[GB-Today] Monday Musings

[Susan Estrada]

Monday Musings
October 18, 2004

Sailing. Sailing. I’m actually on vacation this week, sailing the azure 
seas of the Western Caribbean. Is there nowhere to go to escape email? 
(Or, should I be marveling at the reach of this remarkable technology?)

Mark Your Calendar for November’s One Gigabit or Bust Roundtable

In just 4 weeks, the Roundtable will hold its fourth meeting at the 
Sheraton in downtown Sacramento. Don’t forget to check the agenda and 
make your hotel reservations before October 22. All the info can be 
found at http://www.cenic.org/gb/events/rt1104/index.htm .

Which is it: Oops, They Did It Again or the Hallelujah Chorus from Handel?

Last week, the FCC made a number of decisions that could dramatically 
effect the deployment of next-generation broadband here in California. 
I’ll be the first to say I never fully understand the implications of 
their lawyerese (give me a technical manual, please!), so I’ve included 
the coverage of the fiber decision from the Benton Foundation’s 
Communications-related Headlines. The article covers both sides of the 
issue. If you are interested in tracking this sort of stuff, you might 
want to subscribe to their free online news summary service. For 
subscribe/unsubscribe info email: headlines at benton.org.

Anyway, the upshot of all of this is that Ed Whitcare, head guy at SBC, 
said that the shovel is in the ground (hopefully in this great state 
first!) Let me know what you think.

There was also a decision about broadband over powerlines (BPL) which 
I’ll muse about on another Monday. I’m still hunting for BPL trials in 
California. Heard some rumors, but can’t find any facts.

 From the Benton Foundation’s Communications-related Headline: (c)Benton 
Foundation 2004. Redistribution of this email publication -- both 
internally and externally -- is encouraged if it includes this message

BROADBAND DEPLOYMENT IN RESIDENTIAL NEIGHBORHOODS
The FCC relieved incumbents telecos from unbundling requirements for 
fiber-to-the-curb (FTTC) loops, where fiber is extended within 500 feet 
of a customer's premises. The FCC found that FTTC networks can deliver 
many of the same benefits as FTTC loops. FTTC networks offer enhanced 
capability for providing advanced services, including the ability to 
offer voice, multi-channel video, and high-speed data services. The new 
rules free companies to choose between fiber-to-the-home (FTTH) or FTTC 
networks based on marketplace characteristics, rather than disparate 
regulatory treatment. The FCC also clarified that incumbent telecos are 
not obligated to build time division multiplexing (TDM) capability into 
new packet-based networks or into existing packet-based networks that 
never had TDM capability.
[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A1.doc

STATEMENTS FROM COMMISSIONERS --
* Powell (Majority):
Deep fiber networks offer consumers a "triple play" of voice, video and 
data services and an alternative to cable. By limiting the unbundling 
obligations of incumbents when they roll out deep fiber networks to 
residential consumers, we restore the marketplace incentives of carriers 
to invest in new networks. There is, however, an important limiting 
principle in this item: our rules demand that carriers deploy fiber deep 
into neighborhoods - within 500 feet of a customers' home. Our policy is 
designed to remove regulatory barriers to these risky investments; but 
we will remain watchful of requests that would back the Commission up 
from the broadband future. Consumers deserve information at the speed of 
light and by taking action today, we move one step closer to that result.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A2.doc
Abernathy: 
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A3.doc
Martin: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A5.doc

* Copps (Dissenting):
Though today's Order speaks in glowing terms about broadband relief, the 
reality is far less radiant. I don't believe competitive 
telecommunications have been faring very well under our watch and this 
particular proceeding strikes me as yet another in a series of 
prescriptions this Commission is willing to write to end competitive 
access to last mile facilities. It seems every month brings a new 
onslaught. Here is why I think this approach is dangerous. The loop 
represents the prized last mile of communications. Putting it beyond the 
reach of competitors can only entrench incumbents who already hold sway. 
Monopoly control of the last mile created all kinds of problems for 
basic telephone service in the last century, and now we seem bent on 
replicating that sad story for advanced services in the digital age. 
Unfortunately, the digital age is going to take a lot longer to get here 
because of the blows we are inflicting on competition. If we aren't 
going to listen to consumers, one would think this Commission would at 
least listen to the investors who wrote us again last week that our 
broadband policies are undermining competition, undermining 
facilities-based carriers who need last-mile access to service small 
business customers, and undermining the confidence of investors who want 
to put money into this kind of competition-in fact who have already done 
so! It doesn't take a compass to see what direction this is heading. 
With fewer and fewer loops available to competitors, more and more 
control will be wrestled away from consumers and placed with the 
entrenched owner of the last mile facility. By shutting off the last 
mile to competitors, the Commission is not ushering in a new era of 
broadband. It is returning to the failed and non-competitive policies of 
the past. Residential consumers, small businesses, edge providers of 
VoIP and others who rely on competitive broadband will be stuck with the 
consequences, and the consequences will be with us for a long time and 
will, I predict, kick us further down that broadband penetration ladder 
where your country and mine now ranks Number 11.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A4.doc
Adelstein (Dissenting in part): 
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A6.doc

REACTIONS
* Association for Local Telecommunications Services
“The Bell companies -- with the support of the FCC -- are quickly 
recapturing their monopoly over local loops. Thanks to the FCC’s action 
today, the Bells can now deny competitive carriers access to local loop 
facilities that contain any fiber including part fiber/part copper loops 
that were deployed decades ago. In a complete reversal of broadband 
policies announced just last year, the FCC has now immunized the Bell 
companies from competition for residential and small business customers 
over existing loops even though the FCC concluded that such 
remonopolization of loop plant would disincent further investment in new 
fiber deployment. Today’s action undermines facilities-based competition 
and threatens the availability of competitive services to businesses. 
Even access to core DS1 network elements -- supported by a unanimous FCC 
in the last competition proceeding -- is being curtailed in response to 
Bell company requests. The FCC needs to stop saying one thing and doing 
another. The nation’s small businesses need the Administration and the 
FCC to stand firmly in support of loop unbundling.”

* Consumers Union and Consumer Federation of America
"The FCC today took our country one giant step closer toward solidifying 
a two-company domination -- the local cable and telephone providers -- 
over the consumer Internet market,” said Gene Kimmelman, Senior Policy 
Director for Consumers Union. “As both industries tighten their hold on 
high-speed Internet (broadband) access, consumers will see their choices 
diminish and their bills skyrocket.” “This stranglehold will stifle 
innovation as these duopolies discriminate against unaffiliated 
applications and services that in the past have driven the growth of the 
Internet and the boom in information technology,” Mark Cooper, Director 
of Research at the Consumer Federation of America, said. “As a result, 
our country will fall even farther behind Asia and Europe in broadband 
penetration.”
http://www.consumersunion.org/pub/core_telecom_and_utilities/001443.html#more
SEE ALSO --
Reuters: 
http://www.reuters.com/newsArticle.jhtml;jsessionid=HIK3ZIV30ABA0CRBAEZSFEY?type=technologyNews&storyID=6506341



Susan