nanog mailing list archives

Re: FCCs RFC for the Definition of Broadband


From: JC Dill <jcdill.lists () gmail com>
Date: Thu, 27 Aug 2009 21:50:47 -0700

Leo Bicknell wrote:
What Telecom companies have done is confused infrastructure and
equipment.  It would be stupid to plan on making a profit on your
GSR over 30 years, after 10 it will be functionally obsolete.  When
it comes to equipment the idea of 1-3 year ROI's makes sense.
However, when it comes to fiber or copper in the ground or on a
pole it has a 20, 30, 40, or even 50 year life span.  To require
those assets to have a 1-3 year ROI is absurd.

What happens if we have improvements in data transmission systems such that whatever we put in now is obsolete in 15 years?

What happens if we put in billions of dollars of fiber, only to have fiber (and copper) obsolete as we roll out faster and faster wireless solutions?

IMHO the biggest obstacle to defining broadband is figuring out how to describe how it is used in a way that prevents an ILEC from installing it so that only the ILEC can use it. If the customer doesn't have at least 3 broadband choices, there's no real choice, and pricing will be artificially high and service options will be stagnant and few. Look at what happened to long distance rates and telephone services once Ma Bell was broken up and businesses started competing for customers. I remember when we paid more than $35 a month for long distance fees alone (and about that much more for our basic service, including phone "rental") when I was a teenager in the 1970s. Without competition, with inflation, that same long distance bill would easily be over $100/month today. Yest today, more than 30 years later you can get a cell phone with unlimited minutes, unlimited domestic long distance, for $35/month (e.g Metro PCS).

Let's not make this mistake again and let the ILECs use TARP funds to build "broadband" to the curb/home that only they get to use to provide internet services to the customers.

jc



Current thread: