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Entries in Broadband (44)

Monday
Apr302012

For the Smart Rural Community, Broadband is Just the Beginning

NTCA Paper Delivers Affirmations and Examples of RLEC-Enabled Smart Rural Communities  

“A robust broadband network is the foundation of a smart rural community,” according to an NTCA White Paper entitled The Smart Rural Community; but “It is important to note that the mere presence of a robust, next-generation broadband network does not create a smart rural community.” The NTCA paper explores the meaning of “smart rural community” by providing insightful examples from rural areas across the country. The paper also makes declarations about how smart rural communities benefit local consumers and businesses by going above and beyond simply providing a fast, fat pipe to the premises. Generally speaking, “A smart rural community relies on broadband networks to enable a series of applications that the community can leverage for innovative economic development and commerce, top-notch education, first-rate healthcare, cutting-edge government services, enhanced security and more efficient utilities use.”

By reading the smart rural community examples in the NTCA paper, you can visualize a smart rural community as a stack of interrelated applications and services from the individual household level all the way up to the government level, and everything in between. A smart rural community will likely mean different things to different communities, and building a smart rural community will be a collaborative and unique experience for each community. The payoffs for investing in a smart rural community, NTCA argues, are significant: these investments and projects “create opportunities for community growth and viability.” Rural telecom providers are leading the way, and “Broadband networks that are currently being built by rural telephone companies are economic engines for the entire community.”

The abundant examples in the paper include projects in education, health care, agriculture, public safety, government, utilities, and home networking. In each category, NTCA highlights at least one rural broadband provider who is undertaking a smart rural community project by leveraging its broadband infrastructure and collaborating with other local institutions. In each example, the rural broadband provider is helping local residents and business to operate more efficiently, be more involved in the community, promote economic growth, or improve the quality of life in remote areas. Some of the RLECs highlighted in the paper include:

  • Nex-Tech (KS) has developed a shared network for local schools, Interactive Television Networks Inc., which “enables students to learn from teachers located in a different location, and allows the schools to share curriculum and spread the overhead costs among participants.” Nex-Tech has also helped develop a mobile application with Fort Hays University, and “the app enables processors to post curriculum and allows students to review the campus map, enroll in courses, watch videos and interact with campus staff.”
  • Madison Telephone Company (IL) has entered into a public-private partnership with a local health care provider. In this example, “Community Memorial Hospital transfers digital images in order to receive remote diagnostics services from larger hospitals and clinics in St. Louis and Springfield, Illinois…Madison Telephone worked in conjunction with the hospital to install fiber optic cable. The new fiber network enables the local hospital to expedite the transfer of images and diagnostic information.”
  • Ayrshire Farmers Mutual Telephone (IA) provides high-speed broadband to area farmers, who use the network to make critical farming decisions. One local farmer uses broadband to decide when and where to sell commodities and purchase the lowest-cost inputs. The farmer also utilizes “real-time weather reports [which] provide important information about temperatures, wind patterns and precipitation levels, which dictate the best times to distribute herbicides and pesticides and perform other farm operations.”
  • Valley Telephone Cooperative (TX) connects a local farm with 10 Mbps fiber-based broadband, enabling the farmer to “access county and state government offices online…to renew his vehicle licenses, contact his local tax bureau and perform other remote transactions, thus saving both on travel costs and time.”
  • Dickey Rural Networks (ND) has collaborated with local water and electric utilities on smart grid projects. The company built a private broadband network for the water utility, where “The technology will be used to monitor and control 12 remote lift stations and reservoir sites, providing the utility with greater intelligence and insight into its operations.” Additionally, “Dickey Rural Networks has collaborated with its state network and several neighboring telecommunications companies to install a fiber-based virtual private network throughout the electric transmission network.”
  • Horry Telephone Cooperative (SC) has developed Total Connect Remote Service, a home security system that is accessible from a consumer’s smartphone. NTCA explains, “The communications provider views its security service as a method to differentiate itself from its national and regional competitors, and entice home owners and developers to adapt a bundled package of services.”

