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Lessons on Retail and Wholesale Broadband Models from Europe, Asia, and the U.S. - Episode 505 of the Community Broadband Bits Podcast
This week on the podcast, Christopher is joined by Benoit Felton (Independent Consultant, Diffraction Analysis). During the conversation, the two discuss the transformational potential of broadband, international developments in fiber deployment and lessons on wholesale broadband networks.
They talk about the state of European broadband service, what keeps customers from changing providers within open access models, and compare “open access” with “wholesale” terminology.
Benoit and Chris discuss the reality of Internet connectivity and access in China and Southeast Asian countries finding recent success in fiber deployments. Finally, they end the show with thoughts on regulatory capture and why regulation is key to the success of wholesale networks.
This show is 49 minutes long and can be played on this page or via Apple Podcasts or the tool of your choice using this feed.
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Listen to other episodes here or view all episodes in our index. See other podcasts from the Institute for Local Self-Reliance here.
Thanks to Arne Huseby for the music. The song is Warm Duck Shuffle and is licensed under a Creative Commons Attribution (3.0) license.
Big (Connectivity) Trouble in Little China
In November, a majority of voters in China (not the country, but a small town in Maine) cast their ballots in opposition to a $6.4 million proposal for a municipal broadband network that, if built, would have provided high-speed Internet access to every household and business in this central Maine town of 4,300.
In recent weeks, China residents learned that Consolidated Communications would not be coming to the rescue. As reported by The Town Line, two representatives from Consolidated Communications attended China’s Broadband Committee (CBC) meeting in late January and the company reps “did not encourage (China) to expect an offer from the company to expand [I]nternet service to town residents.”
The CBC estimates that Consolidated currently serves about 20 percent of the town, while Spectrum serves about 70 percent of China’s households. But for the remaining 10 percent of China households without access to high-speed Internet service, the CBC meeting was a disappointing dose of post-election news.
Consolidated representatives Simon Thorne and Sarah Davis told the CBC that China is nowhere close to the top of their expansion plans, as the company bases its decisions on a combination of four primary factors: projected cost to build, number of potential customers, expected take rates, and whether a competitor also serves that market.
China’s population density is too low to offer enough profit to attract investors.
And just to be clear, when CBC member Tod Detre suggested the company is focused on “more profitable areas,” Davis replied, “You nailed it.”
‘Spirited Discussion’ About November Election
That, of course, led to a “spirited discussion” about last November’s election results. Ronald Breton, chairman of the select board and a guest at the CBC meeting, was emphatic in saying that town officials were still interested in facilitating town-wide connectivity, noting how even after the November ballot question failed the town select board unanimously voted that the CBC remain intact.
Broadband at the Ballot Box
Broadband was on the ballot as voters went to the polls for Election Day in many areas. Here’s a quick run-down of what happened.
The Colorado state law (SB-152) that bans local governments in the Centennial State from establishing municipal broadband service suffered another defeat at the ballot box. Since the law was passed nearly two decades ago, more than 150 Colorado communities have opted out. That number continues to grow and we can now add the town of Windsor to the list of municipalities in the state who have voted to restore local Internet choice.
At the polls yesterday, 77 percent of Windsor voters said yes to Ballot Question 3A, which asked “shall the Town of Windsor, without increasing taxes by this measure, be authorized to provide high-speed Internet services (advanced services), telecommunications services, and/or cable television services … either directly or indirectly with public or private sector partners?”