Exploring the impact of broadband and technology on our lives, our businesses, and our communities.
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In what may become a milestone in the quest for broadband, a public referendum in Lafayette, Louisiana to use municipal bonds to fund a fiber network passed by a wide margin (62% of voters said "yes"). Lafayette's public electric utility wanted to offer fiber broadband to its customers a couple of years ago, and the city became ground central for a bitterly fought battle led by the telephone and cable companies, which spent millions to stop the initiative.
Lafayette was probably a poor choice to fight the community. In 1896, the town had to form the Lafayette Utilities Service because the big electric companies refused to provide service to the rural community.
The Lafayette vote is significant. It was held on a Saturday, and received a 27% turnout, which is pretty high for a single issue vote (it was the only item on the ballot). Politicians across the country will have to look more closely at broadband issues going forward, because the one weakness of the telephone and cable companies is that companies do not vote--but citizens do, and in Lafayette, the citizens spoke loudly and clearly on the issue. All the lobbyist money in the world can't offset citizens determined to make a change.
The city says the first customers will get their fiber connections in about two years, and it will take a total of three and a half years to get fiber to every home and business in the community. That's not bad, considering it took almost 40 years to get a telephone to most homes.
The Supreme Court decision late last month (called Brand X) that cable companies do not have to share their lines continues to get debated across the Internet. I'm a contrarian here. While it's true that the cable companies enjoyed a monopoly position the marketplace for a long time, we changed the rules in 1996. They now have to compete, and I don't see the logic of expecting them to share their systems with their competitors. It's like demanding that UPS allow FedEx to use UPS trucks to deliver FedEx packages. In any context other than telecom, it would not receive even a minute of serious consideration.
Most of what has been written about the Brand X decision takes an adversarial, two position approach to this problem. Either we allow the cable companies to enjoy a de facto monopoly OR we force them to share their lines with their competitors.
But that's not the only two options. Both continue to perpetuate the worst aspects of the monopoly-based system we thought wasn't working in 1996. They still aren't working.
Another alternative is to build out community-owned and managed infrastructure and allow ALL service providers to share it, just as business competitors like UPS and FedEx share community roads. Last time I checked, this community-managed road sharing system has been working just fine for decades.
We need to stop letting the legacy providers define the debate, and insist on evaulating and discussing a wider range of alternatives.
Project Gizmo is a new Voice over IP application that seeks to challenge Skype, one of the best known free/fee Internet telephone applications. Project Gizmo is likely to win over the long run because the software is designed on an open source model that allows users to place calls to other voice software that uses the emerging SIP standard. Skype, by comparison, uses a proprietary protocol--you can only call other Skype users for free.
Both services charge a small fee of a few cents a minute to make connections to the "old" telephone network. The Gizmo software is available for both Windows and the Mac.
The big picture here is that traditional telephony is dead, dead, dead. One of the reasons the phone companies have resisted providing better broadband connections to users is their dread fear of losing telephone revenue. Cheap, fast fiber connections would encourage customers to quit paying for overpriced landline service and switch to VoIP.
The crazy thing is that this is already happening. The smart thing would be for the phone companies to simply compete--with better VoIP service. But instead, they are pouring hundreds of millions of dollars into lobbying efforts to keep the U.S. 16th in the world in broadband connectivity.
Fujitsu has demonstrated its new electronic paper. It's a thin, bendable "sheet" that can display color images, and the current image is displayed even when the power is turned off.
The first company that is able to deliver an affordable product is likely to make billions, as this kind of product will allow numerous uses. Fujitsu's electronic paper has a major advantage because of its storage capability--it can be loaded with an image and then turned off. Electronic displays have not found wider use because of the power consumption problems.
One likely application would be shelf price tags in grocery stores. It is a major cost to keep these updated. With electronic paper that requires no power, grocery stores would rush to buy these. Larger versions will see wide use to replace paper ads and billboards on buses and subways, as just one example.
And of course, we'll all have a lightweight, wireless version that can pull Web pages off our desktop computer so we can read the morning news at the breakfast table.
Digital paper is a transforming technology. As I've said in the past, we are at the very beginning of the technology revolution. So far, many of our every day processes have been reformed but not transformed. There are tremendous business and economic development opportunities that will emerge in the next ten to twenty years as transforming technologies like digital electronic paper become commonplace. Does your local economic develop strategy have a futures componenent, where you are looking at future trends and weighing local assets for opportunities?
Introduced by Senators McCain (Arizona-R) and Lautenberg (New Jersey-D), the Community Broadband Act of 2005 would give communities the right to build out telecom infrastructure and/or offer telecom services to their citizens. The bill would prevent states from pandering to the incumbent providers by prohibiting local governments from getting involved in telecom.
