Broadband 101 Slides 2018 - Mountain Connect · Advantages Low cost when telephone network is...
Transcript of Broadband 101 Slides 2018 - Mountain Connect · Advantages Low cost when telephone network is...
Broadband 101 MountainConnect 2018
Vail, Colorado
David Reed Faculty Director, Interdisciplinary Telecom Program
My Background (Online CV)
Federal Communications Commission Personal Communications Services Spectrum Auctions Telco/Cable Competition
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My Background (Online CV)
Federal Communications Commission Personal Communications Services Spectrum Auctions Telco/Cable Competition
CableLabs DOCSIS R&D and Project Incubation
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My Background (cont’d)
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My Background (cont’d)
Research interests
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My Background (cont’d)
Research interests
Network Economics of Broadband Networks
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My Background (cont’d)
Research interests
Network Economics of Broadband Networks
Network Security
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My Background (cont’d)
Research interests
Network Economics of Broadband Networks
Network Security
Spectrum Management
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My Background (cont’d)
Research interests
Network Economics of Broadband Networks
Network Security
Spectrum Management
Telecom Policy
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Webster’s Definition of
Webster’s Definition of
Noun, first known use 1960
Webster’s Definition of
Noun, first known use 1960
Webster’s Definition of
Noun, first known use 1960
1: operating at, responsive to, or comprising a wide band of frequencies <a broadband radio antenna>
Webster’s Definition of
Noun, first known use 1960
1: operating at, responsive to, or comprising a wide band of frequencies <a broadband radio antenna>
Webster’s Definition of
Noun, first known use 1960
1: operating at, responsive to, or comprising a wide band of frequencies <a broadband radio antenna>
2: of, relating to, or being a high-speed communications network and especially one in which a frequency range is divided into multiple independent channels for simultaneous transmission of signals (as voice, data, or video)
Webster’s Definition of
Noun, first known use 1960
1: operating at, responsive to, or comprising a wide band of frequencies <a broadband radio antenna>
2: of, relating to, or being a high-speed communications network and especially one in which a frequency range is divided into multiple independent channels for simultaneous transmission of signals (as voice, data, or video)
What is outdated or misleading with this definition?
Broadband 101 — Today’s Objectives
Learn broadband basics - non technical point of view!
Wireline and wireless access network options
Understand basic issues associated with broadband policies by the FCC
Describe key future trends and prospects for broadband
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Broadband 101 — OutlinePart I: Local Access Networks
Part II: Future Trends in Wireless Broadband Networks
Lunch (12:15 - ~30 minutes)
Part III: Broadband policies
Short break (~10 Minutes)
Part IV: Trends and Prospects for Gigabit Broadband�6
Part I: Definition and Local Access Networks
1. Understanding Broadband Networks • Basic network components and software systems
What is Broadband?
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What is Broadband?
A technology?
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What is Broadband?
A technology?
Life Line? Life Changer?
Pac Bell Web Hog Ad
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What is Broadband?
A technology?
Life Line? Life Changer?
Pac Bell Web Hog Ad
Policy?
Broadband Impact on Economic Development
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What is Broadband?
A technology?
Life Line? Life Changer?
Pac Bell Web Hog Ad
Policy?
Broadband Impact on Economic Development
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What Do We Do With Broadband?
What Do We Do With Broadband?
Source: Sandvine, Global Internet Phenomena Report, December 2015
What Do We Do With Broadband?
Source: Sandvine, Global Internet Phenomena Report, December 2015
What Do We Do With Broadband?
Source: Sandvine, Global Internet Phenomena Report, December 2015
Why is mobile usage different?
What Do We Do With Broadband?
Source: Sandvine, Global Internet Phenomena Report, 2016
How Do We Use Broadband?
Source: Sandvine, Global Internet Phenomena Report, 1H 2014
What Do We Do With Mobile Broadband?
Source: Sandvine, Global Internet Phenomena Report, 2016
What Do We Do With Mobile Broadband?
Source: Sandvine, Global Internet Phenomena Report, 2016Another recent view of usage from Pew Research Center
Historical Residential Data Rates
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Telephone Networks (Digital Subscriber Line)
Cable Networks (DOCSIS)
Historical Residential Data Rates
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Telephone Networks (Digital Subscriber Line)
Cable Networks (DOCSIS)
Source: The Future X Network, A Bell Labs Perspective, Chapter 7, 2016
FCC’s Definition of Broadband
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FCC’s Definition of BroadbandAdvanced telecommunications capability = high-speed, switched, broadband that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology
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FCC’s Definition of BroadbandAdvanced telecommunications capability = high-speed, switched, broadband that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology
FCC relies on single benchmark to analyze whether advanced service is deployed: SPEED
Latency, usage allowances, consistency not used
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Source: Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1996, as Amended by the Broadband Data Improvement Act, 2015
Broadband Progress Report and Notice of Inquiry of Immediate Action to Accelerate Deployment, FCC 15-10, GN Docket No. 14-126 (rel. Feb. 4, 2015)
FCC’s Definition of Broadband
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FCC’s Definition of Broadband
Old Definition (2010): 4 Mbps down/1 Mbps up
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FCC’s Definition of Broadband
Old Definition (2010): 4 Mbps down/1 Mbps up
New Definition: 25 Mbps down/3 Mbps up
Reflects “advanced” telecommunications capability
29% already served by these speeds
17% do not have access to these speeds (53% in rural)
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Why 25 Mbps? 3 Mbps?
