Obama proposes additional funds for broadband infrastructure

President Barack Obama said in a speech today at the Brookings Institution that more federal subsidies are forthcoming for broadband infrastructure as part of a renewed effort to create badly needed jobs. Whatever the amount, it will supplement the $7.2 billion already allocated in the American Recovery and Reinvestment Act Obama signed into law in February.

Here's the relevant excerpt from a transcript of the president's remarks posted on the White House Web site:

Second, we're proposing a boost in investment in the nation's infrastructure beyond what was included in the Recovery Act, to continue modernizing our transportation and communications networks. These are needed public works that engage private sector companies, spurring hiring all across the country.

Already, more than 10,000 of these projects have been funded through the Recovery Act. And by design, Recovery Act work on roads, bridges, water systems, Superfund sites, broadband networks, and clean energy projects will all be ramping up in the months ahead.

Whatever the additional amount agreed to by the president and Congress, there's still a long way to go given the consensus view that the $7.2 billion in the economic stimulus package represents a mere down payment on what the U.S. needs to invest to modernize its outmoded and incomplete telecommunications infrastructure as Blair Levin, the Federal Communications Commission's broadband czar, generally described the amount as the Obama administration prepared to take office one year ago.

Hyper local view of Internet telecom infrastructure misguided, reinforces network access disparities

City Broadband Plans: One Vision, Four Markets, Four Issues | Benton Foundation: My message today is simple: every city needs its own broadband plan.

At one time, I would have agreed with this statement by Blair Levin, who wrote the 2010 U.S. "National Broadband Plan" while serving on the staff of the Federal Communications Commission. I even went as far as paraphrasing the late House Speaker Tip O'Neill by declaring "all broadband is local" on this blog.

I no longer hold that view. It's not just about "broadband" in a given municipality or as is more often the case, a particular neighborhood. Instead, the truly important issue is ubiquitous Internet telecommunications infrastructure in keeping with the FCC's recent reclassification of Internet service as a common carrier utility. And that infrastructure is fundamentally interstate -- much like the federally funded interstate highway system -- and global. In that regard, it's not directly comparable to the municipal and cooperative electric power systems created in the early 20th century that generated and distributed power consumed locally. The Internet is a telecommunications network that reaches far beyond the borders of a given city or town and whose true value is recognized by Metcalfe's Law, which holds a network increases in utility as more users are added to it. In short, it's all about the network and not "broadband" or discrete "gigabit cities."

The hyper-local focus on this essential infrastructure for the 21st century is well meaning and understandable in the absence of strong federal leadership and support. But it's also misguided and dangerous because it serves to reinforce incremental thinking and Internet infrastructure disparities that have plagued the nation for a generation. It's also unrealistic to expect local governments to shoulder the financial burden as they continue to deal with the adverse impacts of the 2008 economic downturn and are strapped to fix crumbling roads, schools, sewer and water infrastructure and fund enormous public pension obligations.

If it is to realize the full value of the Internet, the United States should instead adopt a bold, wholistic and robustly funded national Internet infrastructure initiative to bring fiber infrastructure to all homes, businesses and institutions.

4G wireless broadband seen as potential game changing technology

Fourth generation (referred to as 4G or LTE--Long Term Evolution) wireless service expected to be deployed between 2010 and 2012 has the potential to be a game changer for IP-based advanced telecommunications services. The GSM Association (GSMA) predicts the technology will be able to provide 100 Mbps broadband connections, rivaling the throughput of fiber optic wireline services such as Verizon's FiOS, according to a report published this week in mobile news. The big questions of course are whether and when it can.

Blair Levin, an analyst with Stifel Nicolaus and a reportedly a rumored Federal Communications Commission nominee in an Obama administration, apparently thinks 4G will alter the playing field in broadband, telling this week's CoBank Communications Industry Executive Forum in Colorado that it has the potential to dramatically expand the cannibalization of wireline-based connections. That means people will not only ditch their voice landlines as they have in droves over the past few years, but also their cable and DSL-based broadband services since 4G's speeds will surpass these and at least approximate the 50Mbs throughput of pure fiber plays offered by Verizon, SureWest Communications and others.

But once again, 4G's broadband capabilities remain speculative and no one yet knows if 4G can really deliver on its potential and whether its costs can support a business model allowing it be be widely offered in the same footprint currently covered by existing 3G wireless services, which in some areas without wireline-based services is the sole terrestrial broadband option. Additionally, 4G must overcome the high latency that can render 3G connections decidedly less than snappy.

Meanwhile, the Sprint and Clearwire predict with expected regulatory approval by year end, their WiMAX rollout will leapfrog 3G and offer a technologically superior alternative with better range. Longer range translates into fewer transmission towers and lower latency. Not only does WiMAX's longer range make it more suitable for less densely populated areas, it also reduces the need for fiber backhaul -- less widely available outside of metro areas -- since there will be fewer transmission sites to feed.

Looking ahead over the next several years, it appears likely the U.S. wireless broadband market will bifurcate with 4G/LTE-based systems run by the big telcos like AT&T and Verizon dominating in metro areas and WiMAX and WiMAX players such as Sprint/Clearwire taking control at the fringes and outside of metro areas.