NTCA concludes the paper with some thoughts on what type of infrastructure enables a thriving smart rural community. Some parameters include supporting sustainable economic activity, enabling any application a citizen or business may need, being “future-proof” and ubiquitous, uniting wired and wireless technologies, and maintaining the most current cybersecurity protection. NTCA recommends that broadband providers in smart rural communities offer at least 20 Mbps to the end-user and 1 Gbps in institutions.

NTCA ceo Shirley Bloomfield commented, “This paper confirms that the infrastructure and tech knowledge necessary to support smart applications exists in rural settings as well as big cities. It also underlines just how important broadband-enabled technologies are to the millions of people who live in rural America. Policy makers should take note and work to ensure that rural Americans have access to the same smart applications and the many economic benefits that accompany them as their counterparts in urban areas.”

One key-takeaway from reading this paper is that a single advanced (or “future-proof”) rural broadband network can literally provide innumerable customizable opportunities for citizens and businesses in remote areas. The underlying network can enable communities to tailor “smart” applications and technologies to their specific needs, such that the residents and businesses are more connected to the entire world than ever before. With one robust network, the sky is the limit for rural communities. However, the NTCA paper shows that it takes more than an “if you build it, they will come” attitude. Rural broadband providers have to collaborate with education, health care, local government, public safety, utility providers, local businesses and individual consumers in order to develop a truly smart rural community.

Monday
Apr232012

Broadband Investment Continues to Hold Steady in 2011

Source: USTelecom Press Release

According to a USTelecom research brief, the broadband industry invested nearly $66 billion in the nation’s information infrastructure in 2011, with wireline providing the largest portion of capital. Data from this 2011 research updates a data series published last year which documents the amount of capital broadband providers have invested since 1996. Through 2011, broadband providers have invested approximately $1.2 trillion.  

In 2011 wireline broadband providers invested nearly $27 billion, according to the study. From 1996 through 2011, wireline broadband providers invested approximately $640 billion in broadband infrastructure. Also, wireline contributed the largest portion of industry capital in 2011: 41 percent, compared to 40 percent for wireless and 19 percent for cable. High-speed fixed access and fiber core networks are essential to carry the large volume of data traffic, which has grown from the equivalent of 8.3 million DVDs per month in 2000 to more than 1.4 billion DVDs per month in 2010, and is expected to triple again over the next five years.

Consumer video over fixed networks remains the largest driver of bandwidth demand at more than two-thirds of U.S. data traffic in 2010 and approaching three-quarters in the next five years. Nearly all of U.S. wireless data traffic, the fastest growing data traffic segment, utilizes fixed network connections.

With nearly $66 billion invested in 2011, the broadband industry remains committed to deploying more and better broadband across the country. Nearly all Americans have a choice of multiple broadband providers, 96 percent of Americans--up one percent from 2010, now have access to fixed broadband.

Read the research brief.

Monday
Apr092012

BTOP Recipients Show Gains in Fiber Miles, New Broadband Subs

2011 Q4 BTOP Status Report Details Strong Progress Toward Meeting Goals

The National Telecommunications and Information Administration (NTIA) released its quarterly status report on the Broadband Technology Opportunities Program (BTOP) for Q4 2011, and the report shows strong gains in all funding recipients’ areas of focus. Since the 2010 Recovery Act, NTIA has invested around $4bn in 233 BTOP projects in every state, territory and the District of Columbia, including: 123 infrastructure projects ($3.5b), 66 Public Computer Center projects ($201m), 44 Sustainable Broadband Adoption projects ($251m), and 56 State Broadband Initiative projects ($293m). The quarterly status report concluded that “BTOP grant recipients collectively exceeded all performance goals established for FY11. Based on these positive results, NTIA established strong targets for FY12, taking into account progress made through FY11 and expected grant recipient performance through September 2012.”

