Long term deals with FOX’s television stations in New York, Los Angeles, Austin, Dallas, Detroit, Orlando and Tampa are expiring on December 31st. More than 13 million households and 30 million people from New York to Los Angeles stand to lose some of America’s most popular entertainment including many of Fox’s cable channels, such as FX, SPEED, FUEL TV, Fox Movie Channel, Fox Reality Channel, Fox Soccer Channel, Fox Sports en Español, and FS Arizona, Florida, Houston, Indiana, Kansas City, Midwest, Southwest, West, and Prime Ticket, SportSouth, and Sun Sports unless we reach a fair agreement soon.
Fox programming included in the proposal has something for virtually everyone, everywhere – appealing to viewers who are passionate about Award-winning original dramas and comedies; live National Football League, Major League Baseball, National Basketball Association, NASCAR, National Hockey League, and Major League Soccer games; international sports competitions; racing; action-sports; and Spanish-language sports programming.
Alternatives:
Dish Network
Direct TV
Verizon FiOS
Friday, December 25, 2009
Wednesday, August 12, 2009
Stimulus billions fund rural broadband Internet
For businesses in rural America, fast Internet connections remain a scarce luxury. A $7 billion stimulus program aims to narrow the digital gap.
By Sharon McLoone, CNNMoney.com contributing writer
August 11, 2009: 4:30 AM ET
WASHINGTON (CNNMoney.com) -- Fast Internet access is a luxury most businesses take for granted these days, but in remote areas of the country, the staticky crackle of a dial-up modem connection remains a familiar sound. A $7.2 billion stimulus initiative aims to expand broadband access and speed up the modem's extinction.
Two federal agencies, the Commerce Department's National Telecommunications Information Administration (NTIA) and the Agriculture Department's Rural Utility Service, each landed billions from the Recovery Act to fund new broadband infrastructure projects. Applications are due this week for the first wave of grants and loans from those programs.
For entrepreneurs in rural areas, a broadband connection can be an economic lifeline. Alexis Gault lives in Asheville, a city of 74,000 at the mountainous western edge of North Carolina. After losing her $8 an hour job as a photographer's assistant, she decided to turn her part-time hobby into a full-time career. Gault launched Lush Life Originals, a custom clothes line she sells online.
She relies on a speedy Internet connection to send clients e-mails with high-resolution images, maintain her Web site, and keep up with her site's e-commerce. But it's not a connection she takes for granted: Gault's Internet provider is a local nonprofit, the Mountain Area Information Network (MAIN), that relies on grants and fundraising to supplement its service fees.
"Time is literally my money. If I'm not sewing, I'm not making money," Gault says. "If someone orders something and it's not in stock any more, I don't have to run to the library to use their broadband connection to update my Web site."
Charter Communications offer DSL (digital subscriber line) service in Gault's neighborhood, but she is not able to afford its higher monthly fees.
Wally Bowen, MAIN's executive director, sees a direct connection between Internet access and economic prosperity. "One thing that we've learned is that people started making significant progress in their lives when they started using the Internet," he says. "They were able to start new businesses, manage their health care insurance and medicine online, and get more job training."
MAIN has been operating as a nonprofit in North Carolina's rural mountains since 1996. The group got its start with an NTIA grant to build infrastructure to give the area's residents dial-up Internet access through a local phone call. MAIN also introduced Internet access at local public libraries and community centers.
In 2003, MAIN expanded to offer high-speed wireless connections. Today, the organization serves 1,200 dial-up subscribers in 14 counties, 400 wireless subscribers across four counties, and hosts some 450 Web sites. Outside of MAIN, residents face few choices. DSL lines and higher-speed broadband are available from larger firms in the town center and immediate outlying area, but not much further.
"Six out of 10 people who want our wireless broadband service can't get it," Bowen says.
He sees wireless technology, which get around the region's hollows and hills, as the best and most immediate broadband solution for residents. But there's very limited spectrum available for him to offer customers service, a problem he's looking to the Federal Communications Commission to fix. The FCC took action last year to free up more spectrum for situations like these, but it has yet to issue protocols on how technology should operate within the spectrum. Until it moves forward with those rules, none of the spectrum that was freed is available for use.
MAIN, working with several partners, is angling for a $50 million grant from the $7.2 billion stimulus funding pool for broadband projects. That coalition is looking to build an optical fiber network that would bring broadband access to residents in three counties. MAIN is also seeking a separate grant to build out wireless broadband to local public housing, community centers and fire stations.
Without the federal funds, MAIN can't afford to roll out those services. Things would remain "status quo," Bowen says.
That's an option the U.S. can't afford if it wants to retain its global lead as a technology innovator. America is now ranked 15th in the world on broadband access, according to the Organization for Economic Cooperation and Development. It was No. 1 in the mid-1990s.
The digital gap within the country is widening. More than two-thirds of U.S. households now subscribe to a broadband service, compared to just one-fifth five years ago, according to recent data from Leichtman Research Group. But in rural America, only 31% of residents have a broadband connection, according to the Pew Internet and American Life Project. The rural West leads in broadband connections, while the South is the worst laggard, census data says.
Sascha Meinrath, director of the Open Technology Initiative at Washington think tank New America Foundation, says lawmakers need to recognize that the state of the nation's broadband is an enormous, looming problem.
"Countries decades ago realized that you need to invest in highways if you want to have a modern economy," Meinrath says. "Those countries that didn't invest have been left behind. In the digital era, there will be those countries that don't invest and get left behind."
Do-it-yourself access
Not every region in need of a broadband buildout has turned to the government for money.
The city of Powell, Wyo., raised $6.5 million from private investors to build a high-speed fiber-to-the-home network for its 5,500 residents. The network took three years to build, and just launched in May. Qwest Communications (Q, Fortune 500) provides communications services in the area, but Logan says Qwest's connections are slower than the city's project.
"We've figured out an innovative way of funding this without taxpayers' money and without state, local or federal money," says Powell City Administrator Zane Logan.
TCT West, a regional communications company based in Basin, Wyo., is the city's service provider and has an exclusive contract with Powell for six years. "We're providing the infrastructure in the city, and we are giving TCT the ability to provide services and set rates," says Logan. "The idea was to keep businesses downtown and to attract more professional, technical-type businesses."
Logan has been down a similar path before. He was hired in 1992 as the city's electrical superintendent and worked to completely overhaul the local grid, from the substation to residents' houses. "It took 12 years, but one of the reasons I did that is because when a business comes to town they want to know who is your power company and how reliable is it," he says. "That got me to thinking about telecom."
He thinks the city's Internet gamble is already paying off: "Existing businesses here are expanding," Logan says. "People can stay at home and get as good and fast of a connection as in a big city."
Powell's broadband project has another economic fringe benefit: TCT West has been hiring Powell residents for customer service, installation and tech support.
Building a better map
The first step toward improving the nation's broadband infrastructure is finding out where the problem spots are. Some $350 million of the Recovery Act's $7.2 billion funding pool has been earmarked to map the country's broadband use and highlight which regions have high-quality access. The idea was put forward in a bill signed by President Bush last year, but the measure didn't allocate any funding for the initiative. The money showed up in President Obama's stimulus package.
Drew Clark, executive director of BroadbandCensus.com, a trade publication tracking the broadband stimulus funding, says better mapping data could be a boon for small businesses.
"A public and transparent map will be useful to helping businesses invest," he says. "You want to locate your business where there is broadband or where there's likely to be broadband. You need to know where the interstate highway type of connections are and where the dirt roads are."
The Federal Communications Commission has also been charged with presenting lawmakers with a national broadband plan by Feb. 17, 2010. One of its goals is to get affordable broadband to as many people as possible. The FCC is taking a flood of public comments on the matter and must digest them as part of putting together its recommendations. The issues it is grappling with include defining terms like "affordable broadband" and "underserved."
"We can restore economic vitality to underserved areas that for decades have not had the benefit of this IT knowledge base," says MAIN's Bowen. "People like [Microsoft cofounder] Bill Gates and others in Silicon Valley are bright people, but they had access to social capital to incubate and nurture them. The social capital has been drained out of rural America for several decades now. We can fix that."
