Many industrialized nations barely keeping up with Internet throughput demand

A survey by router maker Cisco Systems out today reports many industrialized nations are barely able to provide their residents broadband connections that are capable of robust interaction with Internet content and applications.

According to the survey, that minimum standard is an asymmetrical connection of 3.75 Mbps on the downside and 1 Mbps for uploads -- with latency of no more than 95 milliseconds. However in just three to five years, burgeoning Internet content and applications will require download speeds of 11.25 Mbps and uploads of 5 Mbps even lower latency -- 60 milliseconds or less.

These numbers are sobering and starkly illustrate how fast broadband throughput demand is outstripping capacity, pointing to the need for a major overhaul of the current telecommunications infrastructure. What's more, many in the U.S. where Cisco is based, for example, can't even get throughput anything close to what the survey considers necessary for a decent Internet experience.

Senate Commerce Committee Sets Broadband Hearing

Broadcasting & Cable reports today that the Senate Commerce Committee scheduled a full committee hearing Sept. 16 on the benefits of broadband.

Extending broadband to underserved areas is one of the priorities of a Democratic administration, according to the recently approved Democratic platform, which pledged that the Democrats will "implement a national broadband strategy … that enables every American household, school, library and hospital to connect to a world-class communications infrastructure."

The hearing, "Why Broadband Matters," will examine various areas, including access to government information, education, jobs and telemedicine.

Misgivings in Maryland over Verizon FiOS reach

Charles County, Maryland commissioners are concerned a franchise deal the county is finalizing with Verizon to install Verizon's proprietary FiOS fiber optic cable in county rights of way won't serve the county's telecommunications needs.

SouthMdNews.com reports:

‘‘I want to know how we’re improving what we [have] now,” said commissioners’ President F. Wayne Cooper (D). He compared the pending Verizon deal to that of a builder making big promises in order to secure approval for a small project.

‘‘This sounds an awful lot like ‘let me build the retail now, and I’ll build the offices later.’”

Again, staff was reluctant to discuss the details of the Verizon agreement on the record. However, Rick Elrod, the county’s consultant for the Verizon deal, admitted that the Verizon project being discussed would not be as broad as the commissioners would like.

Sounds like the commissioners need to consider alternatives such as open access fiber lest they end up with angry constituents due to the limitations of the proposed Verizon FiOS project.

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.

Go suck a satellite, AT&T spokesman reiterates

AT&T's marketing slogan "Your world delivered" should be followed by a huge asterisk directing readers to fine print that states:

* Provided you reside in our world, which may or may not exist in this or other dimensions, parallel universes or those comprised of dark matter and/or energy.

An AT&T spokesman drove home the point this week, telling the Eureka (Calif.) Reporter “People choose to live where they choose to live. (How profound) We have a broadband solution for everybody in areas where it’s not feasible to stretch the wireline network via satellite.”

In other words, "Your world isn't necessarily our world and if it's not, we're sorry, you'll just have to go suck a satellite." However, that's hardly a good option as some local residents quoted in the Reporter article note, pointing to its slow and less than reliable connections and high costs that make it more suitable for remote Arctic regions than the lower 48 states.

Connie Davis, a Web-based business owner and treasurer of the Hoopa (Calif.) Association, has the right idea when it comes to countering the big telco's lackadaisical stance. Davis says people cannot look to large telcos or even their local governments for help (the latter hardly surprising given California's difficulty in keeping both state and local govenment functioning these days) getting broadband. They must take matters into their own hands at the grass roots level and most importantly, think outside the box. Moreover, Davis has no time for delaying games packaged as "studies" of broadband availability and demand. "We don’t need to do studies," Davis says. "We don’t need to talk about this. We just need to do it because we need it.” I couldn't have said it better myself, Connie.

I hope the millions of folks stuck in broadband black holes throughout the U.S. follow her advice and form fiber optic and wireless cooperatives they can control and operate rather than leaving themselves at the mercy of big telcos and cable companies who are about as responsive to their needs as the former Soviet phone company.

Telecompetitor: Telcos should offer complementary wireline and wireless broadband to residential customers

Telecompetitor is out with analysis today that warns wireless services that have been cannibalizing first tier telcos' landline voice subscriber base also pose a threat to their wireline broadband services.

Telcos can ameliorate the threat, telecompetitor suggests, by segmenting their residential broadband offerings into two complementary products: A wireline-based broadband "heavy" connection featuring fast throughput and a broadband "lite" wireless service delivered via their 3G and, later, 4G, cellular system-based service.

Service that will seamlessly extend the broadband experience, both inside and outside of the home, is "quite compelling," telecompetitor concludes, pointing to a Nielsen Mobile study released Tuesday that found wireless broadband access cards while originally targeted at mobile users are increasingly popular among fixed residential users.

Although it makes sense on its face, this strategy is currently flawed insofar that it assumes telcos are already providing robust wireline broadband connections to residential customers who can get them. That's hardly the case for most residential customers whose DSL connections typically max out at 3 Mbs and often at slower speeds very close to current 3G cellular wireless broadband throughputs. (I omit AT&T's U-Verse and Verizon's FiOS services since they're available to only a small fraction of their residential customer bases.)

The rise in fixed residential use of 3G cellular broadband connections discovered by Nielsen Mobile is likely being driven by the lack of wireline-based broadband offerings. As this blog reported a few months back, some telcos such as Verizon Wireless have picked off AT&T residential customers in the many areas where AT&T has neither wireline nor terrestrial wireless-based broadband offerings. That strategy also gives Verizon the opportunity to cross sell its cellular voice plans to AT&T customers and build brand loyalty.