Included in BTOP recipients’ successful endeavors, “the Program has delivered significant progress in areas such as new fiber-optic infrastructure construction, the opening of new Public Computer Centers (PCCs), and thousands of new broadband subscribers now experiencing the benefits of high-speed Internet services.” Recipients have now deployed 45,196 miles of fiber, up from 8,220 at the beginning of 2011—NTIA reports that 90% of the 2012 goal of 50k miles of fiber has been achieved already. According to NTIA, Mother Nature played a starring role in this achievement: “BTOP recipients benefited from unseasonably mild winter weather, which accelerated construction efforts. In some instances, contractors deployed additional crews to speed up the placement of fiber and underground conduit or the installation of microwave links on towers.”

Projects to connect community anchor institutions have also experienced success: “Last quarter, BTOP recipients connected and/or improved service to more than 2,211 anchor institutions within their project areas, bringing the total number of institutions to 6,374 across 35 states.” NTIA reports that recipients have reached 64% of the 2012 goal to connect 10,000 anchor institutions. Projects to “improve broadband access for the general public and vulnerable populations, such as low-income individuals, the unemployed, senior citizens, children, minorities, tribal communities, and people with disabilities” by installing PCCs reached 84% of the 2012 goal of 35k public workstations. Additionally, projects to increase Internet usage through digital literacy and job training led to “259,446 households and 1,279 businesses to subscribe to broadband services,” and more than 50k new subscribers signed up for broadband in Q4.  

NTIA provided some BTOP success stories from around the country, including:

  • Northwest Open Access Network (NoaNet) in Washington installed 120 new miles of fiber towards its goal of 830 total miles. NoaNet will “bring broadband connectivity to schools and community institutions in rural areas currently hampered by slow Internet and data connections.”
  • Com Net’s GigE PLUS Availability Coalition in Ohio deployed 140 miles of fiber towards its goal of 700 total miles. This project will ultimately “spur more affordable high-speed broadband access for approximately 737,000 households, 165,000 businesses, 2,900 institutions… [and] 300 public safety agencies.”
  • ENMR Telephone Cooperative in Texas and New Mexico connected 23 anchor institutions out of its goal of 200. NTIA explains, “ENMR will provide new broadband fiber and connectivity service, delivering Internet at discounted rates to local rural schools, state agencies, and other anchor facilities. This new network will also expand distance learning opportunities for students at schools and libraries in rural areas,” with speeds up to 1 Gbps.
  • The Nebraska Library Commission upgraded 126 PCCs at libraries across the state “to provide computer access, employment resources, and assistance with government services for communities with low broadband penetration and median incomes below the national average.” This project increased average speeds from 1.8 Mbps to 7.4 Mbps.
  • The Georgia Partnership for TeleHealth (GPT) connected 64 additional health care sites “providing free access to video conferencing and telemedicine equipment for more than 300 medical facilities, including hospitals, clinics, nursing homes, and public health departments.” This project includes outreach and awareness efforts like “free online education to rural Georgia physician office employees.”

The BTOP status report also includes information about grant expenditures, and NTIA reports that “BTOP recipients reached a significant milestone in late December 2011, surpassing $1b in total drawdowns…Federal outlays increased nearly 55 percent from the previous quarter, and matching funds contributed increased by more than 37 percent.” NTIA further explained administrative activities like recipient performance monitoring, site visits, and outreach efforts.

Overall, NTIA’s progress report appears to illustrate that the BTOP program is achieving its goals, although it does out provide details on how many new jobs have been created by the various programs. The report does however show that the funds are being used to improve broadband availability and adoption in rural, underserved, and vulnerable populations across the country. NTIA expects continued strong progress in 2012, and it looks like many of the 2012 goals will likely be met or exceeded.

Monday
Apr092012

Verizon Pulls Plug on Naked DSL, Justifies Move as Best for the Customer

Source: DSLReports.com

According to a story on DSLReports.com, Verizon will no longer offer High Speed Internet without local voice service on the same account as of May 6. Existing users will be able to keep there stand-alone service as long as they continue in the same plan.

DSLReports.com reported that Verizon said it was making the move so that it can control its cost structure more effectively, "enabling us to continue providing competitively priced services to existing and new customers." The company noted that: “The vast majority of our DSL customers enjoy it as part of a bundle with reliable home voice and TV service. By bundling, customers receive a better overall experience and value by having multiple services as part of a package."