By Sharon McLoone, CNNMoney.com contributing writer
August 11, 2009: 4:30 AM ET
WASHINGTON (CNNMoney.com) -- Fast Internet access is a luxury most businesses take for granted these days, but in remote areas of the country, the staticky crackle of a dial-up modem connection remains a familiar sound. A $7.2 billion stimulus initiative aims to expand broadband access and speed up the modem's extinction.
Two federal agencies, the Commerce Department's National Telecommunications Information Administration (NTIA) and the Agriculture Department's Rural Utility Service, each landed billions from the Recovery Act to fund new broadband infrastructure projects. Applications are due this week for the first wave of grants and loans from those programs.
For entrepreneurs in rural areas, a broadband connection can be an economic lifeline. Alexis Gault lives in Asheville, a city of 74,000 at the mountainous western edge of North Carolina. After losing her $8 an hour job as a photographer's assistant, she decided to turn her part-time hobby into a full-time career. Gault launched Lush Life Originals, a custom clothes line she sells online.
She relies on a speedy Internet connection to send clients e-mails with high-resolution images, maintain her Web site, and keep up with her site's e-commerce. But it's not a connection she takes for granted: Gault's Internet provider is a local nonprofit, the Mountain Area Information Network (MAIN), that relies on grants and fundraising to supplement its service fees.
"Time is literally my money. If I'm not sewing, I'm not making money," Gault says. "If someone orders something and it's not in stock any more, I don't have to run to the library to use their broadband connection to update my Web site."
Charter Communications offer DSL (digital subscriber line) service in Gault's neighborhood, but she is not able to afford its higher monthly fees.
Wally Bowen, MAIN's executive director, sees a direct connection between Internet access and economic prosperity. "One thing that we've learned is that people started making significant progress in their lives when they started using the Internet," he says. "They were able to start new businesses, manage their health care insurance and medicine online, and get more job training."
MAIN has been operating as a nonprofit in North Carolina's rural mountains since 1996. The group got its start with an NTIA grant to build infrastructure to give the area's residents dial-up Internet access through a local phone call. MAIN also introduced Internet access at local public libraries and community centers.
In 2003, MAIN expanded to offer high-speed wireless connections. Today, the organization serves 1,200 dial-up subscribers in 14 counties, 400 wireless subscribers across four counties, and hosts some 450 Web sites. Outside of MAIN, residents face few choices. DSL lines and higher-speed broadband are available from larger firms in the town center and immediate outlying area, but not much further.
"Six out of 10 people who want our wireless broadband service can't get it," Bowen says.
He sees wireless technology, which get around the region's hollows and hills, as the best and most immediate broadband solution for residents. But there's very limited spectrum available for him to offer customers service, a problem he's looking to the Federal Communications Commission to fix. The FCC took action last year to free up more spectrum for situations like these, but it has yet to issue protocols on how technology should operate within the spectrum. Until it moves forward with those rules, none of the spectrum that was freed is available for use.
MAIN, working with several partners, is angling for a $50 million grant from the $7.2 billion stimulus funding pool for broadband projects. That coalition is looking to build an optical fiber network that would bring broadband access to residents in three counties. MAIN is also seeking a separate grant to build out wireless broadband to local public housing, community centers and fire stations.
Without the federal funds, MAIN can't afford to roll out those services. Things would remain "status quo," Bowen says.
That's an option the U.S. can't afford if it wants to retain its global lead as a technology innovator. America is now ranked 15th in the world on broadband access, according to the Organization for Economic Cooperation and Development. It was No. 1 in the mid-1990s.
The digital gap within the country is widening. More than two-thirds of U.S. households now subscribe to a broadband service, compared to just one-fifth five years ago, according to recent data from Leichtman Research Group. But in rural America, only 31% of residents have a broadband connection, according to the Pew Internet and American Life Project. The rural West leads in broadband connections, while the South is the worst laggard, census data says.
Sascha Meinrath, director of the Open Technology Initiative at Washington think tank New America Foundation, says lawmakers need to recognize that the state of the nation's broadband is an enormous, looming problem.
"Countries decades ago realized that you need to invest in highways if you want to have a modern economy," Meinrath says. "Those countries that didn't invest have been left behind. In the digital era, there will be those countries that don't invest and get left behind."
Do-it-yourself access
Not every region in need of a broadband buildout has turned to the government for money.
The city of Powell, Wyo., raised $6.5 million from private investors to build a high-speed fiber-to-the-home network for its 5,500 residents. The network took three years to build, and just launched in May. Qwest Communications (Q, Fortune 500) provides communications services in the area, but Logan says Qwest's connections are slower than the city's project.
"We've figured out an innovative way of funding this without taxpayers' money and without state, local or federal money," says Powell City Administrator Zane Logan.
TCT West, a regional communications company based in Basin, Wyo., is the city's service provider and has an exclusive contract with Powell for six years. "We're providing the infrastructure in the city, and we are giving TCT the ability to provide services and set rates," says Logan. "The idea was to keep businesses downtown and to attract more professional, technical-type businesses."
Logan has been down a similar path before. He was hired in 1992 as the city's electrical superintendent and worked to completely overhaul the local grid, from the substation to residents' houses. "It took 12 years, but one of the reasons I did that is because when a business comes to town they want to know who is your power company and how reliable is it," he says. "That got me to thinking about telecom."
He thinks the city's Internet gamble is already paying off: "Existing businesses here are expanding," Logan says. "People can stay at home and get as good and fast of a connection as in a big city."
Powell's broadband project has another economic fringe benefit: TCT West has been hiring Powell residents for customer service, installation and tech support.
Building a better map
The first step toward improving the nation's broadband infrastructure is finding out where the problem spots are. Some $350 million of the Recovery Act's $7.2 billion funding pool has been earmarked to map the country's broadband use and highlight which regions have high-quality access. The idea was put forward in a bill signed by President Bush last year, but the measure didn't allocate any funding for the initiative. The money showed up in President Obama's stimulus package.
Drew Clark, executive director of BroadbandCensus.com, a trade publication tracking the broadband stimulus funding, says better mapping data could be a boon for small businesses.
"A public and transparent map will be useful to helping businesses invest," he says. "You want to locate your business where there is broadband or where there's likely to be broadband. You need to know where the interstate highway type of connections are and where the dirt roads are."
The Federal Communications Commission has also been charged with presenting lawmakers with a national broadband plan by Feb. 17, 2010. One of its goals is to get affordable broadband to as many people as possible. The FCC is taking a flood of public comments on the matter and must digest them as part of putting together its recommendations. The issues it is grappling with include defining terms like "affordable broadband" and "underserved."
"We can restore economic vitality to underserved areas that for decades have not had the benefit of this IT knowledge base," says MAIN's Bowen. "People like [Microsoft cofounder] Bill Gates and others in Silicon Valley are bright people, but they had access to social capital to incubate and nurture them. The social capital has been drained out of rural America for several decades now. We can fix that."
Wednesday, June 10, 2009
Verizon Submits Recommendations for National Broadband Plan
Verizon Communications submitted its suggestions on June 8 for the national broadband plan called for by Congress and President Obama. The suggestions are contained in a detailed, 10-point proposal filed with the Federal Communications Commission.
"Verizon looks forward to working with policymakers and other stakeholders in developing broadband policies that will ensure broadband availability to all Americans, encourage widespread adoption of broadband services, and empower consumers to make their own choices," the company said in our filing.
The FCC is assembling recommendations for Congress to consider for the plan, which is due in February 2010.
"A lively and open ecosystem of innovation and investment has helped to make broadband an integral part of the lives of millions of Americans, providing an ever-expanding array of services, applications and devices to address nearly any conceivable purpose," Verizon said. "Most consumers have choices among ever-more-robust broadband networks that meet their needs at home, at work, and on the go."
To continue that progress, Verizon suggested that, "Policymakers should ensure that any new policies maintain the healthy dynamics of the broadband marketplace that are currently creating and preserving jobs and leading to additional choices for consumers."
10 Key Elements
Verizon urged the FCC to include the following 10 elements in its recommendations to Congress:
A focused effort to encourage broadband demand.
A consumer-choice framework.
