicked off in late 2017. (Click here for news release).

Sunday, February 18, 2018

Forecast of holographic interactive video within five years a pipe dream

Magic Leap CEO thinks volumetric video will be a part of live TV in five years - The Verge: In an interview with The Verge, Abovitz said that within “two to five years,” it will be technically possible for people wearing Magic Leap goggles to watch an NBA game (or other media) live, but in a holographic, interactive form. “You can stream over the top and to the screens, the virtual screens — you can do that now,” he said. “We’re looking at, how do you derive the information to move the volumetric stuff from that? And then, how do you do volumetric live-streaming as well ... if you time where processing power is going, particularly backends, you’re single-digit years away from that happening.”
Processing power indeed continues as it has to increase. But Abovtitz neglects to consider telecommunications infrastructure deployment advances far more slowly. According to the U.S. Federal Communications Commission, many millions of American homes lack telecom infrastructure capable of supporting high quality data, voice and video.

Too many remain embarrassingly served by 1990s DSL over aging copper lines, satellite Internet and even dialup. An interactive holographic experience will require enormous bandwidth only fiber optic lines can deliver. But most premises lack fiber connections and there's no coordinated national effort to modernize America's aging and outdated legacy metallic telecom infrastructure to fiber.

Tuesday, February 13, 2018

Trump budget proposal re telecom infrastructure likely an opening gambit

President Donald Trump's $200 billion infrastructure proposal released Monday includes $50 billion in funding for rural communities, but nothing specific for broadband deployment. Even though Trump has talked about the importance of expanding broadband in rural areas, he has not committed any funding to help build networks. Instead, his efforts have been aimed at eliminating red tape and regulation to get infrastructure built. The proposal, which makes no mention of broadband infrastructure, is meant to spur the investment of at least $1.5 trillion in infrastructure, according to a White House fact sheet. Under the plan, the feds would contribute a total of $200 billion over the next 10 years. About half that money would be used as part of an incentive program to entice private investors as well as city, state and local governments to invest in infrastructure projects.
Trump's infrastructure plan offers no funding for rural broadband - CNET

This CNET story is incorrect. The Trump administration's budget outline on infrastructure spending does in fact propose appropriations for the construction of advanced telecommunications infrastructure as detailed here.

The pushback from various stakeholders is because the proposal doesn't provide dedicated funding for a badly needed modernization of the nation's telecommunications infrastructure from the metallic networks of the telephone and cable TV era to fiber optic connections capable of handling ever growing bandwidth demand generated by digital content and services. The money is allocated in one big bucket for all types of infrastructure and not just telecommunications. The concern is states and localities might give priority to roads, highways, airports and government facilities, leaving little if any for telecommunications infrastructure.

Another big concern is Trump's plan offers too few federal dollars and would require states and local government and the private sector to shoulder the bulk of the cost -- a difficult proposition they continue to claw themselves back to fiscal health following the economic downturn a decade ago that severely reduced tax revenues. And a task made more challenging as a public pension funding crisis emerges in the states and localities.

It's best to view the administration's proposal as just that -- an opening gambit that will surely result in intense negotiations in the coming months as states and locals push their funding interests. It's quite likely given the large number of governors and local officials citing the need for advanced telecommunications infrastructure as critical in the 21st century economy -- including some in attendance at a White House meeting where the administration's infrastructure plan was announced -- that it will assume greater priority as negotiations move forward.

Monday, February 12, 2018

Trump administration proposes federal funding for infrastructure including advanced telecommunications

The Trump administration today issued an outline of its proposed legislative initiative to fund improvements to the nation’s aging infrastructure. While the proposal does not specifically set aside funding for advanced telecommunications infrastructure, the three components below authorize its funding. President Trump talked up the funding for advanced telecommunications infrastructure in remarks today to state and local officials at the White House. Trump said “it’s been very unfair what’s happened with broadband in terms of the Midwest and in terms, really, of rural areas.” At least four officials emphasized the need to fund it including Wisconsin Gov. Scott Walker and Virginia Gov. Ralph Northam. Northam termed it “very, very important” to his state. (Link to remarks here)

A proposed Rural Infrastructure Program would provide $50 billion for capital investment in rural infrastructure projects. Policy objectives would be to:

· Expand access to markets, customers, and employment opportunities with projects that sustain and grow business revenue and personal income for rural Americans;

· Enhance regional connectivity through public and private interregional and interstate rural projects and initiatives that reduce costs for sustaining safe, quality rural communities; and

· Increase rural economic growth and competitiveness by closing local infrastructure gaps in development-ready areas to attract manufacturing and economic growth to rural America.

