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Broadband 101 MountainConnect 2018

Vail, Colorado

David Reed Faculty Director, Interdisciplinary Telecom Program

My Background (Online CV)

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https://sites.google.com/a/colorado.edu/davidreed/curriculum-vitae


Federal Communications Commission Personal Communications Services Spectrum Auctions Telco/Cable Competition

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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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Research interests

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Research interests

Network Economics of Broadband Networks

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Research interests


Network Security

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Research interests


Network Security

Spectrum Management

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Research interests


Network Security

Spectrum Management

Telecom Policy

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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)




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What is outdated or misleading with this definition?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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https://www.youtube.com/watch?v=O5YEZtyjGvk

http://www.tenn4fiber.com/home/2015/9/9/why-fiber-optic-broadband-matters-for-economic-development-1


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 Do We Do With Broadband?


Source: Sandvine, Global Internet Phenomena Report, December 2015


Source: Sandvine, Global Internet Phenomena Report, December 2015

Why is mobile usage different?


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

http://www.pewinternet.org/fact-sheet/internet-broadband/

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)


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Old Definition (2010): 4 Mbps down/1 Mbps up

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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)

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


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Middle Mile Network

National Backbone

Content Provider

Local ISPBroadband

Business and Residential Users

Regional ISP

Backbone ISP

Broadband Application Providers


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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


Regional ISP

Backbone ISP


*Global average speed from ookla speed tester, April 2018


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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


Regional ISP

Backbone ISP


‘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


Modularity – mutually independent functional layers

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Application Layer

Network Layer



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



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



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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Faster integrated chips increasing speed

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Fiber moving closer to customer

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Fiber moving closer to customer

Bonding uses more copper pairs per home if available

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DSL Network Evolution

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

�33Source: Ruckus

WISP Approach

�34Source: AFNet

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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Broadband driving demand for more spectrum

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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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Wireline (fiber) intrinsically higher speed than wireless�36

Converged Future?

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




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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“Ensure that all people of the U.S. have access to broadband capability and establish benchmarks for meeting that goal.”


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“[I]nclude…a detailed strategy for achieving affordability…and maximum utilization of broadband infrastructure”


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“[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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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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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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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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5. To ensure safety, every first responder can access a nationwide, wireless, interoperable broadband public safety network

Long-Term Goals

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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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2. Develop disclosure requirements for broadband service providers

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Pricing and performance information to ensure consumers are able to find best broadband provider

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Transparency drives service providers to compete for customers on the basis of actual performance

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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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Geographic rate averaging

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Business lines rates subsidizing residential lines

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Long distance rates subsidizing local

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Vertical services (e.g., call waiting) priced above cost

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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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Increase nationwide access to advanced telecommunications services

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Advance availability to low income, rural, and high cost areas at rates comparable to those charged in urban areas

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Increase access to telecommunications and advanced services in schools, libraries and rural health care facilities

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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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2012: $4.5B annual budget approved

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2013: $50M reverse auction for tribal areas as Phase I

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2014: 10-year term of support for winners of competitive bidding process; increases speed to 10/1 Mbps

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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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1. Provide funding in areas without private sector business case to provide voice and broadband

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2. At most one subsidized provider of broadband per area

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3. Eligibility for funding should be company and technology agnostic so long as service provided meets FCC specifications

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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 represents a layered model of protocols

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Competition and diversity have flourished at higher layers because of the consistent interface to lower layers

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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 Neutrality FCC classified cable modem (2002), DSL (2005) and wireless (2007) broadband as information services

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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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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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FCC sought comment on reclassification of broadband Internet services in 2010, but adopted Open Internet rules instead

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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

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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

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Preserving the “Virtuous Cycle”

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New Broadband Applications

Increased Adoption of Broadband

Network Improvements

Foster cycle of broadband investment and innovation


Internet is level playing field Thrives due to “freedom and openness” No gatekeepers blocking lawful network uses or picking online winners

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Internet is level playing field Thrives due to “freedom and openness” No gatekeepers blocking lawful network uses or picking online winners

Openness promotes competition

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“Strong, Bright Line” Rules

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No blocking

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No blocking

No throttling

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No blocking

No throttling

No paid prioritization

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No blocking

No throttling


No unreasonable interference/disadvantage standard

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No blocking

No throttling


No unreasonable interference/disadvantage standard

Transparency requirements

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“Modern” Title II

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Forbearance of over 700 rules

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Forbearance of over 700 rulesNo unbundling of last-mile facilities

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Forbearance of over 700 rulesNo unbundling of last-mile facilitiesNo tariffing

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Forbearance of over 700 rulesNo unbundling of last-mile facilitiesNo tariffingNo rate regulation

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Forbearance of over 700 rulesNo unbundling of last-mile facilitiesNo tariffingNo rate regulationNo cost accounting rules

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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)

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Exceptions to Forbearance

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Section 222: Protecting consumer privacy

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Sections 225/255/251(a)(2): Ensuring disabilities access

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Section 224: Ensuring Infrastructure Access (pole attachments)

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Section 224: Ensuring Infrastructure Access (pole attachments)

Section 254: Promoting universal broadband

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Sustainable Open Internet Rules

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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

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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

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Restoring Internet Freedom Rules

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“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.”

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Policy Objectives

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Policy ObjectivesEnd utility-style regulation and restore market-based policy approach to preserve Internet freedom

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Policy ObjectivesEnd utility-style regulation and restore market-based policy approach to preserve Internet freedomRequire ISPs to be transparent

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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

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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

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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

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Policy Changes

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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,”

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Policy Changes (cont’d)

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2. Reinstating private mobile service classification of mobile broadband Classify all fixed and mobile broadband as information services

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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”

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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

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New Transparency Rule Increases likelihood that ISPs will abide by open Internet principles

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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

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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?

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Three Key Innovations

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Three Key Innovations1. Demand Aggregation

• “Rally” process in “fiberhoods”

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• “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

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• “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

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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 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

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Overbuilding model still a challenge due to high fixed costs if initial year penetration below 10%

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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

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Strategic Implications — Policy

Broadband competition

“Broadband best practices” are material

Zero sum game

Selective deployment

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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)

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Strategic Implications Summary

Demand aggregation has largest impact

Municipal cooperation reducing cost of regulation

Market concentration: new entry a zero sum game?

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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

broadband 101 slides 2018 - mountain connect · advantages low cost when telephone network is...

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