Encouraging continued innovation to improve cyber security for consumers and the nation.
Pursuing a consumer-focused approach to privacy.
Facilitating wireless broadband.
Pursuing a pro-growth regulatory approach.
Reforming the universal service fund to encourage broadband.
Encouraging broadband by encouraging IP-based services.
Effective implementation of stimulus programs.
Encouraging broadband adoption and deployment through tax reform.
How to Achieve Potential
"But much work remains to be done for broadband to achieve its full potential in the United States," the company said.
"First, policymakers -- together with industry and other stakeholders -- need to find ways of ensuring that all Americans have access to broadband," Verizon said. "Well over 90 percent" of Americans have access to broadband, and most can choose from at least two wireline, three wireless and two satellite broadband providers. This is a level of facilities-based competition hardly seen in any other country in the world. But gaps in access remain in some hard-to-serve, rural areas.
"Any national broadband plan should have as a top priority filling those gaps," the company said in its filing.
"Second, in many more areas, work remains to be done to address the other factors that prevent too many consumers from adopting broadband services," Verizon said. "Roughly 40 percent of Americans do not adopt broadband when it is available to them."
According to studies, the primary factors include the lack of computers and computer literacy, as well as "the failure to appreciate the potential relevance of broadband" to consumers' lives, Verizon said.
"Third, consumers should be empowered with choices in services, applications and devices that meet their many evolving uses of broadband," Verizon said. "[That] will depend on broadband providers and other providers of Internet services, applications and devices continuing to innovate and invest to spread the reach and capabilities of broadband and to continue the evolution of broadband networks and the services, applications, and devices that use broadband or the public Internet."
"By following this consumer-focused, pro-growth and pro-innovation framework and taking these steps to encourage broadband deployment and adoption, policymakers would encourage broadband deployment and adoption, and would empower consumers with an increasing array of choices," Verizon told the FCC.
"Verizon looks forward to working with policymakers and other stakeholders in developing broadband policies that will ensure broadband availability to all Americans, encourage widespread adoption of broadband services, and empower consumers to make their own choices," the company said in our filing.
The FCC is assembling recommendations for Congress to consider for the plan, which is due in February 2010.
"A lively and open ecosystem of innovation and investment has helped to make broadband an integral part of the lives of millions of Americans, providing an ever-expanding array of services, applications and devices to address nearly any conceivable purpose," Verizon said. "Most consumers have choices among ever-more-robust broadband networks that meet their needs at home, at work, and on the go."
To continue that progress, Verizon suggested that, "Policymakers should ensure that any new policies maintain the healthy dynamics of the broadband marketplace that are currently creating and preserving jobs and leading to additional choices for consumers."
10 Key Elements
Verizon urged the FCC to include the following 10 elements in its recommendations to Congress:
A focused effort to encourage broadband demand.
A consumer-choice framework.
Encouraging continued innovation to improve cyber security for consumers and the nation.
Pursuing a consumer-focused approach to privacy.
Facilitating wireless broadband.
Pursuing a pro-growth regulatory approach.
Reforming the universal service fund to encourage broadband.
Encouraging broadband by encouraging IP-based services.
Effective implementation of stimulus programs.
Encouraging broadband adoption and deployment through tax reform.
How to Achieve Potential
"But much work remains to be done for broadband to achieve its full potential in the United States," the company said.
"First, policymakers -- together with industry and other stakeholders -- need to find ways of ensuring that all Americans have access to broadband," Verizon said. "Well over 90 percent" of Americans have access to broadband, and most can choose from at least two wireline, three wireless and two satellite broadband providers. This is a level of facilities-based competition hardly seen in any other country in the world. But gaps in access remain in some hard-to-serve, rural areas.
"Any national broadband plan should have as a top priority filling those gaps," the company said in its filing.
"Second, in many more areas, work remains to be done to address the other factors that prevent too many consumers from adopting broadband services," Verizon said. "Roughly 40 percent of Americans do not adopt broadband when it is available to them."
According to studies, the primary factors include the lack of computers and computer literacy, as well as "the failure to appreciate the potential relevance of broadband" to consumers' lives, Verizon said.
"Third, consumers should be empowered with choices in services, applications and devices that meet their many evolving uses of broadband," Verizon said. "[That] will depend on broadband providers and other providers of Internet services, applications and devices continuing to innovate and invest to spread the reach and capabilities of broadband and to continue the evolution of broadband networks and the services, applications, and devices that use broadband or the public Internet."
"By following this consumer-focused, pro-growth and pro-innovation framework and taking these steps to encourage broadband deployment and adoption, policymakers would encourage broadband deployment and adoption, and would empower consumers with an increasing array of choices," Verizon told the FCC.
Saturday, May 30, 2009
OSP's Broadband Stimulus Update - May 29, 2009
by: Dr. Bernhard Deutsch
OSP Magazine
In mid-May, both the NTIA and RUS published their much-awaited Program Plans for the broadband technologies opportunities program (BTOP) and broadband recovery plan, respectively. The intent of these Program Plans was to clarify the objectives and define the measures that will be reported to Congress on a regular basis, as well as establish a schedule for the next 16 months until the end of the program in September 2010.
However, the agencies did not provide more detailed guidelines for the application form and process, as well as definitions of key terms like "unserved" and "underserved" or "broadband." The highly debated topic "Buy American" was not addressed at all. It can be assumed that the details of these definitions and the application process will be revealed with the first Notice of Funds Available, expected in June from both agencies.
It seems it will take the agencies longer than initially planned to award the first grants. The new timeline anticipates these grants to be decided towards the end of the year now. This means that projects that require funding from the stimulus plan may not start deployment until next year. So, as a service provider, you should start deploying whatever you planned to build out this year and not wait for released funds from the plan.
While the information did not describe the application review criteria, the listed measures that the agencies will report on and what they require from grant receivers give a strong hint on what the application should focus. Below is more detailed information on what the two agencies published, but first, here is a brief summary from my point of view:
Primary focus is job creation.
This is the primary objective of the American Recovery and Reinvestment Act. There is good news if you are thinking about building a fiber-to-the-home (FTTH) network because studies have shown that with almost 20 jobs per $1 million spent, FTTH generates the most jobs compared to other broadband technologies:
Broadband Technology Jobs per Million $ Invested
FTTH Weighted Average Multiplier 19.7437
Cable Weighted Average Multiplier 14.7412
DSL Weighted Average Multiplier 14.7412
Wireless Weighted Average Multiplier 14.6618
[Source: Economic Effect of Tax Incentives for Broadband Infrastructure Deployment, Empiris LLC, prepared on behalf of the FTTH Council, January 2009]
If you don't have the ability to accurately forecast the jobs directly created or retained for your project, it might be worthwhile to attach a copy of this study to your application. In addition, a survey among businesses in the area where deployment is planned might be beneficial to demonstrate that indirect jobs are created or maintained because of the broadband availability.
Focus on network capability.
I recently learned (painfully I might add) that in golf, speed and reach/distance are the same, and I think this is a great analogy for broadband networks. The better the speed is (or bandwidth of the technology used), the better the reach is. While the agencies have not defined "broadband," they clearly indicate that the number of homes reached with the network is very important. If a new technology is deployed in central offices, the best way to leverage this investment might be to choose the technology with the furthest reach. This is particularly of importance in rural areas.
Focus on customer take rate.
One of the criteria listed is the number of subscribers taking the new services. It is probably best to give an estimate from your business plan when applying. However, it might be more powerful to support your assumptions with market studies. An example for FTTH broadband networks is the recent market study by Render Vanderslice & Associates [Source: Render Vanderslice & Associates, Current FTTH Status, April 2009]: With approximately 4.4 million subscribers and approximately 13.8 million homes marketed, the overall subscriber take rate is an impressive 31.8 percent after only a few years, specifically if you take into account that the homes marketed grew 3.8 million between March 2008 and March 2009. But homes connected grew 1.5 million – a clear indication that take rates are still increasing. The data becomes even more compelling if you look at the take rate outside of Regional Bell Operating Companies: a 52.6 percent subscriber take rate should be a very good argument to tell application reviewers.
Focus on timeliness.