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Source: Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1996, as Amended by the Broadband Data Improvement Act, 2015 Broadband Progress Report and Notice of Inquiry of Immediate Action to Accelerate Deployment, FCC 15-10, GN Docket No. 14-126 (rel.
Feb. 4, 2015)
Why 25 Mbps? 3 Mbps?
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Source: Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1996, as Amended by the Broadband Data Improvement Act, 2015 Broadband Progress Report and Notice of Inquiry of Immediate Action to Accelerate Deployment, FCC 15-10, GN Docket No. 14-126 (rel.
Feb. 4, 2015)
Why 25 Mbps? 3 Mbps?
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Source: Inquiry Concerning the Deployment of Advanced Telecommunications Capability to All Americans in a Reasonable and Timely Fashion, and Possible Steps to Accelerate Such Deployment Pursuant to Section 706 of the Telecommunications Act of 1996, as Amended by the Broadband Data Improvement Act, 2015 Broadband Progress Report and Notice of Inquiry of Immediate Action to Accelerate Deployment, FCC 15-10, GN Docket No. 14-126 (rel.
Feb. 4, 2015)
Elementary/Secondary Schools Speed Benchmarks
100 Mbps per 1000 students and staff
Long-term: 1 Gbps per 1000 students and staff
Consistent with E-rate Modernization Order of 2014
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Broadband System�18Source: Arris
Engineer’s View of Broadband Service Delivery
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Personal Computer or LAN
Local Access Network
Middle Mile Network
National Backbone
Content Provider
Engineer’s View of Broadband Service Delivery
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Personal Computer or LAN
Local Access Network
Middle Mile Network
National Backbone
Content Provider
Local ISPBroadband
Business and Residential Users
Regional ISP
Backbone ISP
Broadband Application Providers
Engineer’s View of Broadband Service Delivery
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Personal Computer or LAN
Local Access Network
Middle Mile Network
National Backbone
Content Provider
Average broadband speed of 45.07/21.93
Mbps Down/Up*Up to 1 Gbps Up to 100
GbpsTesting 1
Tbps
Content Distribution Networks
Local ISPBroadband
Business and Residential Users
Regional ISP
Backbone ISP
Broadband Application Providers
*Global average speed from ookla speed tester, April 2018
Engineer’s View of Broadband Service Delivery
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Personal Computer or LAN
Local Access Network
Middle Mile Network
National Backbone
Content Provider
Average broadband speed of 45.07/21.93
Mbps Down/Up*Up to 1 Gbps Up to 100
GbpsTesting 1
Tbps
Content Distribution Networks
Local ISPBroadband
Business and Residential Users
Regional ISP
Backbone ISP
Broadband Application Providers
‘End-to-End’ Broadband
*Global average speed from ookla speed tester, April 2018
Simplified View of Internet
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Application Layer
Network Layer
“Physical” Layer
Simplified View of Internet
Modularity – mutually independent functional layers
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Application Layer
Network Layer
“Physical” Layer
Simplified View of Internet
Modularity – mutually independent functional layersFirms compete independently at each layer without having to enter market for services at other layers
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Application Layer
Network Layer
“Physical” Layer
Simplified View of Internet
Modularity – mutually independent functional layersFirms compete independently at each layer without having to enter market for services at other layersOpenness – nobody owns core protocols
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Application Layer
Network Layer
“Physical” Layer
Local Access Network
Telephone Network: Digital Subscriber Line (xDSL) or Fiber-to-the-Home
Cable Network: Hybrid Fiber-Coax (HFC)
Wireless Network: Wireless Internet Service Provider (WISP) or Long Term Evolution (LTE)
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Varieties of xDSL over Telco
An alphabet soup of alternatives can be used over the telephone network
ADSL/ADSL2/ADSL2+/HDSL/VDSL/VDSL2…
Bottom line that you need to know:
Options differ in speed, transmission length, upstream capacity, generation/capability of technology
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Source: Marshall, “IPTV Thrives on a Fiber Rich Diet,” The Journal of The Comm. Network, 6,1, January–March, 2007
xDSL Speed vs. Distance
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Source: Marshall, “IPTV Thrives on a Fiber Rich Diet,” The Journal of The Comm. Network, 6,1, January–March, 2007
xDSL Speed vs. Distance
Faster integrated chips increasing speed
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Source: Marshall, “IPTV Thrives on a Fiber Rich Diet,” The Journal of The Comm. Network, 6,1, January–March, 2007
xDSL Speed vs. Distance
Faster integrated chips increasing speed
Fiber moving closer to customer
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Source: Marshall, “IPTV Thrives on a Fiber Rich Diet,” The Journal of The Comm. Network, 6,1, January–March, 2007
xDSL Speed vs. Distance
Faster integrated chips increasing speed
Fiber moving closer to customer
Bonding uses more copper pairs per home if available
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DSL Network Evolution
DSL Network Evolution
Source: The Future X Network, A Bell Labs Perspective, Chapter 7, 2016
DSL Tradeoffs
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DSL Tradeoffs
Advantages
Low cost when telephone network is present
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DSL Tradeoffs
Advantages
Low cost when telephone network is present
Disadvantages
Delivers relatively low broadband speeds unless fiber is extended very close (200 m.) to customer
Speeds delivered are not consistent for every customer�25
FTTX — Fiber to the…
Fiber-to-the Neighborhood (FTTN)
Fiber-to-the Curb (FTTC)
Fiber-to-the Building (FTTB)
Fiber-to-the Home (FTTH)
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FTTH Tradeoffs
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FTTH Tradeoffs
Advantages
Very high capacity (virtually unlimited bandwidth)
Low operations costs (immunity to electrical noise and interference)
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FTTH Tradeoffs
