[Here is a good example of how the concept of open condominium fiber infrastructure, pioneered by the R&E network community enables deployment of lower cost broadband deployment, facilities based competition and new business models for helping reduce GHG emissions. As I pointed out in a previous post forward thinking carriers like Swiscom and KPN understand the business value of open condo fiber muni networks and the potential for radical new business models such as free fiber (http://free-fiber-to-the-home.blogspot.com/) to the home and homes with tails. See also talks by Benoit Felten on this subject. Thanks to Kátrin Schweren for this pointer – BSA]
Last Wednesday, Swisscom has announced its first cooperation that will enable joint roll out of multi-fiber FTTH.
The canton of Fribourg, Groupe E, the Swiss French electricity producer and supplier, and Swisscom are to work hand in hand on the construction of a fibre-optic (FTTH) access network. The partnership aims to reduce costs for both companies and to offer every interested service provider the opportunity to use the infrastructure, therefore avoiding duplicate investments. It consists of setting up a single multi-fibre access network within an existing underground infrastructure and will allow a healthy level of competition in the area of networks and telecommunications services. Groupe E and its energy provider partners will develop energy-related services with the aim of achieving energy efficiency. The canton of Fribourg is clearly following its „High Tech in the Green" strategy by supporting this project which will make the canton more attractive in both urban and rural areas. This is the first collaboration between an electricity company, an operator and a canton in Switzerland.
Please find attached the press release
as well the link to it.
http://www.swisscom.com/GHQ/content/Media/Medienmitteilungen/2009/20090325_MM_Glasfasernetz.htm Deutsche Präsi:
http://www.swisscom.com/NR/rdonlyres/C3656A92-3A51-4283-9AE3-DB46CF46CDC6/0/20090325_Praesentation_Swisscom_de.pdf
Benoit Felten talk
http://feedproxy.google.com/~r/typepad/fiberevolution/~3/2blbBndRDz0/open-access-makes-economic-sense.html
Monday, March 30, 2009
Monday, March 9, 2009
The Importance of Next Generation Networks for job creation
[Here is a good report on all the future applications and job creation that will be enabled by next generation networks. However, this glorious and wonderful future will not come into reality unless we solve the problem of the business case for next generation broadband deployment and a more competitive marketplace. As long ago as August 1993, Scientific America pointed out that it is NOT new applications that drive demand for broadband but competition driving down prices. The Scientific America article demonstrated that it was the price of telecommunications technology in terms of average per capita income that drives demand and its competition that achieves this price reduction. The PC is a good example of a technology has thousands of wonderful applications, and will continue to do so, but the PC only became widespread once its price became affordable as a result of competition from manufacturers around the world. The opposite situation happened with the telephone, where it took 75 years to reach 50% penetration of homes, because historically it has been very expensive technology as a percentage of average annual income due to its monopoly position in the marketplace.
Some countries like Greece, Switzerland, The Netherlands are starting to understand the importance of providing competition by deploying passive fiber infrastructures throughout their countries with multiple home run fiber strands to every home to enable access by multiple competitors and new business models such as homes with tails, Green broadband etc. Even some carriers such as KPN and Swisscom are starting to understand the importance of this architecture and business model and are beginning to endorse it, as it is the only way that we can cost effectively roll out next generation broadband.
There were several good presentations on this new business model from Greece, Netherlands and Switzerland at the recent Fiber to the Home Council meeting in Europe. Unfortunately the FFTx council has decreed that you need a password to access these documents. – BSA]
The European Fiber to Home Council Meeting - Cophenhagen
http://www.conference.ftthcouncil.eu/
KPN joins Amsterdam CityNet in extending its open FttHnetwork
http://www.trouw.nl/digitalekrant/TR/20090204___/1_012/article4.html
New Report Takes Broadband Beyond Stimulus Debate Next-Generation Networks, More Speed, Key to Growth
Cites Potential for 2 Million Jobs
http://www.itif.org/index.php?id=231
A new report says next-generation networks capable of providing much faster Internet access are needed to provide the next level of services and applications to consumers.
Released today by the Information Technology & Innovation Foundation, “The Need for Speed: The Importance of Next-Generation Broadband Networks” identifies the economic and societal benefits of high-speed broadband, as well as policies needed to encourage further expansion.
