AT&T slows Project Lightspeed/U-Verse deployment

AT&T will decelerate build out of its hybrid fiber/copper Project Lightspeed infrastructure that delivers the telco's bundled U-Verse offering, TelephonyOnline reports today.

The publication cites comments by AT&T executives in a conference call Tuesday discussing the company's Q4 2008 earnings and citing Lightspeed/U-Verse as a drag on profits.

Under the scaled back deployment, AT&T has decided to delay its goal of passing 30 million homes from 2010 to 2011, according to TelephonyOnline, and concentrate on the former BellSouth territory in the southeastern U.S. AT&T acquired in late 2006.

Last month, AT&T also pushed back the deployment of VDSL copper pair bonding technology to extend the severely limited range and throughput of U-Verse. The new target date is sometime this year, the second delay after a planned late 2007 deployment was scrapped.

Unclear on the concept

The National Cable & Telecommunications Association is creating a 22,000-square-foot main street-themed exhibit space that it says will be the centerpiece of its exhibit floor. The exhibit will demonstrate "The many ways in which high-speed broadband service has and will continue to improve the lives of Americans."

The effort, announced Tuesday, matches the centerpiece that broadband deployment has become in the new Obama administration's economic stimulus package.

It also comes as Congress is debating how to dole out over $8 billion in grants for broadband. Satellite operators are fighting for their share of the money, arguing that satellite-delivered broadband will be the only way to reach some rural enclaves.

Like those rural areas on the edge of the Arctic Circle? Talk about unclear on the concept. I think I'll launch some of those digital dirigibles and apply for funding too. And let's not leave out BPL while we're at it.

Congress should reject telco whining over broadband requirements in economic stimulus measure

Economic stimulus legislation on a congressional fast track that would allocate $6 billion (House version) and $9 billion (Senate version) for broadband telecommunications infrastructure build out to underserved areas is unsurprisingly eliciting whining from the big telcos.

Industry representatives and think tanks that front for them complain the measures' minimum connectivity speed requirements for wireline and wireless service to underserved areas as well as open access requirements would not dispose them to applying for broadband infrastructure grants, loans and loan guarantees.

What they want instead are tax breaks just as telcos received under the 1996 Communications Act that was to have brought broadband to all Americans in a decade's time. Bottom line: business as usual. Continued proprietary (and geographically limited and underpowered) DSL access over crappy, aging (depreciating from the telcos' perspective) copper cable, maintaining wireless Internet connectivity at or below the less than impressive capabilities of current deployments and continuing to tell millions of Americans to go suck a satellite or live in dial up purgatory.

Congress should reject these whiners that have led the U.S on a race to the bottom when it comes to advanced IP-based telecommunications services. The telcos propagated a broadband boondoogle with the 1996 Communications Act. Broadband access is too important to allow them to repeat the fiasco.

Maintaining open access requirements in the stimulus legislation will assist local governments and citizens by providing seed funding to form their own fiber cooperatives. That will allow them to break free of the telco/cable duopoly that has failed to provide them adequate broadband access for their current and future needs.

Tax cuts, expanded NTIA funding for broadband proposed

Provisions of economic stimulus legislation rapidly moving through Congress could be expanded to include tax cuts and tripling the amount of grants for broadband infrastructure.

Bloomberg reports today U.S. Senator Jay Rockefeller (D-West Virginia) will propose tax credits to encourage telephone, cable and wireless companies to expand broadband access. The Bloomberg item also states the Senate Appropriations Committee wants $9 billion for broadband grants administered by the National Telecommunications and Information Administration (NTIA), compared to $3 billion in the House Appropriations Committee's version of the stimulus legislation.

The broadband provisions of the economic stimulus measure will likely undergo more revisions before the bill reaches President Barack Obama, who has called for its enactment by mid February to shore up a flagging U.S. economy.

President Obama reiterates need for broadband infrastructure in weekly radio address

President Barack Obama mentioned the expansion of broadband telecommunications infrastructure in his weekly radio address today urging swift enactment of the American Recovery and Reinvestment Act of 2009. The measure, which cleared Congressional committees this week on track for passage by mid-February, includes $6 billion in grants and loans to finance broadband build out.