Advantages
Very high capacity (virtually unlimited bandwidth)
Low operations costs (immunity to electrical noise and interference)
Disadvantages
Very high fixed cost �27
Cost of FTTH
�28Source: http://www2.alcatel-lucent.com/techzine/the-numbers-are-in-vectoring-2-0-makes-g-fast-faster/
Cable Network
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Cable Network
Usually 750 MHz cable system (860 MHz and 1 GHz becoming more common)
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Cable Network
Usually 750 MHz cable system (860 MHz and 1 GHz becoming more common)6 MHz of cable spectrum = one “channel”
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Cable Tradeoffs
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Cable TradeoffsAdvantages
Reasonable incremental costs to increase speed
Delivers high capacity broadband
Consistent service speeds to customers
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Cable TradeoffsAdvantages
Reasonable incremental costs to increase speed
Delivers high capacity broadband
Consistent service speeds to customers
Disadvantages
Upstream capacity limits �30
Wireless Network
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Wireless Network
Cells cover unique geographical region
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Wireless Network
Cells cover unique geographical regionDesigned for capacity vs. coverage limitations
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Wireless Network
Cells cover unique geographical regionDesigned for capacity vs. coverage limitationsCell splitting to increase capacity
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Mobile Broadband: Long Term Evolution (LTE)
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Mobile Broadband: Long Term Evolution (LTE)
LTE Advanced = 4G Faster broadband speeds “All-IP” network
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Increasing Wireless Capacity Using Small Cells
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WISP Approach
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Wireless Tradeoffs
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Wireless TradeoffsAdvantages
Low cost in last mile
Standards lowering equipment costs
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Wireless TradeoffsAdvantages
Low cost in last mile
Standards lowering equipment costs
Disadvantages
Cost and characteristics of spectrum license
Speed limitations �35
General Trends Summary
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General Trends SummaryWireless newer, innovating more rapidly than wireline
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General Trends SummaryWireless newer, innovating more rapidly than wireline
Broadband driving demand for more spectrum
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General Trends SummaryWireless newer, innovating more rapidly than wireline
Broadband driving demand for more spectrum
Wireless increases speed by smaller cells; wireline by building fiber closer to customer
BOTH $$$, though $/Mbps usually declines with offered speed
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General Trends SummaryWireless newer, innovating more rapidly than wireline
Broadband driving demand for more spectrum
Wireless increases speed by smaller cells; wireline by building fiber closer to customer
BOTH $$$, though $/Mbps usually declines with offered speed
Wireline (fiber) intrinsically higher speed than wireless�36
Converged Future?
Converged Future?
Source: The Future X Network, A Bell Labs Perspective, Chapter 7, 2016
Converged Future?
Source: The Future X Network, A Bell Labs Perspective, Chapter 7, 2016What are the implications for converged future?
Most Important Trend — IP Wins!Wireless newer, innovating more rapidly than wireline
Broadband driving demand for more spectrum
Wireless increases speed by smaller cells; wireline by building fiber closer to customer
BOTH $$$, though $/Mbps usually declines with offered speed
Wireline (fiber) intrinsically higher speed than wireless
Wireline avoids network cost between tower and handset
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Part II: Future Trends in Wireless Broadband Networks
1. LTE, Wi-Fi, Small Cells and Seamless Access
Primary Source: The Future X Network, A Bell Labs Perspective, “The Future of Wireless Access,” Chapter 6, 2016
Future of Wireless
Much more capacity
Seamless use across networks
More reliability and better energy efficiency
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Capacity
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Capacity10—20 times more network capacity needed by 2025
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Capacity10—20 times more network capacity needed by 20255G and next-gen Wi-fi by 2020
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Capacity10—20 times more network capacity needed by 20255G and next-gen Wi-fi by 2020Seamless access to licensed and unlicensed spectrum
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Capacity10—20 times more network capacity needed by 20255G and next-gen Wi-fi by 2020Seamless access to licensed and unlicensed spectrumOptimum interface selected based on cost and service needs �41
Performance
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Performance
More speed on the way
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Performance
More speed on the wayLatency falling below 100 ms, much lower if edge clouds are used
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Performance
More speed on the wayLatency falling below 100 ms, much lower if edge clouds are usedDevice energy efficiency in 5G improving by 8x—12x
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Small Cells
Smaller cells increase the network capacity, and backhaul needs High bands (above 6 GHz) increasingly used by mobile providers
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Future of Wireless - Bottom Line
Much more capacity - more cells that are smaller
Seamless use across networks - more consumer friendly
More reliability and better energy efficiency - addiction and health effects issues grow in importance
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Part III: Public Policy Impacting Network
1. National Broadband Plan 2. Universal Service 3. Net Neutrality
National Broadband Plan
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“Broadband is the great infrastructure challenge of the early 21st century.”