“Supporting the widespread deployment of next-generation broadband Internet will enable the emergence of a whole host of online applications and services, many of which we can barely imagine today, that will increase quality of life and boost economic growth,” the report finds.
“The true potential of the next generation broadband network lies in the transformative new functionalities it enables and the innovative Web-based applications it supports.”
The study finds that broadband deployment has the potential to create or save two million jobs for American workers over the time period in which that deployment occurred, further emphasizing the importance of national broadband deployment.
“This report shows us that deploying next generation broadband networks will have profoundly positive benefits for consumers, businesses, academic institutions and society in general,” said ITIF President Robert Atkinson. “Deploying next generation broadband to 80 percent of U.S. households that currently lack it can bring the needed economic stimulus by ensuring approximately two million American jobs.”
The report emphasizes that there is a role for proactive public policies to encourage investment in next-generation broadband networks, such as more favorable tax treatment for such investments.
Some countries like Greece, Switzerland, The Netherlands are starting to understand the importance of providing competition by deploying passive fiber infrastructures throughout their countries with multiple home run fiber strands to every home to enable access by multiple competitors and new business models such as homes with tails, Green broadband etc. Even some carriers such as KPN and Swisscom are starting to understand the importance of this architecture and business model and are beginning to endorse it, as it is the only way that we can cost effectively roll out next generation broadband.
There were several good presentations on this new business model from Greece, Netherlands and Switzerland at the recent Fiber to the Home Council meeting in Europe. Unfortunately the FFTx council has decreed that you need a password to access these documents. – BSA]
The European Fiber to Home Council Meeting - Cophenhagen
http://www.conference.ftthcouncil.eu/
KPN joins Amsterdam CityNet in extending its open FttHnetwork
http://www.trouw.nl/digitalekrant/TR/20090204___/1_012/article4.html
New Report Takes Broadband Beyond Stimulus Debate Next-Generation Networks, More Speed, Key to Growth
Cites Potential for 2 Million Jobs
http://www.itif.org/index.php?id=231
A new report says next-generation networks capable of providing much faster Internet access are needed to provide the next level of services and applications to consumers.
Released today by the Information Technology & Innovation Foundation, “The Need for Speed: The Importance of Next-Generation Broadband Networks” identifies the economic and societal benefits of high-speed broadband, as well as policies needed to encourage further expansion.
“Supporting the widespread deployment of next-generation broadband Internet will enable the emergence of a whole host of online applications and services, many of which we can barely imagine today, that will increase quality of life and boost economic growth,” the report finds.
“The true potential of the next generation broadband network lies in the transformative new functionalities it enables and the innovative Web-based applications it supports.”
The study finds that broadband deployment has the potential to create or save two million jobs for American workers over the time period in which that deployment occurred, further emphasizing the importance of national broadband deployment.
“This report shows us that deploying next generation broadband networks will have profoundly positive benefits for consumers, businesses, academic institutions and society in general,” said ITIF President Robert Atkinson. “Deploying next generation broadband to 80 percent of U.S. households that currently lack it can bring the needed economic stimulus by ensuring approximately two million American jobs.”
The report emphasizes that there is a role for proactive public policies to encourage investment in next-generation broadband networks, such as more favorable tax treatment for such investments.
Thursday, January 29, 2009
Competition most important tool to increase broadband deployment
[Here are a couple of good pointers on why competition may be the most important tool to increase broadband deployment. As far back as August 1993 in an article in Scientific American, it was noted that competition was the main driver for the rate of adoption of many technologies from basic telephony to the PC computer. In that article they compared the rate of adoption of the telephone versus cable, VCR, PC etc. The telephone took over 75 years to reach 50% penetration, while cable TV took 35 years and the PC and VCR less than 15 years. There was a clear correlation between the average cost as expressed in per capita income of these technologies and their rate of adoption. And of course what drove down cost was competition. Where there was lots of competition – PC and VCR, prices dropped and adoption rates skyrocketed. Where there was no competition, as in the case of telephone monopoly, prices and adoption declined very slowly. Excerpts from Scott Bradner’s column and posting by Dirk van der Woude on Gordon Cooks excellent Arch-Econ list – BSA]
http://www.networkworld.com/columnists/2009/012709-bradner.html?fsrc=rss-columns
Obama's broadband stimulus: throwing money at wrong target?