One aspect the application review process may evaluate is the ability to execute the project within the required timeframe of two years. It may be helpful to demonstrate that you utilize modern installation methods that accelerate and simplify the installation such as directional boring and preterminated cable solutions. Here studies have shown a time savings of 30 to 50 percent.
NTIA information update.
NTIA highlighted their BTOP's intent to "enable consumers in unserved and underserved areas…to access broadband services" with the goal that these deployments "serve as an important engine for economic development, enabling communities and regions to develop and expand job-creating businesses and institutions."
The NTIA defined the following measures – and what the grantee needs to provide:
• Job creation – Report on the number and type of jobs created directly by the program.
• Expanded broadband access – Number of areas where service will be made available or improved, and how many homes and businesses will be passed by the network.
• Stimulate private-sector investments – Amount and types of investments generated from ARRA funded projects.
• High-speed access to "strategic institutions" – New equipment and capacity and estimated number of end-users who are currently using or forecasted to use the new infrastructure.
• Encourage broadband demand – New subscribers generated from demand-side projects.
BTOP's Program Office, led by its Compliance Officer, will work closely with the Grants Office to develop formal guidance for conducting quarterly desk reviews and onsite monitoring visits. NTIA is currently developing internal procedures and controls for assigning risk to grantees for the purpose of reporting and monitoring.
NTIA understands they need support in this program and plans to close on its procurement for grant program assistance services with award of this contract in June 2009. They are preparing for the "initial solicitation for proposals" and expect to publish the first Notice of Funds Availability (NOFA) also in June 2009. They stated that they plan to review these proposals between September and December 2009 with the initial grants being awarded in December 2009. The second and third "solicitation for proposals" are planned for October to December 2009 and April to June 2010, respectively. As a reminder, all grants have to be awarded by September 2010.
RUS information update.
RUS has issued an RFQ to procure a contractor for implementation, administration and oversight assistance. It plans to publish a first NOFA in June with awards for this first funding round by the end of 2009 – additional NOFAs are expected to follow with awards between the second and fourth quarter of 2010.
The USDA's RUS defined the following measures – and I think it is fair to assume that the grantee is required to provide this information on a regular basis:
• New or retained businesses in areas funded.
• Jobs created or saved (direct via network planning, engineering, construction and maintenance, and indirect from existing and new companies that utilize the new broadband access).
• Number of households and businesses receiving first-time access.
• Number of households and businesses with improved broadband access.
• Number of educational, health care and public safety providers receiving access.
Grantees will be required to report no less than quarterly after funds project benchmarks. The project performance will be tracked at least quarterly, with some measures being reported monthly and annual CPA audits will be required from all applicants. In addition, RUS field accountants will conduct audits upon project completion, and they mentioned the option to hire outside contractors to provide additional monitoring and evaluation.
The RUS also defined its expectations from the implementation of the plan to "improve the rural quality of life" by new and improved services for businesses and residences, as well as critical facilities (e.g., educational institutions, health care providers, public service/safety, and local, state and federal government).
For any questions, please contact me at econstimulusinfo@corning.com
Sources:
• RUS http://www.recovery.gov/?q=content/program-plan&program_id=5408
• NTIA http://www.recovery.gov/?q=content/program-plan&program_id=5517#measures
Legal Disclaimer: This material is intended to provide general information about that portion of the American Recovery and Reinvestment Act of 2009 (the "Act") related to broadband deployments in the United States. These materials are based on information from multiple sources (e.g., USDA and USDC presentations, webinars by industry associations, the Act). Many factors, including the final provisions of the Act, any accompanying regulations and other government programs may change, delay or terminate public funds for broadband deployment. Corning Cable Systems makes no promises about, and does not assume any liability for, the accuracy or completeness of the information provided in this presentation. Corning Cable Systems does not assume any obligation to update this presentation or you about changes to the Act.
OSP Magazine
In mid-May, both the NTIA and RUS published their much-awaited Program Plans for the broadband technologies opportunities program (BTOP) and broadband recovery plan, respectively. The intent of these Program Plans was to clarify the objectives and define the measures that will be reported to Congress on a regular basis, as well as establish a schedule for the next 16 months until the end of the program in September 2010.
However, the agencies did not provide more detailed guidelines for the application form and process, as well as definitions of key terms like "unserved" and "underserved" or "broadband." The highly debated topic "Buy American" was not addressed at all. It can be assumed that the details of these definitions and the application process will be revealed with the first Notice of Funds Available, expected in June from both agencies.
It seems it will take the agencies longer than initially planned to award the first grants. The new timeline anticipates these grants to be decided towards the end of the year now. This means that projects that require funding from the stimulus plan may not start deployment until next year. So, as a service provider, you should start deploying whatever you planned to build out this year and not wait for released funds from the plan.
While the information did not describe the application review criteria, the listed measures that the agencies will report on and what they require from grant receivers give a strong hint on what the application should focus. Below is more detailed information on what the two agencies published, but first, here is a brief summary from my point of view:
Primary focus is job creation.
This is the primary objective of the American Recovery and Reinvestment Act. There is good news if you are thinking about building a fiber-to-the-home (FTTH) network because studies have shown that with almost 20 jobs per $1 million spent, FTTH generates the most jobs compared to other broadband technologies:
Broadband Technology Jobs per Million $ Invested
FTTH Weighted Average Multiplier 19.7437
Cable Weighted Average Multiplier 14.7412
DSL Weighted Average Multiplier 14.7412
Wireless Weighted Average Multiplier 14.6618
[Source: Economic Effect of Tax Incentives for Broadband Infrastructure Deployment, Empiris LLC, prepared on behalf of the FTTH Council, January 2009]
If you don't have the ability to accurately forecast the jobs directly created or retained for your project, it might be worthwhile to attach a copy of this study to your application. In addition, a survey among businesses in the area where deployment is planned might be beneficial to demonstrate that indirect jobs are created or maintained because of the broadband availability.
Focus on network capability.
I recently learned (painfully I might add) that in golf, speed and reach/distance are the same, and I think this is a great analogy for broadband networks. The better the speed is (or bandwidth of the technology used), the better the reach is. While the agencies have not defined "broadband," they clearly indicate that the number of homes reached with the network is very important. If a new technology is deployed in central offices, the best way to leverage this investment might be to choose the technology with the furthest reach. This is particularly of importance in rural areas.
Focus on customer take rate.
One of the criteria listed is the number of subscribers taking the new services. It is probably best to give an estimate from your business plan when applying. However, it might be more powerful to support your assumptions with market studies. An example for FTTH broadband networks is the recent market study by Render Vanderslice & Associates [Source: Render Vanderslice & Associates, Current FTTH Status, April 2009]: With approximately 4.4 million subscribers and approximately 13.8 million homes marketed, the overall subscriber take rate is an impressive 31.8 percent after only a few years, specifically if you take into account that the homes marketed grew 3.8 million between March 2008 and March 2009. But homes connected grew 1.5 million – a clear indication that take rates are still increasing. The data becomes even more compelling if you look at the take rate outside of Regional Bell Operating Companies: a 52.6 percent subscriber take rate should be a very good argument to tell application reviewers.
Focus on timeliness.
One aspect the application review process may evaluate is the ability to execute the project within the required timeframe of two years. It may be helpful to demonstrate that you utilize modern installation methods that accelerate and simplify the installation such as directional boring and preterminated cable solutions. Here studies have shown a time savings of 30 to 50 percent.
NTIA information update.
NTIA highlighted their BTOP's intent to "enable consumers in unserved and underserved areas…to access broadband services" with the goal that these deployments "serve as an important engine for economic development, enabling communities and regions to develop and expand job-creating businesses and institutions."
The NTIA defined the following measures – and what the grantee needs to provide:
• Job creation – Report on the number and type of jobs created directly by the program.
• Expanded broadband access – Number of areas where service will be made available or improved, and how many homes and businesses will be passed by the network.
• Stimulate private-sector investments – Amount and types of investments generated from ARRA funded projects.
• High-speed access to "strategic institutions" – New equipment and capacity and estimated number of end-users who are currently using or forecasted to use the new infrastructure.
• Encourage broadband demand – New subscribers generated from demand-side projects.