Eighty percent of the funds would be distributed as state block grants to be used for rural infrastructure needs with 20 percent of the funds reserved for performance grants. A portion of the funds would be set aside for tribal and territorial infrastructure, with the remainder available to states. States would be required to delineate criteria for administering the funding for specific types of projects including telecommunications infrastructure. States would be required to publish a comprehensive plan demonstrating how the projects align with the evaluation criteria in the infrastructure incentives program, including state, local and private sector investment in eligible projects.

A Transformative Projects Program would provide $20 billion in funding for “ground-breaking project ideas that have significantly more risk than standard infrastructure projects, but offer a much larger reward profile.” The primary policy goal is to advance projects that significantly improving performance from the perspective of availability, safety, reliability, frequency, and service speed; substantially reduce end user costs for services; introduce new types of services; and improve services.

To ensure greater accountability and control over this category of projects, funding would be linked to terms and conditions of the award including achieving project milestones. Most of the funding (up to 80 percent) would be set aside for capital construction costs. Half could be used to cover project planning costs and up to 30 percent for proof of concept projects. Projects that utilize capital construction funding would be required to partner with the federal government to share the value of completed projects, based on the characteristics of project and its projected revenues. Technical assistance would be available from the federal government or funded by this program.

Expanded eligibility for Private Activity Bonds to fund public purpose infrastructure projects to include telecommunications infrastructure projects provided they are owned by state or local governments. Privately owned infrastructure may be funded, but must be available for public use and would be subject to state or local governmental regulatory or contractual control or approval.


The administration’s infrastructure proposal comes on the heels of a continuing budget resolution enacted the previous week that had reportedly appropriated $20 billion for infrastructure including telecommunications infrastructure in rural areas. The appropriation was not included in the enacted measure, H.R. 1892.

Since the administration’s infrastructure spending proposal specifically references “rural broadband” to identify eligible projects, a key question is how federal and state entities that would administer the funds define those words. The Rural Infrastructure Program defines “rural” as “areas with populations of less than 50,000.” How those areas are specifically defined takes on significance since in the United States, some exurban and even suburban areas lack advanced landline telecommunications infrastructure serving end user premises, redlined by legacy telephone and cable companies.

Ditto the term “broadband.” Legacy providers have defined the term based on the throughput of the connection serving end user premises rather than by delivery infrastructure. That in turn has led to more than a decade of disagreement among providers, consumers and regulators over what premises are deemed having adequate service to support high quality voice, data and video services. To ensure the best use of taxpayer funds, the federal government should fund only fiber optic infrastructure be connected to customer premises since only it can easily accommodate ever increasing bandwidth demand and isn’t prone to near term obsolescence.

Saturday, February 10, 2018

Modernizing exurban telecom infrastructure to cut traffic congestion, long commutes

America's Other Housing Crisis: Undercrowded Suburbs - The Atlantic: The reality is that most of the housing stock and most of the land area of America’s metro areas is made up of relatively low-density suburban homes. And a great deal of it is essentially choked off from any future growth, locked in by outmoded and exclusionary land-use regulations. The end result is that most growth today takes place through sprawl. While urban density can house some people—mainly affluent and educated ones—the bulk of population and housing growth is shifted farther and farther out to the exurban fringe. That leads to more traffic and longer commutes, and the social and environmental consequences that flow from them, as this old suburban-growth model is stretched beyond its limits.

There's a disconnect between America's telecommunications infrastructure and this residential development pattern. The exurbs frequently suffer from cable company redlining and outmoded legacy telephone company copper cable plant. In addition, homes are often served solely by substandard, costly wireless services as landline providers concentrate on building fiber connections to multi-family dwellings (known as MDUs) in densely populated urban cores.