[…]
The Pew Internet & American Life Project just published the results of two surveys on Internet connectivity it ran over the last year. This report shows that not all that many people are blocked from getting broadband Internet access because it is not available in their area. There is no question that there are big parts of the country where broadband access cannot be obtained unless you are willing to use a satellite service. It is hard to tell in how much of the country this is true because of the poor statistics the FCC has been collecting. (See "All's well with U.S. broadband deployment (says FCC).")
The Pew report says that some people (more than 15%) have no interest in getting online. Another 6% think the price is too high, and 5% have usability problems. The president's plan is unlikely to change these numbers much.
The current draft of the broadband part of the stimulus package focuses on providing grants to companies that are willing to deploy wireless or wired broadband in underserved areas. The bill mandates open access to any services that result from such grants.
But, if the Pew report is correct, the stimulus money and open access policies might only result in a few percent of additional broadband users in the United States. Figuring out how to get more competition into the picture so that prices could come down might yield a greater return.
[…].
[From posting by Dirk van der Woude]
ECTA, the European Competitive Telecommunications Association, yesterday released the latest installement of its regulatory score card. Good reading and below an interesting quote (pag 12). (Hat tip to 'you know who you are').
"It may be tentatively concluded from these and other results found by analysing data reported in the Scorecard together with July 2008 broadband data reported by the European Commission and OECD that infrastructure and effective access-based competition may complement each other in stimulating high broadband take-up rates, and take-up of higher speed services – both of which are necessary to justify and reduce risks in investments in access upgrades such as FTTH.
The positive relationship between incumbent retail DSL lines and LLU also suggests that the benefits of access regulation through increasing overall take-up of broadband may also enable the incumbent to increase its own take-up rates. Although data is not yet available to assess the effects quantitatively, one might also postulate, following similar logic to unbundling of copper loops, that the take-up of fibre access and higher speed services available over it could be stimulated through unbundling and that such expansion and competition could also facilitate increased demand for the incumbents own fibre services."
Whole report: http://www.ectaportal.com/en/basic651.html
http://www.networkworld.com/columnists/2009/012709-bradner.html?fsrc=rss-columns
Obama's broadband stimulus: throwing money at wrong target?
[…]
The Pew Internet & American Life Project just published the results of two surveys on Internet connectivity it ran over the last year. This report shows that not all that many people are blocked from getting broadband Internet access because it is not available in their area. There is no question that there are big parts of the country where broadband access cannot be obtained unless you are willing to use a satellite service. It is hard to tell in how much of the country this is true because of the poor statistics the FCC has been collecting. (See "All's well with U.S. broadband deployment (says FCC).")
The Pew report says that some people (more than 15%) have no interest in getting online. Another 6% think the price is too high, and 5% have usability problems. The president's plan is unlikely to change these numbers much.
The current draft of the broadband part of the stimulus package focuses on providing grants to companies that are willing to deploy wireless or wired broadband in underserved areas. The bill mandates open access to any services that result from such grants.
But, if the Pew report is correct, the stimulus money and open access policies might only result in a few percent of additional broadband users in the United States. Figuring out how to get more competition into the picture so that prices could come down might yield a greater return.
[…].
[From posting by Dirk van der Woude]
ECTA, the European Competitive Telecommunications Association, yesterday released the latest installement of its regulatory score card. Good reading and below an interesting quote (pag 12). (Hat tip to 'you know who you are').
"It may be tentatively concluded from these and other results found by analysing data reported in the Scorecard together with July 2008 broadband data reported by the European Commission and OECD that infrastructure and effective access-based competition may complement each other in stimulating high broadband take-up rates, and take-up of higher speed services – both of which are necessary to justify and reduce risks in investments in access upgrades such as FTTH.
The positive relationship between incumbent retail DSL lines and LLU also suggests that the benefits of access regulation through increasing overall take-up of broadband may also enable the incumbent to increase its own take-up rates. Although data is not yet available to assess the effects quantitatively, one might also postulate, following similar logic to unbundling of copper loops, that the take-up of fibre access and higher speed services available over it could be stimulated through unbundling and that such expansion and competition could also facilitate increased demand for the incumbents own fibre services."
