Japanese broadband speeds corrected,etc.

[David Farber <dave () farber net>]

Begin forwarded message:

From: Dave Burstein <dave3 () dslprime com>
Date: October 19, 2004 3:46:59 PM EDT
To: dave () farber net
Cc: dewayne () warpspeed com, "David S. Isenberg" <isen () isen com>
Subject: Japanese broadband speeds corrected,etc.

Dave

     Isenberg, Malik et. al. are absolutely correct the U.S. is behind 
much of world, and currently falling further, in penetration, speed, 
and broadband services. However, the comment

 "In Japan they're even rolling out gigabit-per-second Fiber to the 
Home service priced at less than US$40 a month"

 is based on some press reports that are inaccurate. Actually, that 
gigabit is feeding a passive optical network, split as many as 32 ways, 
and actual customer speeds are typically under 100 meg. Still great 
compared to us, and even the 19 meg per customer PON fiber Verizon is 
putting in.

     The other crucial measure is how many can't be served, which is 
far below developed world standards in selected areas of the U.S. A 
general "solution" or subsidy is totally inappropriate when you look at 
the facts. SBC, Verizon, and many of the smaller locals are headed to 
90% to 100% ASAP, as is British Telecom, France Telecom, Bell Canada 
and others, with both rural and urban lines. SBC's 1/3 of the U.S, 
where the CEO says using repeaters they can and will reach 100%. SBC 
can get to 85% directly. Verizon also almost 1/3, Babbio says they are 
headed over 90% availability in 2004.

 The problem is specific telcos not investing for particular reasons. 
Qwest, whose CFO was fighting bankruptcy two years ago, is only around 
65%. Sprint's local phone net is about 75% covered, as the company is 
funding wireless instead of their local service. Century Tel doesn't 
have cable competition in half it's territory, so is in no rush to get 
DSL to those towns.

 Policy then is to get tough with the laggards. Qwest and Sprint's's 
local phone business remains profitable - they are squeezing it to fund 
the internet boom excesses of their world network.  

 100% broadband is a reasonable, easily achieved goal if faced 
directly, and not as an excuse to advance unrelated agendas. Loans, not 
grants or tax credits, are the only appropriate government handout, 
because DSL adds income at the margin anywhere 400 homes are within 
reach of fiber. There may be 1-4%  wireless, DSL or cable might major 
subsidy. Satellite, inexpensive when purchased in bulk, is a much 
better solution for those folks at a fraction of the cost.

 Dave Burstein,
 Editor
 DSL Prime 

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