BTOP's Program Office, led by its Compliance Officer, will work closely with the Grants Office to develop formal guidance for conducting quarterly desk reviews and onsite monitoring visits. NTIA is currently developing internal procedures and controls for assigning risk to grantees for the purpose of reporting and monitoring.
NTIA understands they need support in this program and plans to close on its procurement for grant program assistance services with award of this contract in June 2009. They are preparing for the "initial solicitation for proposals" and expect to publish the first Notice of Funds Availability (NOFA) also in June 2009. They stated that they plan to review these proposals between September and December 2009 with the initial grants being awarded in December 2009. The second and third "solicitation for proposals" are planned for October to December 2009 and April to June 2010, respectively. As a reminder, all grants have to be awarded by September 2010.
RUS information update.
RUS has issued an RFQ to procure a contractor for implementation, administration and oversight assistance. It plans to publish a first NOFA in June with awards for this first funding round by the end of 2009 – additional NOFAs are expected to follow with awards between the second and fourth quarter of 2010.
The USDA's RUS defined the following measures – and I think it is fair to assume that the grantee is required to provide this information on a regular basis:
• New or retained businesses in areas funded.
• Jobs created or saved (direct via network planning, engineering, construction and maintenance, and indirect from existing and new companies that utilize the new broadband access).
• Number of households and businesses receiving first-time access.
• Number of households and businesses with improved broadband access.
• Number of educational, health care and public safety providers receiving access.
Grantees will be required to report no less than quarterly after funds project benchmarks. The project performance will be tracked at least quarterly, with some measures being reported monthly and annual CPA audits will be required from all applicants. In addition, RUS field accountants will conduct audits upon project completion, and they mentioned the option to hire outside contractors to provide additional monitoring and evaluation.
The RUS also defined its expectations from the implementation of the plan to "improve the rural quality of life" by new and improved services for businesses and residences, as well as critical facilities (e.g., educational institutions, health care providers, public service/safety, and local, state and federal government).
For any questions, please contact me at econstimulusinfo@corning.com
Sources:
• RUS http://www.recovery.gov/?q=content/program-plan&program_id=5408
• NTIA http://www.recovery.gov/?q=content/program-plan&program_id=5517#measures
Legal Disclaimer: This material is intended to provide general information about that portion of the American Recovery and Reinvestment Act of 2009 (the "Act") related to broadband deployments in the United States. These materials are based on information from multiple sources (e.g., USDA and USDC presentations, webinars by industry associations, the Act). Many factors, including the final provisions of the Act, any accompanying regulations and other government programs may change, delay or terminate public funds for broadband deployment. Corning Cable Systems makes no promises about, and does not assume any liability for, the accuracy or completeness of the information provided in this presentation. Corning Cable Systems does not assume any obligation to update this presentation or you about changes to the Act.
Wednesday, May 27, 2009
Updated: Verizon preps 100 Mb/s FiOS for 2009
Dec 4, 2008 3:19 PM, By Ed Gubbins
Verizon Communications is preparing to enable 100-Mb/s broadband services next year for its fiber-to-the-premises network, according to Vincent O’Byrne, Verizon’s technology director.
After trialing 100-Mb/s services to a small number of users for at least a year, O’Byrne said at an event today held by Lightwave magazine, “That will be coming next year.”
However, a Verizon spokesperson contacted Telephony Friday to clarify that O'Byrne was not saying the company would necessarily roll out 100-Mb/s services next year. "Verizon expects to have its delivery processes for speeds like that locked down in 2009 so that service with speeds approaching 100 Mb/s would be enabled in the very near future," the spokesperson said. "We have no product ready to announce for deployment in 2009."
The move toward greater speed is justified by new services that will greatly increase residential bandwidth consumption, he said. “A lot of these different TVs will have inordinate demand on the bandwidth that’s required on the network in order to support them. In some cases, the requirements will be much greater than 100 Mb/s to the customer. In parallel to that, a number of TVs, a number of DVRs and network storage devices in the home will increase individual demand from customers on the network.”
For that reason, Verizon is already investigating possible successors to the GPON technology it began rolling out last year and ramped significantly this year. But O’Byrne reiterated today that GPON will serve Verizon’s needs for the foreseeable future and that post-GPON technologies aren’t likely to be standardized for a few years. Verizon’s first-generation FiOS technology, BPON, can support 100 Mb/s service, O’Byrne said, and GPON can support much more.
This summer, Verizon unveiled a new set of home gateways for FiOS aimed at boosting up in-home networking speeds from 75 Mb/s to 175 Mb/s.
At another industry event two years ago, Terry Denson, vice president of FiOS TV content strategy and acquisition for Verizon, said “very few” customers were asking for 100 Mb/s. “But it raises the ante on the competitive landscape, so that customers believe that 100 Mb/s is what they need to have,” he said in 2007. “A hundred meg ends up being a threshold because it's sexy. I don't think customer behavior is going to get there for several years. Some outliers will demand that and maybe more. But what really drives it isn't so much consumer demand. It's competitive marketing tactics.”
Verizon Communications is preparing to enable 100-Mb/s broadband services next year for its fiber-to-the-premises network, according to Vincent O’Byrne, Verizon’s technology director.
After trialing 100-Mb/s services to a small number of users for at least a year, O’Byrne said at an event today held by Lightwave magazine, “That will be coming next year.”
However, a Verizon spokesperson contacted Telephony Friday to clarify that O'Byrne was not saying the company would necessarily roll out 100-Mb/s services next year. "Verizon expects to have its delivery processes for speeds like that locked down in 2009 so that service with speeds approaching 100 Mb/s would be enabled in the very near future," the spokesperson said. "We have no product ready to announce for deployment in 2009."
The move toward greater speed is justified by new services that will greatly increase residential bandwidth consumption, he said. “A lot of these different TVs will have inordinate demand on the bandwidth that’s required on the network in order to support them. In some cases, the requirements will be much greater than 100 Mb/s to the customer. In parallel to that, a number of TVs, a number of DVRs and network storage devices in the home will increase individual demand from customers on the network.”
For that reason, Verizon is already investigating possible successors to the GPON technology it began rolling out last year and ramped significantly this year. But O’Byrne reiterated today that GPON will serve Verizon’s needs for the foreseeable future and that post-GPON technologies aren’t likely to be standardized for a few years. Verizon’s first-generation FiOS technology, BPON, can support 100 Mb/s service, O’Byrne said, and GPON can support much more.
This summer, Verizon unveiled a new set of home gateways for FiOS aimed at boosting up in-home networking speeds from 75 Mb/s to 175 Mb/s.
At another industry event two years ago, Terry Denson, vice president of FiOS TV content strategy and acquisition for Verizon, said “very few” customers were asking for 100 Mb/s. “But it raises the ante on the competitive landscape, so that customers believe that 100 Mb/s is what they need to have,” he said in 2007. “A hundred meg ends up being a threshold because it's sexy. I don't think customer behavior is going to get there for several years. Some outliers will demand that and maybe more. But what really drives it isn't so much consumer demand. It's competitive marketing tactics.”
Friday, April 24, 2009
Verizon Says Wireless Innovation Can Help Economy
Verizon Says Wireless Innovation Can Help Economy Source:
www.verizon.com
A new business model is emerging that will make the next 25 years of wireless industry growth and innovation every bit as dynamic as the first 25 years - an outcome that can be hugely beneficial to the U.S. economy, according to Ivan Seidenberg, chairman and CEO of Verizon Communications Inc.
In an address to the CTIA wireless conference on April 1, Seidenberg said that Verizon, from its position as the nation's largest wireless provider, sees the industry on the verge of a tipping point that will unleash the growth potential of next-generation wireless technology.
"I do not mean to minimize the challenges we face - as an industry or a country - as we try to get our economy going again," Seidenberg said. "But wireless innovation has been a foundation of our country's prosperity for the last 25 years, and I'm confident that this great and vibrant industry will continue to be a leader as we put our economy back on the path to growth."
He said that as the wireless industry harnesses the full innovative power of its technology, it can provide a new set of tools for addressing social issues, such as improving public safety, making businesses more productive, saving energy, improving the quality and reducing the cost of health care, and using wireless broadband to expand the economic opportunities of the digital era more broadly across society.
