Thursday, July 30, 2009

California local governments, nonprofits eligible for 90% broadband stimulus subsidization

California local governments and nonprofit entities that can successfully navigate the complex, 121-page set of rules governing the first round of grants providing up to 80 percent subsidization of broadband infrastructure build outs under the National Telecommunications and Information Administration's Broadband Technology Opportunities Program -- and do so in the just two weeks remaining before the Aug. 14 application deadline -- could get as much as 90 percent of their project costs subsidized.

To leverage the federal broadband stimulus funds, the California Public Utilities Commission had previously approved an order expanding its subsidy program for broadband infrastructure, the California Advanced Services Fund, to provide up to half of the 20 percent match required of regulated telecom providers proposing BTOP projects.

Expanding the CASF funding to include local governments, telecom cooperatives and other non commercial providers required legislative authorization. Gov. Arnold Schwarzenegger signed the legislation, AB 1555, into law July 29. An urgency measure, the bill takes effect immediately.

It remains to be seen if any such projects will be proposed given BTOP rules that make it difficult to qualify projects and give incumbent providers effective veto power, particularly in areas deemed "underserved" under the guidelines.

Jump in online video calls for higher FCC minimum broadband definition

PC Magazine reports this week on a survey by the Pew Internet & American Life Project that found the percentage of adults who watch video online has nearly doubled since 2006, up to 62 percent versus 33 percent in December 2006.

The item underscores the inadequacy of the current minimum definition of broadband of at leasat 768 Kbs download standard adopted by the U.S. Federal Communications Commission, which has also been written into the rules governing the disbursement of $7.2 billion in federal economic stimulus funds for broadband infrastructure. That speed isn't going to hack it for video, which most observers agree is the fastest growing form of online content.

The 768 Kbs standard also represents a huge step down from the speeds Congress contemplated in a January draft version of the American Recovery and Reinvestment Act as minimally defining wireline broadband of at least 5 Mbs download and 1 Mbs uploads and 45 Mbs on the downside and 20 Mbs up for "advanced" wireline broadband.

Under the stimulus legislation, the FCC is required to develop a national broadband plan and present it to Congress next February. The agency should dispose of its outdated definition of broadband and instead adopt the minimum standards outlined in the draft stimulus legislation as they are better matched to meet the growing bandwidth requirements of online video.

Wednesday, July 29, 2009

U.S. broadband stimulus rules favor telco/cable duopoly, turn back clock to 1998

Take a look at Christopher Mitchell's critique of the Notice of Funds Availability (NOFA) issued at the beginning of the month by the National Telecommunications and Information Administration (NTIA) for the first round of grants and loans to subsidize broadband infrastructure allocated in the American Recovery and Reinvestment Act (ARRA).

Mitchell's complaint is rather than getting the United States on a path toward upgrading its obsolete copper-based telecommunications infrastructure to modern fiber optic-based networks owned by local governments and community-based organizations, the rules instead instead favor incumbent private sector providers and effectively revert to the status quo of a decade ago. That's directly at odds with the intent and language of the ARRA, Mitchell asserts, suggesting the rules will require additional future government subsidies since they encourage construction of on the cheap, technologically obsolete telecom infrastructure in a race to the bottom rather than the top.

Here's an excerpt from Mitchell's How the NTIA Dismantled the Public Interest Provisions of the Broadband Stimulus Package:
NTIA has charted a path to bring the slowest networks to people who live in areas that are the most uneconomical to reach. Rather than doing it right the first time (i.e. a strategy that starts with modern speeds and identifies an upgrade path moving forward), NTIA’s path will likely expand 1998-era networks, certainly requiring future appropriations to bring residents to networks with contemporary speeds.

Tuesday, July 28, 2009

Mixed messages inside a broadband black hole


Life can be odd inside a broadband black hole where the normal laws of logic and common sense get twisted and break down.