This is a point of overlap between telecommunications policy and regional planning. Modernizing telecom infrastructure at the fringes of metro areas to fiber to the premise (FTTP) can play a big role in reducing daily commute trips to urban centers by making it easier for knowledge workers to work in their residential communities.

Thursday, February 08, 2018

Go suck a satellite


That's the message to adjacent landline redlined households seeing this tree placard pitching satellite Internet service. That's Comcast cable on the nearby utility pole. Dateline: El Dorado County, California.

Tuesday, February 06, 2018

Can The States Really Pass Their Own Net Neutrality Laws? Here’s Why I Think Yes.

Wetmachine Tales of the Sausage Factory Can The States Really Pass Their Own Net Neutrality Laws? Here’s Why I Think Yes.

This is Harold Feld's analysis of the question. Feld concludes that states can in fact regulate advanced telecom services. Feld reasons that while advanced telecommunications are clearly interstate, the scope of the U.S. Federal Communications Commission's jurisdiction isn't absolute and thus may not allow it to preempt the states should they enact statutes that codify the FCC's 2015 Open Internet rulemaking. The FCC is in the process of reversing the rulemaking that placed advanced telecommunications under Title II of the federal Communications Act, designating it as a common carrier utility.

The rulemaking's so-called "net neutrality" provision barring providers from blocking or throttling traffic over their networks has drawn concern that the providers might abuse their monopoly control over networks extract revenues.

That's a prospective concern that is less relevant and pressing in many states than the lack of advanced telecommunications infrastructure that leaves many homes, schools and small businesses unable to obtain service or offered substandard service options because their areas have been redlined by legacy incumbent telephone and cable companies. The FCC's Open Internet rulemaking requires service be provided upon reasonable customer request and specifically bars discriminatory redlining.

These mandates -- and less so net neutrality -- is why the providers and their trade associations will strongly oppose any proposed state legislation based on the federal rulemaking. State lawmakers are hearing far more vocal complaints from constituents that they've been refused service or forced to use pricy, substandard wireless services that don't meet minimum FCC requirements for advanced telecommunications than concerns providers will in the future block or throttle content. The volume and urgency of those complaints have been growing over the past decade or so. In addition, during that period and increasingly in recent years, state representatives have declared advanced telecommunications infrastructure critical to support commerce, government and education.

Friday, January 26, 2018

Soros gets it wrong: Telecom infrastructure is a monopoly, not Facebook and Google

Soros slams Facebook and Google as 'menace' to society, 'obstacles to innovation' - Business Insider: Facebook and Google effectively control over half of all internet advertising revenue. To maintain their dominance, they need to expand their networks and increase their share of users' attention. Currently, they do this by providing users with a convenient platform. The more time users spend on the platform, the more valuable they become to the companies. Content providers also contribute to the profitability of social-media companies because they cannot avoid using the platforms and they have to accept whatever terms they are offered.

The exceptional profitability of these companies is largely a function of their avoiding responsibility for — and avoiding paying for — the content on their platforms. They claim they are merely distributing information. But the fact that they are near-monopoly distributors makes them public utilities and should subject them to more stringent regulations aimed at preserving competition, innovation, and fair and open universal access.

Soros's position here is misguided. Facebook's and Google's online platforms are not natural monopolies like landline telecommunications infrastructure that delivers them to end users in their homes, businesses and institutions. Most people can choose between one and maybe two providers: a legacy telephone or cable company. These are truly public utilities since they are hardwired infrastructure unlike online social media platforms. They require fair and open universal access called for by Soros.

Facebook's and Google's online platforms are clearly hugely successful. But there's no guarantee they'll be around for decades like the telecom infrastructure that delivers them. Consumer preferences change and innovators create new services. It's a lot easier to do that with programming code and bits and bytes compared to relatively permanent telecom infrastructure as shown by the ongoing problem of service gaps that leave many premises unserved by landline infrastructure.