Seidenberg also warned that this growth and progress could be derailed, and he urged the wireless industry to focus on common issues and rally around creative solutions that will create value for customers and opportunity across the whole industry.
One challenge he cited was the need to come together on compatibility and standards. He said the market is pressing the wireless industry toward openness and compatibility, which would standardize the environment for application development. He called the global standards for LTE (long-term evolution, the next generation of wireless broadband technology) "a big step" in that direction.
A second challenge he cited was the need to maintain an environment conducive to continued investment and competition.
Another common issue Seidenberg cited was the need to come together to use the technological resources of the wireless industry to ensure national security and public safety by creating a 21st Century communications system for first-responders.
He said: "The key is to give public safety agencies the spectrum they need to meet their current and future needs - and, eight years out from 9/11, we cannot afford to wade through another round of auctions and redundant network construction to get there. Fortunately, there's another answer: assigning the D-block spectrum directly to state and local public safety agencies, then letting them work with local network providers to create the robust, interoperable system this country needs."
If common challenges are addressed, Seidenberg said, he sees the industry on the cusp of "the next wave of wireless growth." He said that Verizon has several initiatives under way to help lead the industry to this next level.
Seidenberg said that the fourth-generation LTE technology that Verizon Wireless is deploying throughout its network "will speed the transition to a truly globalized mobile broadband experience."
"LTE is quickly emerging as the global standard," Seidenberg said. "We're moving fast to get to 4G. Working with Vodafone, we've completed the market trials and standards work. We will begin deployment later this year with a few commercially-ready markets and will roll it out to 25 or 30 markets in 2010, with the expectation of faster rollout thereafter."
This infrastructure is "just one piece of the puzzle," he added. "It's the combination of devices, applications and network capabilities that will really cause this market to take off. No single company will be able to envision, let alone provide, every aspect of this whole 4G ecosystem on its own. That's why we're working with partners, entrepreneurs and inventors from across the industry to create the next-generation products and services."
At the end of 2007, Verizon announced its Open Development program - a process for certifying new wireless devices, software, and applications to run on its networks. Seidenberg said the company has so far certified 36 devices through this model, with more in the pipeline. "We expect this process to really rev up as we deploy 4G," he said.
In another initiative designed to fill up the LTE pipeline, Seidenberg said Verizon plans to launch the Verizon Wireless LTE Innovation Center later this year as an incubator for new products in the areas of consumer electronics, telematics, and machine-to-machine products for health care, security, and utility metering.
www.verizon.com
A new business model is emerging that will make the next 25 years of wireless industry growth and innovation every bit as dynamic as the first 25 years - an outcome that can be hugely beneficial to the U.S. economy, according to Ivan Seidenberg, chairman and CEO of Verizon Communications Inc.
In an address to the CTIA wireless conference on April 1, Seidenberg said that Verizon, from its position as the nation's largest wireless provider, sees the industry on the verge of a tipping point that will unleash the growth potential of next-generation wireless technology.
"I do not mean to minimize the challenges we face - as an industry or a country - as we try to get our economy going again," Seidenberg said. "But wireless innovation has been a foundation of our country's prosperity for the last 25 years, and I'm confident that this great and vibrant industry will continue to be a leader as we put our economy back on the path to growth."
He said that as the wireless industry harnesses the full innovative power of its technology, it can provide a new set of tools for addressing social issues, such as improving public safety, making businesses more productive, saving energy, improving the quality and reducing the cost of health care, and using wireless broadband to expand the economic opportunities of the digital era more broadly across society.
Seidenberg also warned that this growth and progress could be derailed, and he urged the wireless industry to focus on common issues and rally around creative solutions that will create value for customers and opportunity across the whole industry.
One challenge he cited was the need to come together on compatibility and standards. He said the market is pressing the wireless industry toward openness and compatibility, which would standardize the environment for application development. He called the global standards for LTE (long-term evolution, the next generation of wireless broadband technology) "a big step" in that direction.
A second challenge he cited was the need to maintain an environment conducive to continued investment and competition.
Another common issue Seidenberg cited was the need to come together to use the technological resources of the wireless industry to ensure national security and public safety by creating a 21st Century communications system for first-responders.
He said: "The key is to give public safety agencies the spectrum they need to meet their current and future needs - and, eight years out from 9/11, we cannot afford to wade through another round of auctions and redundant network construction to get there. Fortunately, there's another answer: assigning the D-block spectrum directly to state and local public safety agencies, then letting them work with local network providers to create the robust, interoperable system this country needs."
If common challenges are addressed, Seidenberg said, he sees the industry on the cusp of "the next wave of wireless growth." He said that Verizon has several initiatives under way to help lead the industry to this next level.
Seidenberg said that the fourth-generation LTE technology that Verizon Wireless is deploying throughout its network "will speed the transition to a truly globalized mobile broadband experience."
"LTE is quickly emerging as the global standard," Seidenberg said. "We're moving fast to get to 4G. Working with Vodafone, we've completed the market trials and standards work. We will begin deployment later this year with a few commercially-ready markets and will roll it out to 25 or 30 markets in 2010, with the expectation of faster rollout thereafter."
This infrastructure is "just one piece of the puzzle," he added. "It's the combination of devices, applications and network capabilities that will really cause this market to take off. No single company will be able to envision, let alone provide, every aspect of this whole 4G ecosystem on its own. That's why we're working with partners, entrepreneurs and inventors from across the industry to create the next-generation products and services."
At the end of 2007, Verizon announced its Open Development program - a process for certifying new wireless devices, software, and applications to run on its networks. Seidenberg said the company has so far certified 36 devices through this model, with more in the pipeline. "We expect this process to really rev up as we deploy 4G," he said.
In another initiative designed to fill up the LTE pipeline, Seidenberg said Verizon plans to launch the Verizon Wireless LTE Innovation Center later this year as an incubator for new products in the areas of consumer electronics, telematics, and machine-to-machine products for health care, security, and utility metering.
Monday, April 06, 2009
Economic Stimulus Funds for Service Providers
EXCLUSIVE FEATURE -- Economic Stimulus Funds for Service ProvidersSource: www.ospmag.com
By Dr. Bernhard Deutsch, Director of Marketing and Market Development, Corning Cable Systems
When it comes to the economic stimulus package, enormous sums of money are being considered to jump-start the economy. There is also considerable uncertainty regarding where and how this money will be spent. This column intends to inform OSP® Magazine's readers regularly about the status of the broadband portion of the American Recovery and Reinvestment Act of 2009 (ARRA), signed into law on February 17, 2009, and what it means to telecommunications service providers.
The first step is to put the numbers in perspective. Out of the roughly $787 billion in the ARRA, approximately $26.4 billion is targeted for agricultural, rural aid and the FDA. Out of this, "only" $7.2 billion is assigned to the "Broadband Stimulus" package. This funding can be divided into two groups: $2.5 billion will be administrated by the Rural Utility Services (RUS) of the U.S. Department of Agriculture and $4.7 billion will be administrated by the Department of Commerce's National Telecommunications and Information Administration (NTIA) under the
Broadband Technology Opportunity Program (BTOP).
- The RUS funds will be distributed as grants, loans and loan guarantees, but no guidance has yet been provided regarding how the money should be split into these three categories. However, in their initial webcast on March 10, 2009, David Villano, Assistant Administrator for Telecommunication Programs of the USDA said that they prefer loan guarantees as this would allow them to support more applications.
- There are many categories within the NTIA funds that are intended for other uses besides broadband deployment by service providers: - $350 million for broadband mapping- $250 million for innovative programs to encourage sustainable adoption of broadband service - $200 million for expanding public computer center capacity- $10 million allocated for audits and oversight (transferred to Department of Commerce) - Three percent available for program administrative costs (~$141 million).
So if you've done the math, there is approximately $3.8 billion left for true broadband deployments from the NTIA funds. Together with the $2.5 billion from RUS, the total available funds for broadband deployment is about $6.4 billion – not enough to cover all of rural America but enough to help a large number of communities receive or improve their broadband services.