Whole report: http://www.ectaportal.com/en/basic651.html
Tuesday, December 23, 2008
The $15 billion broadband bonus
[Here is a good paper referenced in the Cook Report that demonstrates the impact of broadband on GDP. While most other studies have done a lot of waving about the impact of broadband, this paper is the most analytical I have seen in some time.
As governments talk about economic stimulus, what this paper demonstrates is that the biggest bang for the buck will probably be in broadband deployment. While digging sewers and building bridges is important, the leveraging of such investments in terms of creating new economic opportunities is nowhere close to that of broadband deployment.
But its also important that we make the right investment in broadband. It cannot and should not reinforce existing duopolies. It must enable a competitive environment and a level playing field. That is how we will maximize innovation and economic leverage.
Brough Turner gives several good example of this type of investment through customer owned networks in a recent talk he gave at Emerging Communications Conference
Slides at: http://www.slideshare.net/eComm2008/brough-turners-presentation-at-ecomm-2008
Audio at: : http://itc.conversationsnetwork.org/shows/detail3719.html
Also FreePress, a national, nonpartisan organization working to reform the media, argues for the same solution for the US through a $5 billion investment to “. An innovative idea that has been successful abroad, this proposal is designed to deploy world class fiber-optic networks which are shared by multiple competitors. This program would award higher levels of investment tax credits and accelerated depreciation to entities that deploy more than a single strand of fiber to an end user for the purpose of selling the fiber to a competitive provider. In addition, the program would allow all taxes on sales of the additional fiber to qualifying third parties to be completely deferred for five years. This approach would spur competition in the broadband market, encouraging demand and innovation
http://www.freepress.net/node/46686
The $15 billion broadband bonus
http://www.kellogg.northwestern.edu/faculty/greenstein/images/htm/Columns/broadband%20bonus.pdf
As governments talk about economic stimulus, what this paper demonstrates is that the biggest bang for the buck will probably be in broadband deployment. While digging sewers and building bridges is important, the leveraging of such investments in terms of creating new economic opportunities is nowhere close to that of broadband deployment.
But its also important that we make the right investment in broadband. It cannot and should not reinforce existing duopolies. It must enable a competitive environment and a level playing field. That is how we will maximize innovation and economic leverage.
Brough Turner gives several good example of this type of investment through customer owned networks in a recent talk he gave at Emerging Communications Conference
Slides at: http://www.slideshare.net/eComm2008/brough-turners-presentation-at-ecomm-2008
Audio at: : http://itc.conversationsnetwork.org/shows/detail3719.html
Also FreePress, a national, nonpartisan organization working to reform the media, argues for the same solution for the US through a $5 billion investment to “. An innovative idea that has been successful abroad, this proposal is designed to deploy world class fiber-optic networks which are shared by multiple competitors. This program would award higher levels of investment tax credits and accelerated depreciation to entities that deploy more than a single strand of fiber to an end user for the purpose of selling the fiber to a competitive provider. In addition, the program would allow all taxes on sales of the additional fiber to qualifying third parties to be completely deferred for five years. This approach would spur competition in the broadband market, encouraging demand and innovation
http://www.freepress.net/node/46686
The $15 billion broadband bonus
http://www.kellogg.northwestern.edu/faculty/greenstein/images/htm/Columns/broadband%20bonus.pdf
Thursday, December 18, 2008
Customer Ownership of the Local Loop: Its Effects on Competition
[Here is an excellent web site on the regulatory and competitive aspects on the advantages of the customer owning the last mile. Although the arguments are couched in terms of telephony service, they equally apply to internet connections as well. Thanks to Alfredo Bregni for this pointer – BSA]
http://pb.freeshell.org/its.html
Full competition in telephony requires the solution of numerous problems, some of which appear truly intractable. This paper deals with three of the most serious difficulties that competition in telephony must overcome: interconnection among local exchange service providers, interconnection between local exchange and interexchange service providers, and the transition from monopoly to competition. This paper shows that customer ownership of the local loop provides an elegant, uniform solution to these problems; it causes each of these problems to virtually disappear. The paper also discusses the likelihood that customer ownership of the local loop will create a competitive loop construction industry. This does not directly solve an obvious problem with competition in telephony, but it is clearly desirable, because it permits loop construction to be demand driven rather than supply driven. The paper concludes with an explanation that customer ownership of the local loop does more than solve several individual problems with competition in the provision of telephony. Rather, it constitutes an elegant, integrated solution to many of the problems with competition in telephony.