DSLReports.com reporter Karl Bode quipped that Verizon's statement is, "nonsense, with yet another marketing department trying to convince consumers that an anti-consumer move somehow magically improves the Internet "experience." It's also not clear how forcing users to pay for a landline (and the endless fees tacked onto them) can be considered "competitive pricing." Verizon's reverting to forced landline bundling for one reason: to milk additional money from DSL users. Verizon has made it abundantly clear that these users aren't a serious part of their future broadband plans as the company focuses on more profitable mobile and fixed LTE (Home Fusion) services."

Sunday
Apr012012

Good News: NTCA Survey Shows 11% Spike in Broadband Take-Rate

Bad News: Cost and Regulatory Uncertainty Could Threaten Fiber Projects

“RLECs have shown tremendous progress in broadband availability in the past year.” It feels good to hear that, right? NTCA’s annual Broadband/Internet Availability Survey Report for 2011 was released on March 29, 2011, and the findings affirm that despite the tumultuous year RLECs forged ahead with broadband projects. The most significant result of the survey is undoubtedly that respondents increased their broadband take-rate to 66%, up from 55% the previous year.

114 NTCA members responded to the survey, and a whopping 100% of them provide broadband in some form—up from 58% in 2000. The survey respondents averaged 4,745 residential and 1,736 business access lines. The breakdown of broadband technologies provided by the respondents illustrates that RLECs will do what it takes to provide broadband in rural areas. Of the technologies provided, 80% used DSL/copper, 64% used FTTH, 29% used FTTN, 14% used unlicensed wireless, 14% used licensed wireless, 11% used cable, and 5% used satellite. These numbers show that some companies likely deploy a variety of broadband technologies that best fit their unique geographic and demographic conditions.

The report’s findings on competition were also interesting. 97% of the respondents faced some kind of competition, up from 66% in 2003. RLECs have responded to market forces by “taking numerous steps to increase broadband take rates, including free customer premise equipment installation, bundling of services, price promotions, free modems, free introductory service and free education and training.” Competition comes from WISPs, large ISPs, and cable companies; but not surprisingly the survey found that most of the competition is in areas with higher population. “Seventy-three percent of those respondents facing competition indicated that their fixed service competitors were serving only the cities and towns in their service areas, while 27% said that competitors were serving customers in other portions of their service areas as well.” The respondents found that it was difficult to compete on price, with their prices ranging from $29 to $54 per month depending on the service. NTCA concluded that competition is significant, but “in many instances, the rural LEC is the only broadband option available to the residents and businesses in most of the rural areas of the country.”

The survey focused heavily on fiber deployment plans and challenges. 58% of the respondents plan to offer FTTN to more than 75% of customers by the end of 2014, but “deployment cost remains the most significant barrier to widespread deployment of fiber, followed by regulatory uncertainty, long loops, current regulatory rules, obtaining financing, obtaining cost-effective equipment, and low customer demand.” The estimated cost to bring all customers served by the respondents up to 25 Mbps ranged from less than $1m to over $50m, with 35% of respondents reporting the cost would be between $1m and $10m.

In addition to cost, regulatory uncertainty is of course a significant barrier to fiber deployment. NTCA concluded that regulatory uncertainty is preventing companies from taking risks, but “once RLECs have a better idea of what the future regulatory landscape will look like, they will be able to resume their long-term planning efforts.” The problem, of course, is that no one knows how long it will take for the FCC to resolve the impending regulatory issues, or if the issues will be resolved in such a way that RLECs will be able to access capital and resume fiber deployment plans. Comments by respondents reflected these fears—one member said, “We need regulatory certainty. There appears to be no way to recover our cost to expand our FTTH network to the outer edges of our study area.” Another commented, ”Current and uncertain regulatory rules all have to be clear such that a normal person understands and knows what to expect going forward.”

All told, the survey results should give RLECs something to be proud of—increasing broadband availability, speed, and adoption is no easy task for a small company during an economic downturn with overhanging regulatory storm clouds constantly threatening to wash away any progress that has been made in the last few years.