Congressional Mandate
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Congressional MandateFCC to develop National Broadband Plan:
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Congressional MandateFCC to develop National Broadband Plan:
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“Ensure that all people of the U.S. have access to broadband capability and establish benchmarks for meeting that goal.”
Congressional MandateFCC to develop National Broadband Plan:
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“Ensure that all people of the U.S. have access to broadband capability and establish benchmarks for meeting that goal.”
“[I]nclude…a detailed strategy for achieving affordability…and maximum utilization of broadband infrastructure”
Congressional MandateFCC to develop National Broadband Plan:
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“Ensure that all people of the U.S. have access to broadband capability and establish benchmarks for meeting that goal.”
“[I]nclude…a detailed strategy for achieving affordability…and maximum utilization of broadband infrastructure”
“[I]nclude . . . an evaluation of the status of deployment of broadband service”
Long-Term Goals
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Long-Term Goals
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1. At least 100M U.S. homes have affordable access to download speeds of at least 100 Mbps and upload speeds of at least 50 Mbps
Long-Term Goals
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1. At least 100M U.S. homes have affordable access to download speeds of at least 100 Mbps and upload speeds of at least 50 Mbps
2. The U.S. should lead the world in mobile innovation, with the fastest and most extensive wireless networks of any nation
Long-Term Goals
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1. At least 100M U.S. homes have affordable access to download speeds of at least 100 Mbps and upload speeds of at least 50 Mbps
2. The U.S. should lead the world in mobile innovation, with the fastest and most extensive wireless networks of any nation
3. Every American should have affordable access to robust broadband service and the means and skills to subscribe if they so choose
Long-Term Goals
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1. At least 100M U.S. homes have affordable access to download speeds of at least 100 Mbps and upload speeds of at least 50 Mbps
2. The U.S. should lead the world in mobile innovation, with the fastest and most extensive wireless networks of any nation
3. Every American should have affordable access to robust broadband service and the means and skills to subscribe if they so choose
4. Every American community should have affordable access to service of at least 1 Gbps to anchor institutions (schools, hospitals, etc.)
Long-Term Goals
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1. At least 100M U.S. homes have affordable access to download speeds of at least 100 Mbps and upload speeds of at least 50 Mbps
2. The U.S. should lead the world in mobile innovation, with the fastest and most extensive wireless networks of any nation
3. Every American should have affordable access to robust broadband service and the means and skills to subscribe if they so choose
4. Every American community should have affordable access to service of at least 1 Gbps to anchor institutions (schools, hospitals, etc.)
5. To ensure safety, every first responder can access a nationwide, wireless, interoperable broadband public safety network
Long-Term Goals
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1. At least 100M U.S. homes have affordable access to download speeds of at least 100 Mbps and upload speeds of at least 50 Mbps
2. The U.S. should lead the world in mobile innovation, with the fastest and most extensive wireless networks of any nation
3. Every American should have affordable access to robust broadband service and the means and skills to subscribe if they so choose
4. Every American community should have affordable access to service of at least 1 Gbps to anchor institutions (schools, hospitals, etc.)