For more information also see:
http://free-fiber-to-the-home.blogspot.com/
Google policy paper
Home with tails – what if you could own your Internet connection
http://free-fiber-to-the-home.blogspot.com/2008/11/home-with-tails-what-if-you-could-own.html
http://pb.freeshell.org/its.html
Full competition in telephony requires the solution of numerous problems, some of which appear truly intractable. This paper deals with three of the most serious difficulties that competition in telephony must overcome: interconnection among local exchange service providers, interconnection between local exchange and interexchange service providers, and the transition from monopoly to competition. This paper shows that customer ownership of the local loop provides an elegant, uniform solution to these problems; it causes each of these problems to virtually disappear. The paper also discusses the likelihood that customer ownership of the local loop will create a competitive loop construction industry. This does not directly solve an obvious problem with competition in telephony, but it is clearly desirable, because it permits loop construction to be demand driven rather than supply driven. The paper concludes with an explanation that customer ownership of the local loop does more than solve several individual problems with competition in the provision of telephony. Rather, it constitutes an elegant, integrated solution to many of the problems with competition in telephony.
For more information also see:
http://free-fiber-to-the-home.blogspot.com/
Google policy paper
Home with tails – what if you could own your Internet connection
http://free-fiber-to-the-home.blogspot.com/2008/11/home-with-tails-what-if-you-could-own.html
Tuesday, December 16, 2008
Swisscom to deploy multiple fibers per home to enable competition
[Kudos to Swisscom for recognizing that multiple strands of home run fiber is a far better solution than xPON for delivering future proof broadband. It also enables competitors with new business models such as “homes with tails”. Excerpts from Lightwave. Thanks to Harvey Newman for this pointer—BSA]
Swisscom touts "fibre suisse" project
)
Over the next six years, Swisscom is planning to invest some CHF 8 billion in the Swiss telecommunications and IT infrastructure, with 35% of this sum earmarked for fibre-optic expansion.
To enable potential cooperation partners to expand their own fibre-optic infrastructure after the construction work has started, Swisscom will be laying several fibres per household in all areas. One fibre will be used by Swisscom, while the others will be made available to the cooperation partners. The multi-fibre model will prevent the creation of a new network monopoly in Switzerland and also meet competitors' requirements for full access to the local loop.
At the end of July, Swisscom invited potential cooperation partners from the telecommunications, cable, and utilities industries to work with it on building the fibre-optic network, with the aim of implementing the network more quickly and cost-effectively in conjunction with several partners. Moreover, this collaboration will generate competition among different types of networks, boosting investment and innovation and maximising the benefits for customers and home owners, says the carrier.
While laying several fibres per household entails marginally higher investments, it guarantees competition at the technology and service levels. Limiting fibres to one per household would be impractical, says the carrier, since it would endanger the dynamic nature of the market and the technological innovativeness of the telecommunications industry over the next 30 to 50 years.
Find more FTTx news at /Lightwave/'s FTTx Resource Center.
Swisscom touts "fibre suisse" project
Over the next six years, Swisscom is planning to invest some CHF 8 billion in the Swiss telecommunications and IT infrastructure, with 35% of this sum earmarked for fibre-optic expansion.
To enable potential cooperation partners to expand their own fibre-optic infrastructure after the construction work has started, Swisscom will be laying several fibres per household in all areas. One fibre will be used by Swisscom, while the others will be made available to the cooperation partners. The multi-fibre model will prevent the creation of a new network monopoly in Switzerland and also meet competitors' requirements for full access to the local loop.
At the end of July, Swisscom invited potential cooperation partners from the telecommunications, cable, and utilities industries to work with it on building the fibre-optic network, with the aim of implementing the network more quickly and cost-effectively in conjunction with several partners. Moreover, this collaboration will generate competition among different types of networks, boosting investment and innovation and maximising the benefits for customers and home owners, says the carrier.