The next step is to review the current status of the rules and requirements development. Both programs, RUS and NTIA require that funds must be awarded by September 30, 2010, with substantial work to be completed within 2 years from grant award – so technically speaking, the latest spending date by service providers is September 30, 2012. Both agencies want to move fast and plan to issue three Notices of Funding Availability (NOFA) followed by three phases, each three months long to award the grants within that period of time. The first NOFA is expected in late March or early April. In addition, both agencies will publicly report applicants and grant receivers – after all it is the taxpayers' money that is spent, so full transparency will be required. The law requests the agencies work together and with the FCC to further define the rules and requirements. In addition, the applicants are required to comply with the FCC's non-discrimination and network interconnection obligations and to include the four principles of the
FCC's broadband policy statement (adopted August 5, 2005) by which consumers are entitled to:
- Access the lawful Internet content of their choice
- Run applications and use services of their choice, subject to the needs of law enforcement
- Connect their choice of legal devices that do not harm the network
- Competition among network providers, application and service providers, and content providers
For telecommunication service providers this should be nothing new.
Now that we have reviewed program similarities, here are some of the differences. To facilitate rural economic development, RUS funds are available for broadband infrastructure in the U.S. where 75 percent of the area to be served shall be in a "rural" area without "sufficient" access to "high speed broadband" service "as determined by the Secretary of Agriculture." Priority shall be given to projects that:
- Provide end-users a choice of more than one service provider
- Provide service to the highest proportion of rural residents without access to broadband services
- Are from borrowers or former borrowers under title II of the Rural Electrification Act of 1936 (or include such borrowers) – RUS has published latest list on February 4, 2009, on their Web site
- Prove that all project elements will be fully funded, can be completed and can promptly begin following approval
If RUS funds are received, then no NTIA funds will become available (no "double dipping") for the same project or equipment – and vice versa.
To apply for funding from NTIA, an applicant must be a government entity, a non-profit entity (e.g., rural telephone cooperatives may qualify) or any other entity that the NTIA finds by rule to be in the public interest (e.g., members of organizations like NTCA or U.S. Telecom, etc. may qualify automatically). Funding will be provided for:
- Improving broadband access in "unserved/underserved" areas
- Broadband education, awareness, access, equipment
- Support of certain entities/organizations (e.g., schools, libraries, healthcare providers)
- Improving use of broadband access for public safety agencies
- Stimulating broadband demand
You may have noticed many of the words above are in quotation marks, which indicates there are quite a few definitions to be clarified before the agencies can start reviewing applications. Also under discussion is whether or not the same requirements should apply to wireline and wireless broadband deployments or if they should be different. Another fundamental issue is determining the priority in ranking applications to meet the objectives of the programs; clearly, the programs are intended to create jobs – this is what our country needs the most at this time.
The broadband stimulus plan, in particular, is meant to do so by bridging the "digital divide" to ensure that rural areas have the same broadband offerings that urban areas have, where download speeds of up to 50 Mb/s and sometimes even more are already offered. The programs are also intended to increase the competitiveness of our nation in terms of broadband capability, to catch up with nations that have, on average, more than 50 Mb/s available per household, such as Japan or Korea. However, the money is not enough to achieve this for all. It is important to develop a ranking system that clarifies the objectives—connect as many communities as possible, or connect communities with high quality, high performance services.
The application process has not been fully developed and communicated, but the existing RUS loan program may serve as a model. However, the Secretary of Agriculture must submit to Congress a report on planned spending and actual obligations describing the use of the funds within 90 days of enactment (May 18, 2009) – so time is of the essence here.
NTIA plans to consider if the project increases "affordability" of and "subscribership" to services to the greatest population in an area, if it provides the greatest broadband speeds possible to the greatest population in an area, and if it enhances service for health-care delivery, education or children. They will also consider if the applicant is a "socially- and economically-disadvantaged small business" (e.g., Indian tribe or Hawaiian native owned) and ensure that it does not result in "unjust enrichment."
Again, many of the terms are in quotation marks and need further work by the agencies. This is why the agencies were on a road trip until March 24, seeking feedback via public hearings. The agencies received a lot of comments and suggestions to clarify those terms, specifically how broadband should be defined. Another key topic was to streamline the process and award grants as quickly as possible while balancing the need to avoid waste, fraud and abuse. [Note: The full transcripts of these meetings can be found at http://www.ntia.doc.gov/broadbandgrants/meetings.html
Several industry associations such as the FTTH Council or PCIA Wireless have already or are in the process of filing comments. Service providers have the opportunity to influence the plan's rules by contacting the agencies directly with their proposals to clarify the definitions and process requirements. They need to do so quickly; the deadline for comments to the RUS and NTIA is April 13, 2009. For help with contacts or to discuss what the best definitions are, please contact me at econstimulusinfo@corning.com.
By Dr. Bernhard Deutsch, Director of Marketing and Market Development, Corning Cable Systems
When it comes to the economic stimulus package, enormous sums of money are being considered to jump-start the economy. There is also considerable uncertainty regarding where and how this money will be spent. This column intends to inform OSP® Magazine's readers regularly about the status of the broadband portion of the American Recovery and Reinvestment Act of 2009 (ARRA), signed into law on February 17, 2009, and what it means to telecommunications service providers.
The first step is to put the numbers in perspective. Out of the roughly $787 billion in the ARRA, approximately $26.4 billion is targeted for agricultural, rural aid and the FDA. Out of this, "only" $7.2 billion is assigned to the "Broadband Stimulus" package. This funding can be divided into two groups: $2.5 billion will be administrated by the Rural Utility Services (RUS) of the U.S. Department of Agriculture and $4.7 billion will be administrated by the Department of Commerce's National Telecommunications and Information Administration (NTIA) under the
Broadband Technology Opportunity Program (BTOP).
- The RUS funds will be distributed as grants, loans and loan guarantees, but no guidance has yet been provided regarding how the money should be split into these three categories. However, in their initial webcast on March 10, 2009, David Villano, Assistant Administrator for Telecommunication Programs of the USDA said that they prefer loan guarantees as this would allow them to support more applications.
- There are many categories within the NTIA funds that are intended for other uses besides broadband deployment by service providers: - $350 million for broadband mapping- $250 million for innovative programs to encourage sustainable adoption of broadband service - $200 million for expanding public computer center capacity- $10 million allocated for audits and oversight (transferred to Department of Commerce) - Three percent available for program administrative costs (~$141 million).
So if you've done the math, there is approximately $3.8 billion left for true broadband deployments from the NTIA funds. Together with the $2.5 billion from RUS, the total available funds for broadband deployment is about $6.4 billion – not enough to cover all of rural America but enough to help a large number of communities receive or improve their broadband services.
The next step is to review the current status of the rules and requirements development. Both programs, RUS and NTIA require that funds must be awarded by September 30, 2010, with substantial work to be completed within 2 years from grant award – so technically speaking, the latest spending date by service providers is September 30, 2012. Both agencies want to move fast and plan to issue three Notices of Funding Availability (NOFA) followed by three phases, each three months long to award the grants within that period of time. The first NOFA is expected in late March or early April. In addition, both agencies will publicly report applicants and grant receivers – after all it is the taxpayers' money that is spent, so full transparency will be required. The law requests the agencies work together and with the FCC to further define the rules and requirements. In addition, the applicants are required to comply with the FCC's non-discrimination and network interconnection obligations and to include the four principles of the
FCC's broadband policy statement (adopted August 5, 2005) by which consumers are entitled to:
- Access the lawful Internet content of their choice
- Run applications and use services of their choice, subject to the needs of law enforcement
- Connect their choice of legal devices that do not harm the network
- Competition among network providers, application and service providers, and content providers
For telecommunication service providers this should be nothing new.
Now that we have reviewed program similarities, here are some of the differences. To facilitate rural economic development, RUS funds are available for broadband infrastructure in the U.S. where 75 percent of the area to be served shall be in a "rural" area without "sufficient" access to "high speed broadband" service "as determined by the Secretary of Agriculture." Priority shall be given to projects that:
- Provide end-users a choice of more than one service provider
- Provide service to the highest proportion of rural residents without access to broadband services
- Are from borrowers or former borrowers under title II of the Rural Electrification Act of 1936 (or include such borrowers) – RUS has published latest list on February 4, 2009, on their Web site
- Prove that all project elements will be fully funded, can be completed and can promptly begin following approval
If RUS funds are received, then no NTIA funds will become available (no "double dipping") for the same project or equipment – and vice versa.