Consider, for example, today's mail delivery. It contained the contradictory mix of 1) A letter soliciting Comcast Business Class service, a $79/month bundle of "business class Internet up to 4 times faster than DSL." (Query: how can it be compared to a nonexistent service -- no DSL here) and 2) A big postcard from HughesNet addressed to "DIAL UP INTERNET HOUSEHOLD" inviting me to suck a satellite to get speeds "50X FASTER than dialup." (Thanks but I'll pass).

Two direct mail solicitations: One from a provider that can't deliver what it pitches (Comcast) and another selling a costly, latency larded service (HughesNet) that could be more aptly dubbed MolassesNet.

Somehow these companies don't have their marketing campaigns straight. It's no wonder the government wants to map broadband availability because apparently the providers themselves are confused.

After 13 months, persistent Firefox/My Yahoo! bug finally squashed

After nearly 13 months -- longer than the lifespan of most biological insects -- a persistent bug in the interaction of the Firefox browser and the My Yahoo! home page has finally been squashed. This blog first wrote about the issue last September, which surfaced when Yahoo did a forced upgrade to a new home page.

The problem: when Firefox users clicked on an article on the home back and then attempted to navigate back to their My Yahoo! home page, they would lose their place on the home page which would reset to the top of the page. They then had to scroll down the page to find where they left off, making for a very kludgy browsing experience.

With the recent release of the latest version of the browser, Firefox 3.5, the problem appears to have been finally resolved.

Monday, July 27, 2009

U.S. residential DSL access shows no gain since 2006


U.S. residential DSL availability in the first half of 2008 continued to show no increase since it virtually hit the wall in 2006, with about a fifth of the nation still unable to access it.

That's pretty much the same story reported on this blog back in January based on Federal Communications Commission data covering the previous six-month period of July to December 2007. Readers can see for themselves by looking at the first column of Table 14 in the latest FCC report on Internet access released last week.

The same states continue to rank low on residential DSL access, including Vermont, Virginia, New Hampshire, Maine Michigan, Mississippi, Maryland and New York. The FCC withheld DSL availability for some states including Delaware, Massachusetts, Rhode Island, and Hawaii citing "firm confidentiality."

This redaction and other mechanisms to obfuscate where broadband infrastructure deployment exists and where it doesn't are increasingly cropping up at a time when government initiatives to increase broadband access demand greater transparency. It will be interesting to see how federal and state governments resolve this fundamental conflict.

Tuesday, July 21, 2009

Memo to RUS and NTIA: Proposed revisions for broadband stimulus funding rules

The two agencies administering rules governing the disbursement of $7.2 billion of grants and loans for allocated for broadband infrastructure construction in the American Recovery and Reinvestment Act -- the Rural Utilities Service and the National Telecommunications and Information Administration -- should revise the guidelines as follows:

1. Liberalize the rules to encourage consumer telecom cooperatives, recession ravaged local governments and small local fiber providers to propose projects. While the guidelines for the first round of applications issued July 1 allow up to five percent of application preparation costs (e.g. infrastructure engineering, development of minimum 5-year business plan) to be awarded in grants and/or loans, only projects accepted for funding can get these substantial costs credited back. This creates sizable up front risk and funding hurdles that discourage infrastructure builds by non-incumbent entities and providers. Revise the guidelines to include loan guarantees for engineering and business planning for projects that demonstrate good faith, diligent planning work. Doing so will encourage more projects and also help weed out those that seem like a good idea but won't pencil out.

2. Don't require non incumbent providers to be census takers and go door or door to document the level of broadband availability and adoption in census blocks comprising their proposed projects. That's a job for the Census Bureau and introduces cost and delay that are contrary to the stimulus funding goal of rapid deployment of broadband infrastructure.

3. Lose the broadband black hole preservation provision in the current rules that allows incumbent providers to challenge proposed projects. Also trash a provision in the definition of "underserved" areas deeming these areas as such if no wireless provider merely advertises service with at least 3MBs download connectivity. Both of these provisions will only introduce delay and may lead to litigation that's at cross purposes with the speedy build out of broadband infrastructure.