Monday, March 17, 2014

Telecom Giants Drag Their Feet on Broadband for the Whole Country - Newsweek

Telecom Giants Drag Their Feet on Broadband for the Whole Country - Newsweek

Of course they drag their feet; it's their fiduciary duty to shareholders to do so. This story spotlights the inherent conflict in relying on the private sector alone to construct telecommunications infrastructure needed by a much larger constituency: the American public.

Despite their claims of having invested billions in telecom infrastructure, investor-owned telcos simply don't have enough cash to finance the transition of their networks from the old, copper POTS (Plain Old Telephone Service) cables to modern, fiber optic-based networks. Given that circumstance, they are leaving the old networks in place throughout most of their service territories. But since these networks are decades old and require a lot of costly maintenance, telcos are asking regulators to relieve them of the duty to maintain them to ensure every premise can get telephone service, sparking consumer push back.

Wednesday, March 12, 2014

Tuesday, March 11, 2014

Iowa governor sets goal of universal premise Internet service

Iowa Poll: Aid for broadband gets Iowans' OK | The Des Moines Register | desmoinesregister.com: While adoption and satisfaction are relatively high, Gov. Terry Branstad’s Internet expansion initiative aims for 100 percent.

“The governor’s bill is titled the ‘Connect Every Iowan’ bill, not ‘Connect Some Iowans’ or ‘Connect a majority of Iowans,’ ” said Adam Gregg, the governor’s lobbyist. “... We want to encourage ubiquitous access all throughout the state.”
This should be a goal for every state. But setting a goal without a realistic plan to reach it will only produce disappointment. Branstad's plan for getting there is based on providing tax incentives to spur the construction of necessary infrastructure. Problem is tax incentives alone cannot overcome market failure -- when there is insufficient economic incentive to invest in infrastructure reaching every home and business. To reach that goal, Iowa and other similarly situated states would have to form and fund state Internet infrastructure authorities to subsidize municipal networks and telecommunications consumer cooperatives.

Since states adjacent to Iowa tend to also suffer from market failure that leaves many of their residents off the Internet grid, Bradstad might also consider negotiating a compact with these states as he is currently doing for the health insurance exchange marketplace to form a regional Internet infrastructure authority. The very fact the Bradstad is acting on this issue in Iowa points up the deficiencies in U.S. federal government policy that leaves many Americans in Iowa and other states with less than universal premise Internet access.

Friday, March 07, 2014

Broadband Spring emerges in Tennessee

Tennessee Legies Go Into Pro-Public Broadband Frenzy | Building the Gigabit City

Craig Settles reports on what appears to be the start of what I'm calling "Broadband Spring," powered by a decade of frustration and pent up demand to modernize telecommunications infrastructure to fiber to the premise architecture -- along with the realization that legacy incumbent telephone and cable companies are part of the problem and not part of the solution to getting that infrastructure in place.

This development could represent a tipping point where the public interest of modernizing the U.S. telecommunications infrastructure to fiber to the premise is outweighing the private interest of the legacy providers. It would be a welcome thaw after a 10-year-long winter of recession and failed public policy that has stood in the way of moving forward with this critical infrastructure.

Thursday, March 06, 2014

Resolution Seeks High-Speed Internet For All Putney Residents | Vermont Public Radio

Resolution Seeks High-Speed Internet For All Putney Residents | Vermont Public Radio: “The governor made us a promise at town meeting here last year that he would get everything wired 100 percent, no ifs, ands or buts,” Field says. “I’ve got the quote.”

Instead, area lawmakers got an earful from residents who say they’re tired of hearing that Putney already has Internet service.

"Close to 300 of us in Putney only have dial-up," says Field. "In my case I pay $80 a month to Hughes.net. Can’t Skype, can’t stream anything. My wife’s a pediatrician in town. She can’t do her electronic medical records."

Nancy Braus says people on her road are getting Internet from Comcast or Fairpoint. But not her house. Braus has a daughter who’s deaf.
A couple of observations on this story:
  • It's an example of the blow back politicians face after years of promises to address deficiencies in premises wireline Internet service with little or no tangible results.
  • Ms. Braus's comment illustrates the highly granular nature of broadband redlining that renders government subsidy programs based on mapping and funding only "unserved" and "underserved" areas impractical. One address is offered service by incumbent wireline providers while another nearby premise is not.

Wednesday, March 05, 2014

U.S. Internet policy fails expectation of universal premise service

For nearly every American who has been alive since the end of World War II, the availability of telephone service at a home or business premise is taken for granted. Need a phone line or several lines? Contact the phone company, order them and they’ll get hooked up.

With wireline premises Internet service, it’s been a very different story. According to the U.S. Federal Communications Commission as of 2012, 19 million Americans couldn’t order an Internet connection because none was available for sale. Some of those Americans live in California’s Gold Country, located in the western foothills of the Sierra Nevada. And they can’t understand why if people in Sacramento -- or in many cases just down the road -- can get wireline Internet service, why can’t they? Plus they hear messages like this one that only five percent or fewer premises are unserved and have a hard time believing their home or business is one of them, particularly when nearby premises do have service.

It’s therefore unsurprising that “[m]any residents without access feel a sense of entitlement to broadband (Internet) service,” according to the Gold Country Broadband Consortium’s annual progress report. The consortium is among 14 regional consortia formed by the California Public Utilities Commission in 2011 to promote local Internet access and adoption of Internet-delivered services.

Unfortunately, neither California as the largest state nor the nation as a whole has a public policy to meet the expectation that Internet service in 2014 should be as ubiquitous as telephone service. Nor as the case with telephone service is there a workable subsidy program to ensure high cost areas are served.