While laying several fibres per household entails marginally higher investments, it guarantees competition at the technology and service levels. Limiting fibres to one per household would be impractical, says the carrier, since it would endanger the dynamic nature of the market and the technological innovativeness of the telecommunications industry over the next 30 to 50 years.
Find more FTTx news at /Lightwave/'s FTTx Resource Center
Thursday, November 13, 2008
Home with tails - what if you could own your Internet connection
[If you can, I highly recommend attending this event. As many of you know customer owned networks is a concept I have been advocating for some time. I also believe that such networks can be paid for almost in their entirety, at no cost to the customer, through carbon offsets or voluntary carbon taxes, especially if most of your electricity comes from coal plants. The carbon footprint of a traditional carrier VDSL or PON network is orders of magnitude larger than a customer owned home-run fiber network – BSA]
Homes With Tails
What If You Could Own Your Internet Connection?
Friday, November 21, 2008
12:15 p.m. - 1:45 p.m.
New America Foundation
1630 Connecticut Ave NW, 7th Floor
Washington, DC 20009
America's path to becoming a broadband leader is uncertain. Few dispute that deploying fast, universal, and affordable broadband is imperative, but the costs of robust network infrastructure are daunting for the private sector and governments.
In a forthcoming New America Foundation working paper, authors Tim Wu and Derek Slater propose an innovative way to drive broadband deployment: a model that encourages consumers to purchase and own the "last-mile" connection that runs into their home. By purchasing their own fiber optic connections, consumers would be able to connect to a variety of service providers. This model holds the potential for higher broadband speeds, greater competition, and lower Internet service prices.
The idea of customer-owned fiber may seem odd at first, but buying items like personal computers, answering machines or even telephones was also unheard of only a few decades ago. Home fiber could someday become a must-have technology.
Join the authors for a presentation and discussion of this new proposal, and learn more about "Homes With Tails."
Featured Speakers:
Tim Wu
Professor of Law, Columbia Law School
Fellow, New America Foundation
Co-Author, Homes with Tails
Derek Slater
Policy Analyst, Google Inc.
Co-Author, Homes with Tails
Sascha Meinrath
Research Director, Wireless Future Program, New America Foundation
Moderator
Michael Calabrese
Director, Wireless Future Program, New America Foundation
To RSVP for this event, click on the red button or go to the event page: http://www.newamerica.net/events/2008/homes_tails
For questions, contact Cecille Isidro at (202) 986-2700 x 141 or isidro@newamerica.net
Homes With Tails
What If You Could Own Your Internet Connection?
Friday, November 21, 2008
12:15 p.m. - 1:45 p.m.
New America Foundation
1630 Connecticut Ave NW, 7th Floor
Washington, DC 20009
America's path to becoming a broadband leader is uncertain. Few dispute that deploying fast, universal, and affordable broadband is imperative, but the costs of robust network infrastructure are daunting for the private sector and governments.
In a forthcoming New America Foundation working paper, authors Tim Wu and Derek Slater propose an innovative way to drive broadband deployment: a model that encourages consumers to purchase and own the "last-mile" connection that runs into their home. By purchasing their own fiber optic connections, consumers would be able to connect to a variety of service providers. This model holds the potential for higher broadband speeds, greater competition, and lower Internet service prices.
The idea of customer-owned fiber may seem odd at first, but buying items like personal computers, answering machines or even telephones was also unheard of only a few decades ago. Home fiber could someday become a must-have technology.
Join the authors for a presentation and discussion of this new proposal, and learn more about "Homes With Tails."
Featured Speakers:
Tim Wu
Professor of Law, Columbia Law School
Fellow, New America Foundation
Co-Author, Homes with Tails
Derek Slater
Policy Analyst, Google Inc.
Co-Author, Homes with Tails
Sascha Meinrath
Research Director, Wireless Future Program, New America Foundation
Moderator
Michael Calabrese
Director, Wireless Future Program, New America Foundation
To RSVP for this event, click on the red button or go to the event page: http://www.newamerica.net/events/2008/homes_tails
For questions, contact Cecille Isidro at (202) 986-2700 x 141 or isidro@newamerica.net
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