This quote by Lautenberg shows that the senators have done their homework and actually are familiar with the history of public services in the U.S., something that most leaders, especially at the state level, seem woefully ignorant of:
Broadband might not be as essential as water, but it’s becoming increasingly important in our competitive global economy. Those who are left out of the high-speed revolution will miss out on opportunities for better jobs and education and a higher quality of life.
A century ago, there were efforts to prevent local governments from providing electricity to residents. Opponents argued that private businesses would suffer if they faced competition from cities and towns. But community leaders recognized that their economic survival depended on the availability of electricity, and they knew it would take both private and public investment to bring electricity to all Americans.
A private report by Informa Telecoms & Media shows that Asian countries are deploying fiber to the home faster than ever. In Japan, there are now about 2.5 million homes and businesses with fiber connections, and 10 million are expected by 2010. FTTH connections in the U.S total probably well under half a million, and that may be wildly optimistic. NTT, just one of several Japanese fiber providers, charges about $60 a month for a 100 megabit fiber connection, compared to around $45 a month in the United States for a copper-based "broadband" connection with an average speed of 1-2 megabits.
In South Korea, Korea Telecom (KT) has stated that copper "lacked the stability" for Internet-based television broadcasting, and has chosen to provide "guaranteed" 100 megabit fiber connections to customers. KT has also stated they are replacing DSL with fiber.
Here in the United States, we are fiddling with trying to shove a few megabits of data over copper electric lines and hailing it as "broadband." How much longer are we going to remain asleep as a country before we realize that broadband is a critical economic development issue, and that we can't afford to keep investing in twenty year old copper technology?
The city of Wellington, New Zealand has created an MSAP service they call CityLink. It is exactly the MSAP concept, and like Blacksburg, which began offering MSAP service in 1999, ISPs have flocked to it because it lowers costs and enables them to provide better services.
BC.NET, a project of the British Columbia provincial government, is deploying what they call Transit Exchange Hubs in communities throughout the province.
The Transit Exchange Hub is similar in concept to the MSAP (Multimedia Services Access Point), which I designed and implemented in 1999 as part of the Blacksburg Electronic Village. Both the Hubs and the MSAP build on a standard piece of Internet systems architecture called a NAP, or Network Access Point. What NAPs do is allow different networks (remember that the Internet is a network of networks, not a single contiguous thing) to exchange data.
What is different about the MSAP/Transit Exchange approach is that it pushes the NAP down into communities and regions. The benefits can be dramatic--network performance can increase substantially and the cost of intracommunity network traffic can go down significantly. So MSAPs reduce costs and improve network performance. For local applications that are sensitive to time delays like videoconferencing, voice telephone calls, or gaming, the MSAP can be critical to performance and usability by keeping local data local and not requiring Internet Service Providers to haul large amounts of data across their very expensive Internet backbone connections.
An article called "The United States of Broadband" is available over at TomPaine.com [link no longer available]. It's well worth a read, as it takes the Federal government and the FCC in particular to task about the sorry state of broadband in the United States.
However, I am a bit contrarian compared to the article. While I do not think the FCC has done all it could, I am unconvinced that forcing the cable and telephone companies to carry competitor's traffic is the solution. That's a bit like saying FedEx should be forced to carry packages for UPS. As soon as you take the concept and apply in another business area, you usually can see what sounds good in theory does not make much sense in practice.
The article has done what so many other articles and papers have done: it confuses roads with the trucks that travel over the roads. Let's look at this way:
Our Roads Transport System
Our Digital Transport System
Infrastructure
Roads are built and maintained by the community for the use of all, including private firms
that want to use them to deliver goods and services.
Telecom duct, fiber, and wireless sites and towers are built and maintained by the community for the use of all, including private firms
that want to use them to deliver goods and services.
Access
Access to the community road system is provided by parking lots and driveways, built by property owners and/or developers and builders. Developers often build roads as well, and turn them over to the community to maintain.
Access to the community d system is provided by duct, fiber, and wireless systems, built by property owners and/or developers and builders. Developers often install telecom as well, and turn the duct over to the community to maintain.
Services
The local government uses roads to deliver government services. The local government does not compete with the private sector by trying to sell services like overnight package delivery. Private sector businesses use roads so that their own cars and trucks can deliver goods and services to customers. Because businesses do not have to build and maintain roads, all businesses benefit directly by being able to reach more customers at less expense. Governments pay for the cost of maintaining roads in part from (indirect) tax revenue from businesses that use those roads, and direct taxes on items like tires and gasoline.
The local government uses the digital transport system to deliver government services. The local government does not compete with the private sector by trying to sell services like broadband access or Voice over IP. Private sector businesses use the digital transport system so that they can deliver goods and services to customers. Because businesses do not have to build and maintain a digital road system, all businesses benefit directly by being able to reach more customers at less expense. Governments pay for the cost of maintaining the digital road system in part from (indirect) tax revenue from businesses that use those roads, and in part from direct use fees.
It really can be just like roads--a model that has worked well for decades. And it is not hard to understand if we keep things classified properly.