Thursday, January 11, 2018

Both public and private sectors have role to play in U.S. telecom infrastructure modernization

State Senator hopes to spur rural broadband development in Alabama with incentive program - Yellowhammer News: Scofield notes that rural broadband is lacking because the return on investment isn’t there for providers who must build costly infrastructure to serve sparsely populated regions. While providers such as AT&T are investing in new technologies such as fixed wireless, which beam internet signals from cell towers to nearby homes, those speeds are only a slight step up from DSL.Some lawmakers are pressing for government to step into the fray, such as Sen. Tom Whatley (R-Auburn), who has introduced bills to allow the expansion of government-owned networks – such as the broadband system of Opelika Power Services located in his district. But Scofield takes a more limited government approach, noting that the private sector has both the expertise and the economies of scale to do the job more efficiently.

A more nuanced discussion is called for here. It's not an either private or public sector argument. Both the public and private sectors can play a role in the badly needed modernization and build out of America's telecommunications infrastructure. The public sector should own and fund its construction as it does roads and highways. To Scofield's point, the private sector has the expertise. It should build and maintain it just as private contractors do with roads and highways.

Show me the money: Congressman challenges argument that regulation greatest impediment to telecom infrastructure investment

Digital divide: Congress to push for better Internet access in rural areas: Yet the main obstacle to broadband expansion into rural areas is cost, said Pennsylvania Rep. Mike Doyle, the top Democrat on the House Communications and Technology Subcommittee. "It would require tens of billions of dollars to bring broadband to unserved and underserved parts of the country,” he said. “The private sector hasn’t done it because they know they wouldn’t make a profit on it.” Any rural broadband initiative without substantial new funding “would be nothing more than window dressing,” Doyle said.
The "window dressing" to which Doyle refers are assertions by Rep. Marsha Blackburn and other lawmakers that legislative solutions are needed to reduce regulatory burdens on ISPs to speed capital investment in "technology neutral" infrastructure (code for substandard mobile wireless and satellite versus fiber) to serve customer premises. It's refreshing to hear some economic honesty when it comes to tackling America's bad and worsening telecom infrastructure deficit.

Monday, January 08, 2018

Like Obama administration,Trump administration turns to symbolic window dressing rather than modernizing U.S. telecom infrastructure

Rural Internet to Be High Priority for Trump Administration | Successful Farming: Some steps can be taken in the near term to expand broadband networks, said Grace Koh of the National Economic Council. One would be clearer and easier rules for installing antennas on federal buildings and towers. “We will seek to use ‘dark fiber’ that the agencies have deployed in order to allow rural providers to interconnect and provide service to communities that have not had access to broadband before,” said Koh. “Dark fiber” is fiber optic cable that has been installed but is not in use. The administration will also coordinate funding, scattered among agencies, for broadband deployment and adoption. “We are hoping, at this point, to have a few immediate actions to start right away,” said Koh. “Certainly, we anticipate being able to make towers and other infrastructure from the Department of Interior available for collocation. This should cut down on tower construction costs and allow for providers to get their plant and equipment out much more quickly.”

The Trump administration like the Obama administration before it is engaged in symbolic window dressing rather than champion badly needed and aggressive efforts to modernize America's legacy metallic telecommunications infrastructure to fiber optic connections for all homes and businesses. These measures are symbolic incrementalism that will not make any meaningful progress toward that end because they don't deploy fiber over the "last mile" serving these premises.

An October 2017 report by the administration's Task Force on Agriculture and Rural Prosperity noted telecom infrastructure gaps are due the inability of investor owned providers earn a return on their capital investments in areas of the nation having lower population density. But while acknowledging that structural problem, it offers no alternatives, all but guaranteeing continued infrastructure deficits. It also advocates the use of wireless technologies rather than bringing connections to customer premises including satellite, fixed wireless, and cellular networks, calling it a cheaper "technology neutral" approach. However, these wireless technologies are limited by the laws of physics and have proven inadequate to accommodate the growing need for increased bandwidth.

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"Mr. President, I think a bunch of broadband talk would be seen as a pretty weak response."

Sunday, December 24, 2017

To Save the Internet We Must Own the Networks | By David Morris | Common Dreams

To Save the Internet We Must Own the Networks | By David Morris | Common Dreams:

The tools to build locally owned networks may well be there as the author of this article concludes. But adequate funding is another question. Constructing telecommunications infrastructure is very costly and labor intensive. It’s far easier to do in places where local municipal and cooperatively owned electric distribution and telecommunications networks already exist and have supporting infrastructure and funding mechanisms in place. Many of these entities got their start in the early in the 20th century with robust federal funding.

