Emerging fault line of the digital divide: new vs. older neighborhoods

The outlines of a new fault line along America's digital divide separating broadband haves from broadband have nots is becoming more and more apparent.

The split is between older, established neighborhoods and newer subdivisions, the latter often governed by a homeowner association. Telcos and cable companies like these developments because they believe new homebuyers will purchase more profitable bundled services such as the so-called "triple play" package of voice, high speed Internet access, and video programming. They can also negotiate exclusive deals with the association that lock out other providers and assure a higher take rate.

This is leaving older neighborhoods currently without broadband with greatly dimished prospects for ever getting broadband as providers effectively redline these areas, concentrating instead on new developments. This is bound to produce a political backlash from homeowners in older neighborhoods who will increasingly turn to their local governments for a solution. That in turn will drive incentives for public-private parterships in which local governments provide public rights of way for the construction of open access broadband telecommunications networks.

Schwarzenegger questioned on how telemedicine funding will expand broadband access

California Gov. Arnold Schwarzenegger received some skeptical questioning from a broadband deprived area of the state at a telemedicine demonstration project held last week in Eureka.

A questioner asked how $200 million earmarked for telemedicine under Proposition 1D, the school construction bond approved by voters last November, would help expand broadband access in Humboldt County. The questioner pointed out the county lacks a University of California campus, implying none of that $200 million would go to expanding broadband in that Northern California county:

Q: In order for something like telemedicine to work effectively, Humboldt County has to have a reliable broadband system, which we do not. What will the broadband initiative do to help us achieve a reliable system? Is the state going to be providing funding for that, or is it essentially going to be removing road blocks, as they say, to allow businesses (Inaudible)

GOVERNOR: Well, both. First of all, with my executive order we eliminated road blocks that were there, because we want to go and build and facilitate every town, every village in California as quickly as possible. That is the idea. So it’s a combination with the private sector and the public sector. That’s why we put the 200 million dollars in there, so that when they start building and increasing the facilities, university facilities. We are saying lets not just build buildings, let us also bring in technology, the latest technology. And so that’s what the 200 million dollars is all for.

Q: But we don’t have a university (Inaudible)

GOVERNOR: No, no, but I mean so that the private sector will pick it up and then take it to the various different places. So thank you very much. Thank you, everyone, for being here. (Applause)

It bears watching closely how much of the $200 million Schwarzenegger says will ostensibly be granted to private sector telecom vendors results in greater broadband availability in Humboldt County and other areas of California mired on the dark side of the digital divide.

AT&T residential broadband on back burner?

Some observers including your blogger have questioned AT&T's commitment to the residential wire line market in the wake of the company's recent acquisition of BellSouth, giving Ma Bell a 100 percent stake in Cingular Wireless. Indeed, AT&T chief Ed Whitacre told The Wall Street Journal after the deal closed "We're about to become a company with wireless at its heart.'' That likely means investment in AT&T's wire line infrastructure has been bumped down to a lower priority.

A personal experience today reinforces that scenario. I walked by a Cingular store and noticed a sign in the window "AT&T/Yahoo High Speed Internet Sold Here." So I dropped in and asked the manager when it would be available in my neighborhood. He didn't have a clue and suggested I come back in a couple of days and talk to the "techie guy." I headed out the door before he could ask me if I was interested in a wireless phone.

Welcome to my neighborhood, a broadband black hole

The typical explanations for broadband black holes tend to fall along geographic or demographic lines. Homeowners are either located too far from existing telecommunications infrastructure or telcos and cable companies don't like their income levels, figuring they won't spring for more profitable premium and bundled broadband services.

Apparently my neighborhood is an exception to both rules and I wonder if perhaps there are others like it. It's just two miles from a major U.S. highway where both DSL and cable services are available.

The demographics are don't fit the usual rationale for digital redlining either. One nearby property owner is building two residences and a home office (and large pool complex) on his land. Just up the road, another property has just been listed for more than $1 million. Seems like the kind of demographics the nearby telco (AT&T) and cable company (Comcast) would like. Can't blame low density either. Several of my neighbors are within 100 feet of my home.

Apparently broadband black holes are like the physical black holes in space to the incumbent telco and cable providers. It's as if they don't exist and no information about them can escape.

Media think tank faults flawed U.S. telecom regulation for shortcomings in broadband access

U.S. telecommunications regulators operate without a clear overall policy goal and Americans consequently have less access to broadband services than Europeans, a media think tank concludes in a paper issued this week.

[W]hile the European Union has defined its issues focused on their definition at the highest levels of policymaking and seems to be addressing the challenge created by social inequity, Congress is mired in regulating the relationship among the operators. Instead of managing competition it manages the competitors. It perceives the issue as one that arises from the need to allow operators to provide certain services, and as a result the regulator does not deliberate the goals of the policy. Indeed the focus of policy in the United States is on the needs of the industry and not on public service.

According to the Benton Foundation:

America is on the verge of vast new broadband-driven digital transformation that promises to make life more livable, businesses more productive, jobs more plentiful, and the Internet more accessible. However, at the dawn of this digital age, those who could benefit the most from this economically empowering technology are also those most likely to be left without access because of where they live or how much money they make.

As Congress puts universal service reform at the top of its telecom policy agenda, this page will provide a one-stop collection of papers and speeches advancing a new vision for Universal Service -- for making broadband as universal as telephone service is today and a pathway for progress. This effort will embrace the premise that Universal Broadband access is now as important to the advancement of the American ideal of equal opportunity in the 21st century as universal access to education and universal phone service was in the last.

HDTV growth emerges as driver for fiber to the home

While cable companies and telcos are making a play for so-called "triple play" services combining telephone, high speed Internet and video, the rapid growth of high definition TV is likely to require them to upgrade their systems to fiber optic cable, an industry consultant suggests. That's because metal wire-based coaxial and copper cable lack the capacity to carry the estimated 20 Mbps that end users will require in order to get all three services including HDTV. Michael Kennedy explains in Telecommunications Online:

Video services consume most of the bandwidth within the voice, video, and Internet Triple Play portfolio. About 2 Mbps is required to deliver Standard Definition TV and 9 Mbps is required for High Definition TV. Whereas network designers can safely over subscribe bandwidth higher up in the network this cannot be done when allocating bandwidth to a single enterprise establishment, household or local serving area— especially for video service. HDTV sets are already out selling SDTV so HDTV must be taken as the standard offering when planning an Optical Distribution Network. This means that each household must be allocated a minimum of 20 Mbps because several HDTVs are likely to be in use at the same time.

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Legacy analog copper, cable infrastructure stymies U.S. broadband growth

So said Sen. Ted Stevens of Alaska at yesterday's Senate Commerce Committee looking into why the United States is falling behind other nations on broadband connections. And Stevens cautioned those who regard wireless broadband infrastructure as a suitable replacement:

"The problem is basically we can't use the legacy system of cable and wire" for broadband and have to build out across rural areas, Stevens said. "Wireless technology has brought new communication, but it is slower and not adaptable."