Here's the relevant passage from the president's address:

Finally, we will rebuild and retrofit America to meet the demands of the 21st century. That means repairing and modernizing thousands of miles of America’s roadways and providing new mass transit options for millions of Americans. It means protecting America by securing 90 major ports and creating a better communications network for local law enforcement and public safety officials in the event of an emergency. And it means expanding broadband access to millions of Americans, so business can compete on a level-playing field, wherever they’re located.

The challenge facing WISPs

While fixed terrestrial wireless Internet service providers (WISPs) are well situated to pick up where DSL has derailed on the route to fiber to the premises (FTTP), their major challenge going forward is to provide users decent connectivity at an attractive price point. Especially as consumers and businesses become more frugal in the current economic contraction.

The challenge is evident in the case of one WISP that recently expanded into your blogger's area of El Dorado County, California. When I mentioned Central Valley Broadband in a Dec. 3, 2008 post, the WISP was offering 3 Mbs service to telco neglected SOHOs (Small Office/Home Office) at a relatively appealing monthly rate of $60.

According to the company's Web site, that's no longer the case. Now its best business plan offers 2 Mbs down and 1 Mbs up -- at the much higher price of $130 a month. A lower priced business plan at $90 a month provides throughput of 1 Mbs down and 512 Kbs up.

While some SOHOs might be willing to pay that price, it's likely to give pause to others and limit the company's growth prospects in the SOHO segment. Additionally, neither of these nominally businsess grade plans meet the minimum wireless connectivity standards of 3 Mbs down and 1 Mbs up established for California Advanced Services Fund subsidies or for grant funding under federal economic stimulus legislation curently making its way through Congress. Nor do any of the company's consumer plans, which start out at $40 a month for 512 Kbs down and 256 Kbs up and go up to $90 a month for 1.5 Mbs down and 1 Mbs up. The latter plan might barely support video downloads depending on the latency. But even if it proves adequate, late adopter residential users currently on dial up aren't likely to be motivated to pay nearly 100 bucks a month in order to watch YouTube and NetFlix video at minimum recommended throughput.

For WISPs hoping to pick up significant numbers of customers in the years before FTTP is widely established (and be perceived as a superior alternative to the crippled and costly connectivity of satellite Internet) their challenge is to offer services with both decent throughput and attractive pricing. Otherwise their growth prospects are severely constrained and self limiting.

FCC data show DSL availability hit wall in 2006; nearly 20 percent of U.S. homes continued to lack access in 2007

Newly released data show U.S. telco DSL availability hitting the wall in 2006 with virtually no increase during 2007. The data are contained in Table 14 of the Federal Communications Commission's semi-annual report on broadband deployment as of Dec. 31, 2007.

The data show show the percentage of residences that can get DSL from their telcos during the last half of 2007 -- about 80 percent averaged among all states -- barely budging compared to all of 2006. That leaves about 20 percent of telco customers stuck with circa early 1990s dial up or the substandard option of satellite Internet, a technology more appropriate for the Alaskan frontier than the lower 48 states.

That telco DSL availability showed virtually no increase over 2006 and 2007 starkly illustrates that DSL provided by incumbent telcos over copper cable is a failed technology for delivering high speed Internet access to Americans that should be abandoned in favor of fiber optic-based telecommunications infrastructure.

As with previous versions of the semi-annual reports required by the Telecommunications Act of 1996, the same states remain in the cellar measured on lack of telco DSL access including Vermont (31 percent), Virginia (35 percent), New Hampshire (38 percent), Maine (31 percent), Michigan (29 percent), Mississippi (28 percent), Maryland (25 percent) and even New York (24 percent). DSL availability exceeded 90 percent or greater in just two states, Georgia and California.

Government funded info tech, telecom spending as potential economic elixir

This item in today's L.A. Times paints a bleak outlook for the U.S. economy during Barack Obama's four-year presidential term that begins tomorrow. Additionally, investment in information and telecommunications technology has remained weak since the 1999 dot com bust and the 2001-02 recession, the article notes, suggesting goverment spending in this sector could help stimulate the overall economy.