Nearly a century later, there is no meaningful federal funding to support the formation of new local entities to construct and operate advanced fiber telecommunications networks. State and local budgets are strained with obligations to repair and replace other aging infrastructure and honor pension obligations to their workers. They can’t be expected to provide billions to finance locally owned telecom networks.

Without government funding in the form of technical assistance grants and loans, expecting property owners and consumers to come up with the money is highly uncertain outside of highly affluent communities. As price takers rather than the price makers they would be the owners of local infrastructure, they are accustomed to purchasing “broadband” as a commodity monthly service and grudgingly tolerating exorbitant monthly costs and annual rate increases from incumbent telephone and cable companies. They’re unlikely to be motivated to put up the money to build an alternative -- albeit better -- network infrastructure than currently available to them unless they live in a neighborhood redlined by the incumbents.

Local ownership of telecom infrastructure is in concept a meritorious idea. But without a coordinated and well-funded federal program for it that recognizes that local infrastructure is essential to a vital interstate telecommunications network and not a local amenity like a park or playground, it remains only that.

Monday, December 18, 2017

FCC's repeal of Open Internet regulation sets stage for mega versions of 1990s era AOL, CompuServe walled gardens

The U.S. Federal Communications Commission has restored the regulatory framework that treats Internet protocol-based communications as an information service. The move reverses the commission’s 2015 Open Internet rulemaking classifying IP as a common carrier telecommunications utility under Title II of the Communications Act. So instead of an open Internet, the United States is turning back the clock to the closed, proprietary walled gardens that existed prior to the advent of the World Wide Web in the mid-1990s.

It’s even a greater back to the future policy move than appears at first glance. It sets the stage for media producers to consolidate with the companies that own the “pipes” – cable and telephone companies that serve more than three quarters of American homes, businesses and schools. After all, if those pipes are to be regulated as information services rather than telecommunications, companies that create information take on an integral role in this vertically integrated business model.

Consequently, the future could bring more combinations like Comcast’s acquisition of NBC or Verizon’s takeover of AOL and its pending deal for Yahoo! Under the new regulatory policy, it’s not inconceivable a big cable company or a telco could similarly make a play for Netflix.

Even Amazon, clearly in the information service business with its original offer of books and now its own production video content, could be a potential merger partner for one of the big pipe players. An Amazon-Verizon walled garden, for example, would provide this information content along with socks, towels and any other imaginable consumer commodity with both companies taking a nick of the revenues. Prime members might be eligible for a discounted monthly rate for Verizon connectivity.

The result would be a supersized version of the original big online information services: CompuServe and AOL. Both provided electronic mail along with content prior to the debut of the Netscape World Wide Web browser in the mid-1990s that swung open the garden gates to a vast digital universe. CompuServe even charged its subscribers by the minute to read “premium” content -- not unlike telephone long distance service. Such a billing scheme might well make a return under the FCC’s latest regulatory framework.

Last year Google abandoned its vision of building proprietary fiber to the home infrastructure to make its content more widely available. It could follow the adage, “If you can’t beat ‘em, join ‘em," and concede its effort to outshine legacy incumbent telcos and cablecos and their outdated metallic telephone and cable TV networks by merging with one of them to create a colossal proprietary information service.

Saturday, December 16, 2017

Norman Macrae on telecommunications: Third of three great transport revolutions of past 200 years

Norman Macrae Surveys - help microeducate and microfranchise 3 billion jobs: "Telecommunications are now recognised as the third of the three great transport revolutions that have, in swift succession, transformed society in the past two hundred years. First, were the railways; second the automobile; and third, telecommunications-attached-to-the-computer, which was bound to be the most far-reaching because in telecommunications, once the infrastructure is installed, the cost of use does not depend greatly on distance."