5. To ensure safety, every first responder can access a nationwide, wireless, interoperable broadband public safety network
6. Every American should be able to use broadband to track and manage their real-time energy consumption by 2020
Plan Summary
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Competition)
Design'policies'to'ensure'competition'that'maximizes'consumer'welfare,'innovation'and'investment9
Government-Efficiency)
Ensure'efficient'allocation'of'government'assets'(e.g.,'spectrum,'poles,'and'rights'of'way)9
Availability-and-Affordability)
Reform'universal'service'for'broadband'deployment'in'highBcost'areas'and'ensure'its'affordability'for'all9
Capture-Benefits)
Reform'policies'to'maximize'benefits'to'public'education,'health'care'and'government'operations9
Establishing Competition
1. Plan recommends market-by-market report on broadband pricing and competition
FCC Reports (Measuring Broadband America Reports 2011 - 2016)
Report uses measurement hardware and software – developed by Samknows – deployed in the homes of thousands of volunteer consumers to conduct automated,
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Establishing Competition
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Establishing Competition
2. Develop disclosure requirements for broadband service providers
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Establishing Competition
2. Develop disclosure requirements for broadband service providers
Pricing and performance information to ensure consumers are able to find best broadband provider
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Establishing Competition
2. Develop disclosure requirements for broadband service providers
Pricing and performance information to ensure consumers are able to find best broadband provider
Transparency drives service providers to compete for customers on the basis of actual performance
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Establishing Competition
2. Develop disclosure requirements for broadband service providers
Pricing and performance information to ensure consumers are able to find best broadband provider
Transparency drives service providers to compete for customers on the basis of actual performance
Net Neutrality Rules implements this recommendation
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Universal Service
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Government-sponsored subsidy to add or keep users of a desirable service by low rates
Principal market failure justification: network effects
Benefits society by enhancing economic development, democratic participation, and public safety
Started with Vail’s “one system, one policy, universal service” slogan in 1910 for the telephone network
Paying for Universal Service: Implicit Cross Subsidies
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Paying for Universal Service: Implicit Cross Subsidies
Geographic rate averaging
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Paying for Universal Service: Implicit Cross Subsidies
Geographic rate averaging
Business lines rates subsidizing residential lines
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Paying for Universal Service: Implicit Cross Subsidies
Geographic rate averaging
Business lines rates subsidizing residential lines
Long distance rates subsidizing local
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Paying for Universal Service: Implicit Cross Subsidies
Geographic rate averaging
Business lines rates subsidizing residential lines
Long distance rates subsidizing local
Vertical services (e.g., call waiting) priced above cost
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Paying for Universal Service: Implicit Cross Subsidies
Geographic rate averaging
Business lines rates subsidizing residential lines
Long distance rates subsidizing local
Vertical services (e.g., call waiting) priced above cost
Telecom Act of 1996: transition to explicit subsidies�53
Goals of Universal Service
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Goals of Universal ServicePromote availability at just, reasonable and affordable rates
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Goals of Universal ServicePromote availability at just, reasonable and affordable rates
Increase nationwide access to advanced telecommunications services
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Goals of Universal ServicePromote availability at just, reasonable and affordable rates
Increase nationwide access to advanced telecommunications services
Advance availability to low income, rural, and high cost areas at rates comparable to those charged in urban areas
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Goals of Universal ServicePromote availability at just, reasonable and affordable rates
Increase nationwide access to advanced telecommunications services
Advance availability to low income, rural, and high cost areas at rates comparable to those charged in urban areas
Increase access to telecommunications and advanced services in schools, libraries and rural health care facilities
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Goals of Universal ServicePromote availability at just, reasonable and affordable rates
Increase nationwide access to advanced telecommunications services
Advance availability to low income, rural, and high cost areas at rates comparable to those charged in urban areas
Increase access to telecommunications and advanced services in schools, libraries and rural health care facilities
Provide equitable and non-discriminatory contributions from all telecommunications providers
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Partial Timeline
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Partial TimelineCreated the Connect America Fund (CAF) to deploy 4 Mbps broadband and voice
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Partial TimelineCreated the Connect America Fund (CAF) to deploy 4 Mbps broadband and voice
2012: $4.5B annual budget approved
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Partial TimelineCreated the Connect America Fund (CAF) to deploy 4 Mbps broadband and voice
2012: $4.5B annual budget approved
2013: $50M reverse auction for tribal areas as Phase I
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Partial TimelineCreated the Connect America Fund (CAF) to deploy 4 Mbps broadband and voice
2012: $4.5B annual budget approved
2013: $50M reverse auction for tribal areas as Phase I
2014: 10-year term of support for winners of competitive bidding process; increases speed to 10/1 Mbps
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Partial TimelineCreated the Connect America Fund (CAF) to deploy 4 Mbps broadband and voice
2012: $4.5B annual budget approved
2013: $50M reverse auction for tribal areas as Phase I
2014: 10-year term of support for winners of competitive bidding process; increases speed to 10/1 Mbps
2016: Mobility Fund Phase II targets funding of 4G LTE in rural areas
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Sidebar: CAF Principles
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Sidebar: CAF Principles
1. Provide funding in areas without private sector business case to provide voice and broadband
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Sidebar: CAF Principles
1. Provide funding in areas without private sector business case to provide voice and broadband
2. At most one subsidized provider of broadband per area
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Sidebar: CAF Principles
1. Provide funding in areas without private sector business case to provide voice and broadband
2. At most one subsidized provider of broadband per area
3. Eligibility for funding should be company and technology agnostic so long as service provided meets FCC specifications
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Sidebar: CAF Principles
1. Provide funding in areas without private sector business case to provide voice and broadband
2. At most one subsidized provider of broadband per area
3. Eligibility for funding should be company and technology agnostic so long as service provided meets FCC specifications
4. Identify ways to drive funding to efficient levels
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Sidebar: CAF Principles
1. Provide funding in areas without private sector business case to provide voice and broadband
2. At most one subsidized provider of broadband per area
3. Eligibility for funding should be company and technology agnostic so long as service provided meets FCC specifications
4. Identify ways to drive funding to efficient levels
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Sidebar: CAF Principles
1. Provide funding in areas without private sector business case to provide voice and broadband
2. At most one subsidized provider of broadband per area
3. Eligibility for funding should be company and technology agnostic so long as service provided meets FCC specifications
4. Identify ways to drive funding to efficient levels
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Sidebar: CAF Principles
1. Provide funding in areas without private sector business case to provide voice and broadband
2. At most one subsidized provider of broadband per area
3. Eligibility for funding should be company and technology agnostic so long as service provided meets FCC specifications
4. Identify ways to drive funding to efficient levels
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Internet Policy Challenge
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Internet Policy Challenge
Internet represents a layered model of protocols
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Internet Policy Challenge
Internet represents a layered model of protocols
Competition and diversity have flourished at higher layers because of the consistent interface to lower layers
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Internet Policy Challenge
Internet represents a layered model of protocols
Competition and diversity have flourished at higher layers because of the consistent interface to lower layers
Policy challenge: when is government intervention needed to prevent dominant provider at one layer from stifling competition at another?
