BROADBAND DEPLOYMENT IN RESIDENTIAL NEIGHBORHOODS

[David Farber <dave () farber net>]

Begin forwarded message:

From: Dewayne Hendricks <dewayne () warpspeed com>
Date: October 15, 2004 11:40:41 AM EDT
To: Dewayne-Net Technology List <dewayne-net () warpspeed com>
Subject: [Dewayne-Net] BROADBAND DEPLOYMENT IN RESIDENTIAL NEIGHBORHOODS
Reply-To: dewayne () warpspeed com

[Note:  Here's a capsule summary of the FCC's broadband decision  
yesterday with pointers to the various comments on the FCC website for  
those of you who are interested in the details.  DLH]

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

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