Sens Heinrich, Heller Introduce Bipartisan Legislation To Increase High-Speed Internet Access In Indian Country | Benton Foundation


Senators Martin Heinrich (D-NM), Ranking Member of the Joint Economic Committee, and Dean Heller (R-NV) introduced the Tribal Connect Act of 2017 to improve broadband connectivity in Indian Country. The bill would increase access to the Federal Communications Commission's schools and libraries universal service support program, known as E-rate, that provides discounts to assist public schools and libraries obtain high-speed internet access and telecommunications at affordable rates.
Sens Heinrich, Heller Introduce Bipartisan Legislation To Increase High-Speed Internet Access In Indian Country | Benton Foundation

This is misguided policy that emulates the market segmentation strategy employed by incumbent telephone and cable companies that produced the very access disparities prompting this bill. Instead of targeting certain areas, buildings or ethnic groups, American telecommunications policy should be to construct fiber to the premise telecom infrastructure serving all -- and not just some -- premises.

Tuesday, December 12, 2017

As feds reclassify Internet as information service, will state and local governments finance fiber telecom infrastructure to deliver it?

With Net Neutrality Vote Looming, Cities Look to Publicly Owned Internet Options: (TNS) — It's going to cost somewhere between $70 million and $140 million, officials estimate, to build out the underground fiber-to-the-premises network that Boulder needs to make communitywide broadband a reality. The question for the City Council has never been whether this pursuit is worthwhile, as voters and elected leaders clearly agree on the value of open-access, affordable, high-speed Internet — the introduction of which would put pressure on the incumbent Comcast-CenturyLink duopoly to lower their prices and offer higher speeds. Rather, the question is: Who is going to pay for this buildout? And, for much of the past year, based on advice of a consultant, Boulder has paid $186,000 to date, the most likely answer seemed to be that the city would partner with an outside provider willing to pay for the buildout.

The economic question here is will households and businesses be willing to pay what they now pay for landline Internet access in the form of a tax or utility fee? This question now takes on greater significance as the federal government prepares to reclassify Internet service as an information rather than telecommunications service. That would leave building the fiber telecom infrastructure to deliver those information services to states and localities.

A related question is whether this hands off federal regulatory policy will prompt states to repeal existing statutes restricting the construction of telecommunications infrastructure owned by local governments? It would be difficult for states to justify maintaining these restrictions if the federal government doesn't consider Internet service as a telecommunications utility.

Monday, December 04, 2017

Legacy incumbent telcos, cablecos not entitled to state sanctioned monopoly without FCC enforcement of Title II universal service requirement

Colorado Localities Vote for Broadband, but Must Get Creative to Actually Deploy It: “Cities don’t do this because they want to compete with the incumbent — they do it because the incumbent refuses to,” said Tom Roiniotis, general manager of Longmont Power & Communications, which runs the network.
Why the refusal? One big incumbent legacy telco explains: 

Mark Soltes, CenturyLink’s assistant vice president in Colorado for public policy and government affairs, said the gaps in service across the state are due to rugged landscapes and far-flung population centers. “You’re looking at deployment in some places where there’s no payback,” he said.
That's the economic reality and there's nothing unreasonable in CenturyLink's justification. It owes its investors a profitable return. But if a public sector entity steps into the gap where the numbers don't pencil for CenturyLink or other legacy incumbent, that's hardly market competition. In an open market, competitors compete for market share and profitable business. That's not the case when a public sector entity provides an essential telecommunications utility that's not being provided a private sector player because there's not a sufficient business case to do so. It's simply serving the need where the private sector cannot.

Nor do incumbent telcos and cablecos have a right to a state sanctioned monopoly. Particularly when the U.S. Federal Communications Commission is not enforcing the universal service and anti-redlining requirements of its current Open Internet regulations based on Title II of the Communications Act and is poised to repeal those rules later this month. If the FCC did enforce the rule, then the incumbents would have a far stronger and reasonable position. At present, they do not.

Saturday, December 02, 2017

FCC Chair Pai's distorted take on America's telecommunications infrastructure challenges

Why deregulating internet service makes sense - Chicago Tribune: FCC Chairman Ajit Pai says CEOs, investors and entrepreneurs are in the best position to invent and give consumers what they want, so they should be allowed to compete. “The No. 1 issue that I hear about is that people want better, faster, cheaper internet access,” Pai told The Wall Street Journal earlier this year. “They want access, period. To me at least, that’s the question the FCC should be squarely focused on: What is the regulatory framework that will maximize the incentives of every company to deploy the next generation of networks?”