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Historical Origins of Net Neutrality
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Historical Origins of Net NeutralityCarterfone (1968) produced technologies (answering machine, fax, and modem)—removing barrier to development of packet switched network that eventually would become the Internet
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Historical Origins of Net NeutralityCarterfone (1968) produced technologies (answering machine, fax, and modem)—removing barrier to development of packet switched network that eventually would become the InternetComputer Inquiry II (1980) established 2 service types
Basic (subject to Title II common carrier regulation of 1934 Act)/Enhanced (ill-defined Title I rules)
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Historical Origins of Net NeutralityCarterfone (1968) produced technologies (answering machine, fax, and modem)—removing barrier to development of packet switched network that eventually would become the InternetComputer Inquiry II (1980) established 2 service types
Basic (subject to Title II common carrier regulation of 1934 Act)/Enhanced (ill-defined Title I rules)
Telecom Act of 1996 defined two entities Telecommunications carriers (Title II)/Information-service providers (Title I)(unregulated)
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Historical Origins of Net NeutralityCarterfone (1968) produced technologies (answering machine, fax, and modem)—removing barrier to development of packet switched network that eventually would become the InternetComputer Inquiry II (1980) established 2 service types
Basic (subject to Title II common carrier regulation of 1934 Act)/Enhanced (ill-defined Title I rules)
Telecom Act of 1996 defined two entities Telecommunications carriers (Title II)/Information-service providers (Title I)(unregulated)
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Historical Origins of Net Neutrality
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Historical Origins of Net Neutrality FCC classified cable modem (2002), DSL (2005) and wireless (2007) broadband as information services
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Historical Origins of Net Neutrality FCC classified cable modem (2002), DSL (2005) and wireless (2007) broadband as information services
FCC ordered Comcast to new network management approach and transparency based on “ancillary jurisdiction” (2008)
Vacated because FCC failed to identify statutory authority that was reasonably ancillary
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Historical Origins of Net Neutrality FCC classified cable modem (2002), DSL (2005) and wireless (2007) broadband as information services
FCC ordered Comcast to new network management approach and transparency based on “ancillary jurisdiction” (2008)
Vacated because FCC failed to identify statutory authority that was reasonably ancillary
FCC’s Preserving the Open Internet rules based upon same theory of ancillary jurisdiction (2010)
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Historical Origins of Net Neutrality
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Historical Origins of Net Neutrality
FCC sought comment on reclassification of broadband Internet services in 2010, but adopted Open Internet rules instead
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Historical Origins of Net Neutrality
FCC sought comment on reclassification of broadband Internet services in 2010, but adopted Open Internet rules instead
Also in 2010, FCC concluded “broadband deployment to all Americans is not reasonable and timely” in Sixth Broadband Deployment Report
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Protecting and Promoting the Open Internet (2015)
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“America needs more broadband, better broadband,
and open broadband networks.”
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Justification
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Justification
Finding: broadband providers—both fixed and mobile—have both the incentives and ability to harm the open Internet
�63
Justification
Finding: broadband providers—both fixed and mobile—have both the incentives and ability to harm the open Internet
Finding: relatively small incremental burdens imposed by rules outweighed by benefits of preserving the open nature of the Internet
�63
Preserving the “Virtuous Cycle”
�64
New Broadband Applications
Increased Adoption of Broadband
Network Improvements
Foster cycle of broadband investment and innovation
Preserving the “Virtuous Cycle”
Internet is level playing field Thrives due to “freedom and openness” No gatekeepers blocking lawful network uses or picking online winners
�64
New Broadband Applications
Increased Adoption of Broadband
Network Improvements
Foster cycle of broadband investment and innovation
Preserving the “Virtuous Cycle”
Internet is level playing field Thrives due to “freedom and openness” No gatekeepers blocking lawful network uses or picking online winners
Openness promotes competition
�64
New Broadband Applications
Increased Adoption of Broadband
Network Improvements
Foster cycle of broadband investment and innovation
“Strong, Bright Line” Rules
�65
“Strong, Bright Line” Rules
No blocking
�65
“Strong, Bright Line” Rules
No blocking
No throttling
�65
“Strong, Bright Line” Rules
No blocking
No throttling
No paid prioritization
�65
“Strong, Bright Line” Rules
No blocking
No throttling
No paid prioritization
No unreasonable interference/disadvantage standard
�65
“Strong, Bright Line” Rules
No blocking
No throttling
No paid prioritization
No unreasonable interference/disadvantage standard
Transparency requirements
�65
“Modern” Title II
�66
“Modern” Title II
Forbearance of over 700 rules
�66
“Modern” Title II
Forbearance of over 700 rulesNo unbundling of last-mile facilities
�66
“Modern” Title II
Forbearance of over 700 rulesNo unbundling of last-mile facilitiesNo tariffing
�66
