Benoît Felton of Fiber Evolution says that Open Access makes Economic Sense - in four parts:
Tag: "open access"
Though Danville, Virginia, was hit hard by the simultaneously decline of tobacco and textile industries, the community has responded: Danville Utilities has been building a state of the art all fiber network. Like many communities, they built a backbone and connected the schools and government buildings first. They then started to connect businesses. This summer they will be rolling out a pilot project to connect a few thousand homes to their open services network. As they add more potential subscribers to the network, they will be more attractive to service providers. This should spur competition, increase innovation, reduce prices, and otherwise make the network more desirable to subscribers. Though the open access idea has been somewhat maligned following the troubles of UTOPIA (many of which had nothing to do with the wholesale model), the consulting firm Design Nine has helped both nDanville and The Wired Road move forward with a revised wholesale-only model. This approach may be gaining traction nationally depending on how the rules for the stimulus grants are written: Stimulating Broadband suggests broadband stimulus funding from USDA will favor "projects that will deliver end users a choice of more than one service provider." Back in Danville, the schools have much faster Internet access while shaving their telecom budgets. Other key features are listed on the network's site, including:
The nDanville Medical Network project has begun to connect a majority of doctor’s offices and medical clinics around the city. The network is already being used by the Danville Regional Medical Center to provide super high speed connectivity to satellite clinics and offices in Danville.
Last year, Last Mile featured an article on the network that includes some numbers, goals, and history of the project. Below is a video that discusses some of the benefits of the network.
Tim Nulty offers a great vision and hope for the future of rural broadband networks. He discusses the long history of large telcos viciously attacking publicly owned networks and notes that FTTH is possible in nearly all rural areas in the U.S.
Among the advantages of public ownership, he notes the high quality of service, universal coverage, and the potential for common carriage or open access networks.
Our economy and society have evolved over the last 20 years to the point where universal availability of the most modern broadband communications is essential to fully participate in every aspect of our nation’s life. Without it, the promise of an equal chance to succeed is hollow. Our nation came to that conclusion two centuries ago when it created the national postal system, and in subsequent years with respect to roads, water, power and voice telephone. Now, it is coming to the same conclusion about the next level of communications: broadband connectivity. ...
[T]he main entrenched incumbents (both telephone and cable) are strongly reluctant to bring the latest technology to rural areas....focusing, instead, on cheaper but inferior “retrofits” to their legacy copper plant. The claimed reason is that it is not economically feasible to extend the latest technology to less “juicy” areas. In fact, this is not true. Based on the experience of a number of “non-incumbent” FTTH projects, it is clear that it is economic to bring universal FTTH to virtually any rural area that has a density of 12/13 homes per linear mile and all or most of whose plant is aerial. These characteristics cover the overwhelming majority of rural Americans.
Note: Nulty's piece appears on page 23 of the article linked to below. Preceding his piece is a poorly written piece riddled with the very sort of inaccuracies we started this site to correct. The article cites few examples and relies on worst-case, very low probability scenarios to scare the reader. Their discussion of the Utah networks suggests they are unaware of the most basic history of the project, and finally, their comparison of Burlington Telecom to Verizon is laughably simplistic and worthless.
In hindsight, KPN [a Dutch telephone company] made a mistake back in 1996. We were not too enthusiastic to be forced to allow competitors on our old wireline network. That turned out not to be very wise. If you allow all your competitors on your network, all services will run on your network, and that results in the lowest cost possible per service. Which in turn attracts more customers for those services, so your network grows much faster. An open network is not charity from us, in the long run it simply works best for everybody.
Larry Press takes a rather quantitative approach to demonstrating that the deregulatory telecommunications policies of the past few decades have failed to produce the desired outcomes. We are currently at a key turning point in history: the policies we enact today will have repercussions throughout the entire decade. Fiber is replacing copper, the question is who will own it because owners make rules.
During the last 25 years, telecommunication has moved away from government–owned or regulated monopolies toward privatization with competition and oversight by independent regulatory agencies — PCR policies. We present data indicating that PCR has had little impact on the Internet during the last ten years in developed or developing nations, and discuss the reasons for this. We then describe several ways government can go beyond PCR, while balancing needs for next generation technology, decentralized infrastructure ownership, and immediate economic stimulus. We conclude that there is a need for alternatives to the expedient action of subsidizing the current Internet service providers with their demonstrated anti–competitive bent. The decisions we make today will shape telecommunication infrastructure and the industry for decades.
Lawrence Kingsley produced a short overview of the UTOPIA (Utah Telecommunication Open Infrastructure Agency) network from late 2008. Though UTOPIA is often cited as a failure, few have taken the time to understand where the network went wrong, why others will not duplicate the problems, and why locals still want to see UTOPIA continue.
Despite its problems, the churn rate from UTOPIA was .5%. This is a tremendous vote of confidence - people who take service from UTOPIA don't unsubscribe. Like so many community networks, the biggest problem UTOPIA faces may be the dirty tricks of incumbents who have used the legislature to attack UTOPIA.
The May 2008 issue of Broadband Properties offers an overview of municipally-owned fiber-to-the-home networks across the United States. The article discusses why public power utilities are heavily represented, open vs. closed, the geographical distribution, and most importantly, the many differences between the models used by all these different communities.
In fact, what we have found is that there is no “municipal model.” Municipalities and other public entities build FTTP systems for many reasons and in many situations. They face a variety of legal and competitive landscapes, employ different financing methods, operate their systems in diverse ways, deliver different sets of services to different types of customers, and bring a diversity of resources and competencies to the task. While there are certain recurrent themes, there is no single distinguishing feature. Local differences appear to far outweigh the simple fact of public ownership.
This article summarizes the "Public Ownership is Good Business" Panel from the 2008 Broadband Properties Summit. Panelists included Christopher Mitchell from muninetworks.org, Andrew Cohill of Design Nine, Monticello City Administrator Jeff O'Neill, Mary Farley of Steeplechase Networks, and John St. Julien from Lafayette.
The panel discusses the ins and outs of open access, goals driving community networks, and the power of next-generation networks.
This is not a new idea. The concept of common carriage is ancient in culture. It is deeply embedded in common law. It goes back almost two thousand years. Net neutrality is simply common carriage for the 21st century. It is the same idea we had in the 18th- century turnpikes. We fought it over canals. We fought it over railroads and we fought it over public roads when public roads were first beginning. To me, that's fundamental and it's a fundamental reason why the towns in Vermont wanted to do and do it as a public activity.
This is the report developed by a Broadband Advisory Committee established in 2006 in Saint Paul, Minnesota. It recommended a phased approach to building a network that could ultimately offer a full FTTH open-access network to everyone in Saint Paul.
The BAC recommends an incremental, phased-approach to creating a publicly controlled network that uses both short- and long-term solutions. This approach would allow City and community leaders to evaluate and make decisions at key points throughout the process.
The network would begin by creating a partnership with key Saint Paul public institutions to address their own broadband infrastructure needs. This partnership would participate in the development of a collaborative and cooperatively managed fiber network that would serve the immediate- and the long-term telecommunications needs of the partners. The cooperative venture would be leaveraged through the efficient maximization of the partners' pooled resources. The network has been coined the Community Fiber Network (CFN). Possible initial partners include: City of Saint Paul, Ramsey County, Saint Paul Public Schools, and State of Minnesota.
The BAC envisions that the CFN would have the ability to grow organically, developing in stages as new partners are added, with the possible long term goal of the CFN providing the momentum to build a city-wide fiber system to serve the entire Saint Paul community.