This brings to mind the adage that to a carpenter, problems generally appear as protruding nails needing to be hammered down. So it's no surprise that to a regulator, America's telecommunications infrastructure deficiencies are a regulatory problem calling for a sharp whack of the regulatory hammer. Or in Pai's words, an overgrown regulatory thicket of weeds calling for the application of a weed whacker.

The problem is Pai has incorrectly framed both the problem and the solution. America's disparate and costly telecommunications services and particularly those serving buildings where people live, work and attend school are not caused by excessive regulation. In fact, the reverse could be plausibly argued. The Federal Communications Commission current Open Internet rules classifying Internet service providers as telecommunications common carrier utilities under Title II of the Communications Act require them to fulfill reasonable requests for service and not discriminate based on a customer's address. That operates so as to force them to upgrade and build out their networks to honor those requests.

Rather, they are primarily due to overreliance on legacy telephone and cable companies to make the necessary capital expenditures to transition their metallic cable plants to fiber. And to do so at a rapid pace in order to meet the burgeoning demand for connectivity of which Pai speaks. Their business models that require quick profits can't do that because it can take many years to achieve profitability on telecommunications infrastructure that costs many billions of dollars.

Friday, November 17, 2017

The Kafkaesque consequences of America's piecemeal approach to telecom infrastructure

City of Orr: Not enough fiber? | The Timberjay: The problem at this point really isn’t lack of fiber. There are multiple fiber conduits already in the ground, notes Long, but it’s getting the service out to customers that’s been the hurdle. He notes that Bois Forte tribal offices have exceptional broadband capacity, thanks to the middle-mile fiber project initiated by the Northeast Service Cooperative. But the private partners on that project, who were supposed to utilize that backbone to extend faster connections to residential and commercial customers, have been slow to deliver. “We have more capacity here at the government center than we know what to do with,” said Long. “But no one else can jump on board.”

This is the sad consequence of adopting a piecemeal, segmented view of telecommunications infrastructure: building part of it thinking someone else will come along to construct the rest to connect the end users. Of course, it doesn't always work out that way in America's Keystone Cops method of planning and deploying telecom infrastructure that produces Kafkaesque outcomes such as this suffered by the good folks of Orr, Minnesota.

Uwe Reinhardt on U.S. health care -- he might have said the same about telecom infrastructure

So if you ask me, "Are we ever succumbing to some notions of solidarity as a nation? I would say, "Not at all." I would describe us as a group of people who share a geography. That's a better description of Americans than that we're a real nation with a sense of solidarity.

Uwe Reinhardt, the German born Princeton University economics professor who died earlier this week at age 80, made that comment in the context of the American system of providing and paying for medical care. Americans, he observed, view medical care as a consumer commodity rather than a social service available to all citizens and hence tend to resist policies that would recast health and medical care as a common good. As a commodity, access to its purchase depends on one's income and financial assets. The result is very uneven access to care based on socio-economic status.

If Reinhardt had studied the U.S. telecommunications system as well as health care economics that was his area of expertise, he might have reached a similar assessment. When it comes to access to advanced telecommunications infrastructure, there is no sense of commonweal despite a common national geography. There is a sense that the telecommunications infrastructure one is served by is driven by individual choices on vocation and housing. If you choose to live in a neighborhood that has robust landline infrastructure rather than another that might only be a mile or two away or you earn too little to pay increasing and unregulated rates for commodity "broadband" service, that's your problem.

Rather than implement a federal policy that views telecommunications infrastructure as an interstate asset that benefits all Americans no matter where they live, we leave it to underfunded localities to try to cobble together their own disparate infrastructures with "wildly uneven" prospects, according to a recent compilation. Consequently rather than a coordinated national effort to modernize yesterday's metallic infrastructure designed for voice telephone and cable TV to modern fiber optic infrastructure capable of serving the advanced telecommunications of today and years to come, the United States is attempting to do so on the cheap in a piecemeal and highly incremental manner.