“Modern” Title II
Forbearance of over 700 rulesNo unbundling of last-mile facilitiesNo tariffingNo rate regulation
�66
“Modern” Title II
Forbearance of over 700 rulesNo unbundling of last-mile facilitiesNo tariffingNo rate regulationNo cost accounting rules
�66
“Modern” Title II
Forbearance of over 700 rulesNo unbundling of last-mile facilitiesNo tariffingNo rate regulationNo cost accounting rulesApplication of Sections 201 (interconnection), 202 (discrimination), and 208 (complaint process)
�66
Exceptions to Forbearance
�67
Exceptions to Forbearance
Section 222: Protecting consumer privacy
�67
Exceptions to Forbearance
Section 222: Protecting consumer privacy
Sections 225/255/251(a)(2): Ensuring disabilities access
�67
Exceptions to Forbearance
Section 222: Protecting consumer privacy
Sections 225/255/251(a)(2): Ensuring disabilities access
Section 224: Ensuring Infrastructure Access (pole attachments)
�67
Exceptions to Forbearance
Section 222: Protecting consumer privacy
Sections 225/255/251(a)(2): Ensuring disabilities access
Section 224: Ensuring Infrastructure Access (pole attachments)
Section 254: Promoting universal broadband
�67
Sustainable Open Internet Rules
�68
Sustainable Open Internet RulesRetail broadband Internet access service available today is best viewed as separately identifiable offers of
a broadband Internet access service that is a telecommunications service (including functions used for the management and control of that service)
Various “add-on” applications and content that are information services
�68
Sustainable Open Internet RulesRetail broadband Internet access service available today is best viewed as separately identifiable offers of
a broadband Internet access service that is a telecommunications service (including functions used for the management and control of that service)
Various “add-on” applications and content that are information services
Mobile broadband Internet access service is interconnected with the public switched network, and therefore a Commercial Mobile Service
�68
Restoring Internet Freedom Rules
�69
“We eliminate burdensome regulation that stifles innovation and deters investment, and empower
Americans to choose the broadband Internet access service that best fits their needs.”
�70
Policy Objectives
�71
Policy ObjectivesEnd utility-style regulation and restore market-based policy approach to preserve Internet freedom
�71
Policy ObjectivesEnd utility-style regulation and restore market-based policy approach to preserve Internet freedomRequire ISPs to be transparent
�71
Policy ObjectivesEnd utility-style regulation and restore market-based policy approach to preserve Internet freedomRequire ISPs to be transparentEliminate Internet conduct rules and other ex ante regulations
�71
Policy ObjectivesEnd utility-style regulation and restore market-based policy approach to preserve Internet freedomRequire ISPs to be transparentEliminate Internet conduct rules and other ex ante regulationsPromote infrastructure investment throughout America
�71
Policy ObjectivesEnd utility-style regulation and restore market-based policy approach to preserve Internet freedomRequire ISPs to be transparentEliminate Internet conduct rules and other ex ante regulationsPromote infrastructure investment throughout AmericaPromote innovation and consumer choice among ISP and edge provider services
�71
Policy Changes
�72
Policy Changes1. Reinstating information service classification of Internet Access
ISPs offer broadband users “capability for generating, acquiring, storing, transforming, processing, retrieving, utilizing, or making available information via telecommunications.” Not “the transmission, between or among points specified by the user, of information of the user’s choosing, without change in the form or content of the information as sent and received,”
�72
Policy Changes (cont’d)
�73
Policy Changes (cont’d)
2. Reinstating private mobile service classification of mobile broadband Classify all fixed and mobile broadband as information services
�73
Policy Changes (cont’d)
2. Reinstating private mobile service classification of mobile broadband Classify all fixed and mobile broadband as information services
3. Returning broadband privacy authority to the Federal Trade Commission (FTC)
History of policing online company’s privacy practices Title II order had created role for FCC to regulate ISP privacy Consumers “treated consistently across the Internet ecosystem”
�73
Policy Changes (cont’d)
�74
Policy Changes (cont’d)
4. Lite-Touch Regulatory Framework
Believes ex ante regulatory intervention in market is unnecessary versus ex post enforcement
Eliminating the Internet conduct standard
No need for no-blocking rule
No need for no-throttling rule �74
New Transparency Rule
�75
New Transparency Rule Increases likelihood that ISPs will abide by open Internet principles
�75
New Transparency Rule Increases likelihood that ISPs will abide by open Internet principles
Network management practices to disclose
From 2010: congestion management, application-specific behavior, device attachment rules, and security practices
New: any blocking, throttling, affiliated prioritization, or paid prioritization in which they engage
�75
Part IV: Important Future Trends and Prospects for
Gigabit Broadband
Gigabit Networks
Gigabit NetworksProponents: Broadband not advancing adequately
4-5 Mbps for $40/month deployed 20 years ago
More higher speed tiers, but performance similar
Economic activity/national productivity driver
Gigabit NetworksProponents: Broadband not advancing adequately
4-5 Mbps for $40/month deployed 20 years ago
More higher speed tiers, but performance similar
Economic activity/national productivity driver
Skeptics View: No demand for Gigabit Broadband
Broadband usage growth declining
Current peak hour usage way below Gigabit needs
Case for societal welfare benefits yet to be shown
”Technology will always win. You can delay technology by
legal interference, but technology will flow
around legal barriers.”
Andy Grove Former CEO, Intel
Numbers to Consider
Traditional TV Viewing: between 12 - 48 hours per week for ages 12 to 65+ (2 days!)
Online Video: 11 hours/month for 18-34 age group
Source: “Nielsen Q2 2017 Data �79
Google Fiber Project
Google fiber initially an “experiment, not a product, and optimized for political/research goals”.
-- Milo Medin, Google�80
Google Fiber Project2009: Google fiber announced
2010: Kansas City, 1100 cites respond to RFI and 9 selected
2013: Austin, TX and Provo, UT
2014: early discussions with 34 more cities in 9 metro areas
2016: Google “pausing” project
Google fiber initially an “experiment, not a product, and optimized for political/research goals”.
-- Milo Medin, Google�80
What about the FTTH cost barrier?
�81
Three Key Innovations
�82
Three Key Innovations1. Demand Aggregation
• “Rally” process in “fiberhoods”
�82
Three Key Innovations1. Demand Aggregation
• “Rally” process in “fiberhoods”2. Municipal Cooperation
• City provides dedicated inspectors • Colocation of Google staff with permitting office • Reusing city rights-of-way and real estate
�82
Three Key Innovations1. Demand Aggregation
• “Rally” process in “fiberhoods”2. Municipal Cooperation
• City provides dedicated inspectors • Colocation of Google staff with permitting office • Reusing city rights-of-way and real estate
3. Supply Chain Optimization • Utilize IP backbone/Manufacture equipment/Search
�82
Google/Kansas City Agreement
Google/Kansas City Agreement
Google requirements
Decide where and when demand for services support building the fiber network
Design, build, maintain, and operate 1G fiber network
Customer support
Google/Kansas City Agreement
Google requirements
Decide where and when demand for services support building the fiber network
Design, build, maintain, and operate 1G fiber network
Customer support
Kansas City requirements
Access to infrastructure without any charge
Expedited Inspections and Permit Review
Senior level Executive Sponsor and Project Team
Gigabit Supply Chain�84
Programs $ & Audiences
Cable Networks & Broadcasters
$
TVs & IP Devices
$
Network & Customer Premises Equipment
$Programs &Broadband
Subscribers
Service Provider
Content/$ Broadband
Audiences$
Broadband Apps
Broadband $
Tier 1 Backbones
$
Audiences
Advertisers
Goods & Services
Audiences$
Equipment Vendors
Strategic Implications — Economics
�85
Strategic Implications — Economics
Overbuilding model still a challenge due to high fixed costs if initial year penetration below 10%
�85
Strategic Implications — Economics
Overbuilding model still a challenge due to high fixed costs if initial year penetration below 10%
Demand aggregation accounts for up to 75% of benefits
�85
Strategic Implications — Policy
Broadband competition
“Broadband best practices” are material
Zero sum game
Selective deployment
�86
Strategic Implications —Policy
Hypothetical Distribution of Municipal Ranking in Speed
< 3 Mbps 4 - 10 Mbps 10 - 20 Mbps 20 - 50 Mbps 50 - 100 Mbps 1 Gbps
Top 1%Top 10%Above 50%AverageBelow
AverageLower 10%
Percentage Of All Cities
Municipal Demand For Broadband
Strategic Implications —Policy
Hypothetical Distribution of Municipal Ranking in Speed
< 3 Mbps 4 - 10 Mbps 10 - 20 Mbps 20 - 50 Mbps 50 - 100 Mbps 1 Gbps
Muni’s want to be here for economic development, but
target speed changes over time
Top 1%Top 10%Above 50%AverageBelow
AverageLower 10%
Percentage Of All Cities
Municipal Demand For Broadband
Common View of Fiber
“Towns will continue to become ghost towns if we don’t change the pattern and start bringing in some good paying jobs…. And
technology and broadband is the key to getting those jobs coming to northeast Oklahoma.”
Sheila Allgood, Bolt Fiber Optic Services Manager, announcing Gigabit Broadband project
Current SettingAT&T launched Gigapower for $70/month
Comcast Atlanta: 1 Gig for $70/month with 36 month contract
Disputes over access to poles (one step make ready) in Louisville and Nashville
Muni’s still interested despite mixed financial reviews (see Yoo, “Municipal Fiber in the United States”, 2017)
�89
Strategic Implications Summary
Demand aggregation has largest impact
Municipal cooperation reducing cost of regulation
Market concentration: new entry a zero sum game?
�90
Closing ThoughtsContent has won the battle over distribution, which will be all about efficiency
“It is all about content. That is what is king.”
Market will eventually force content providers to allow customers to pick the channels they want- Comments of John Malone (Denver Post, July 16, 2013)�91
Questions or CommentsDavid Reed
Interdisciplinary Telecommunications Program University of Colorado at Boulder