To apply for funding from NTIA, an applicant must be a government entity, a non-profit entity (e.g., rural telephone cooperatives may qualify) or any other entity that the NTIA finds by rule to be in the public interest (e.g., members of organizations like NTCA or U.S. Telecom, etc. may qualify automatically). Funding will be provided for:
- Improving broadband access in "unserved/underserved" areas
- Broadband education, awareness, access, equipment
- Support of certain entities/organizations (e.g., schools, libraries, healthcare providers)
- Improving use of broadband access for public safety agencies
- Stimulating broadband demand
You may have noticed many of the words above are in quotation marks, which indicates there are quite a few definitions to be clarified before the agencies can start reviewing applications. Also under discussion is whether or not the same requirements should apply to wireline and wireless broadband deployments or if they should be different. Another fundamental issue is determining the priority in ranking applications to meet the objectives of the programs; clearly, the programs are intended to create jobs – this is what our country needs the most at this time.
The broadband stimulus plan, in particular, is meant to do so by bridging the "digital divide" to ensure that rural areas have the same broadband offerings that urban areas have, where download speeds of up to 50 Mb/s and sometimes even more are already offered. The programs are also intended to increase the competitiveness of our nation in terms of broadband capability, to catch up with nations that have, on average, more than 50 Mb/s available per household, such as Japan or Korea. However, the money is not enough to achieve this for all. It is important to develop a ranking system that clarifies the objectives—connect as many communities as possible, or connect communities with high quality, high performance services.
The application process has not been fully developed and communicated, but the existing RUS loan program may serve as a model. However, the Secretary of Agriculture must submit to Congress a report on planned spending and actual obligations describing the use of the funds within 90 days of enactment (May 18, 2009) – so time is of the essence here.
NTIA plans to consider if the project increases "affordability" of and "subscribership" to services to the greatest population in an area, if it provides the greatest broadband speeds possible to the greatest population in an area, and if it enhances service for health-care delivery, education or children. They will also consider if the applicant is a "socially- and economically-disadvantaged small business" (e.g., Indian tribe or Hawaiian native owned) and ensure that it does not result in "unjust enrichment."
Again, many of the terms are in quotation marks and need further work by the agencies. This is why the agencies were on a road trip until March 24, seeking feedback via public hearings. The agencies received a lot of comments and suggestions to clarify those terms, specifically how broadband should be defined. Another key topic was to streamline the process and award grants as quickly as possible while balancing the need to avoid waste, fraud and abuse. [Note: The full transcripts of these meetings can be found at http://www.ntia.doc.gov/broadbandgrants/meetings.html
Several industry associations such as the FTTH Council or PCIA Wireless have already or are in the process of filing comments. Service providers have the opportunity to influence the plan's rules by contacting the agencies directly with their proposals to clarify the definitions and process requirements. They need to do so quickly; the deadline for comments to the RUS and NTIA is April 13, 2009. For help with contacts or to discuss what the best definitions are, please contact me at econstimulusinfo@corning.com.
Tuesday, March 17, 2009
Happy Birthday to WWW
Article from Total Telecom - http://www.totaltele.com/view.aspx?ID=443942
By Mary Lennighan, Total Telecom
Friday 13 March 2009
We celebrate the 20th anniversary of Tim Berners-Lee's proposal that became the Internet; plus this week's news highlights. "Vague, but exciting." The words used by Mike Sendall, Tim Berners-Lee's boss at CERN, to describe Berners-Lee's proposal for an information management system that evolved into what we now know as the Internet. That proposal was submitted 20 years ago today. 20 years – is that all? For me, the Internet seems to have been around forever. And spending my days as I do, working on the Total Telecom Website, life without the World Wide Web, as Berners-Lee eventually settled on calling it, is impossible to imagine.
Working with systems engineer Robert Cailliau, Berners-Lee developed what was at the time designed to be a single information network to enable physicists at CERN to share the information stored on their individual computers.
The pair came up with the name World Wide Web in May 1990 and set up Info.cern.ch as the world's first Web site. Servers outside of CERN sprang up the following year. In February 1993 the National Center for Supercomputing Applications (NCSA) released the first version of Mosaic, the browser that effectively brought the Internet to the masses.
A quick look at this week's news on the Total Telecom Website shows just how far we have come since then.
On Tuesday Google – arguably the Internet's greatest success story - admitted that its Web-based email service Gmail had suffered another outage, leaving an undisclosed number of users without access for 30 minutes. Some unlucky souls even had to manage without Gmail for 24 hours, although Google assured the world that it was working hard to fix the problem, which was caused by a software bug. Incidentally, there are now more than 113 million Gmail users worldwide, according to data tracking company comScore.
Meanwhile, CERN says the number of Websites in existence has risen to over 80 million.
Internet usage has certainly evolved over the past 20 years, at the same time throwing up legal issues that we could not have imagined at the start.
This week online video-sharing site YouTube, also owned by Google, revealed that it will start blocking access to premium music videos in the U.K., having failed to renew its licensing agreement with U.K. royalty body the Performing Rights Society for Music. ComScore tells us that YouTube is the leading online video site, having registered over 100 million viewers in the U.S. alone in January. Social networking is another phenomenon that noone could have predicted when the Internet was conceived. But now everyone's at it. Video site Hulu this week launched Hulu Friends in a bid to make its site stickier, and with the aim boosting advertising revenue.
And earlier this month Nielsen Online reported that social network is now the fourth most popular online activity, with sites visited by 67% of Internet users.
Online advertising has become big business too.
Earlier this week Google revealed a targeted advertising scheme that will enable it to tie online ads to users' interests. However, unlike the rivals that are further ahead on this road, Google is offering a set of user controls that will enable Web surfers to view and change the interest categories to which they have been assigned. The move was applauded by privacy campaigners.
Moving away from all things Web-based, there was a lot going on elsewhere in the telecoms industry this week, particularly in the mobile space.
On Tuesday a panel of EU lawmakers approved proposals to cap wholesale data roaming charges and SMS roaming rates.
The panel even went further than EU telecoms commissioner Viviane Reding had suggested, by agreeing on a €0.50-per-megabyte cap for wholesale data roaming; Reding had proposed a cap of €1.00.
The new measures will come into force this summer if the full EU parliament votes in favour next month.
There was talk of network consolidation in the U.K. mobile market, with the revelation that Vodafone and O2 are in advanced talks on a network-sharing deal.
While the operators could not confirm that such talks are taking place, they did not deny the rumours.
A deal between Voda and O2 would leave Orange in a strange position. The operator brokered a network-sharing agreement with Vodafone last year, although that deal has amounted to nothing more than sharing cell sites.
However, Orange is said to be keen to tie up with T-Mobile and 3, which have already pooled their network assets through their Mobile Broadband Network Ltd (MBNL) joint venture.
Meanwhile, Vodafone made the news again with the announcement that it will provide users with a DRM-free, device-agnostic music download service.
The operator will start selling DRM-free music in certain European markets and New Zealand this summer, with a wider rollout to follow.
Further afield, India's COAI revealed new statistics this week, reporting that the country reached 277 million GSM subscribers by the end of February. Growth was essentially flat compared with the previous month.
And a report from Chinese firm CCID predicted that China will become the world's largest 3G market by the third quarter of this year, despite its 3G rollout being still in the early stages. China will connect 660,000 3G users by Q3, with China Mobile's TD-SCDMA network accounting for almost half.
In the fixed-line space, cable operator Comcast became the third largest local telephony provider in the U.S. this week when it overtook Qwest in terms of subscribers.
Irish incumbent Eircom informed the government that it is rethinking its plans for a fibre network rollout, citing the difficult economic situation.
And in their latest joint report, Exane BNP Paribas and Arthur D Little warned fixed-line operators that although triple-play offerings have helped to stem line losses in Europe, they should not attempt to compete with pay-TV providers when it comes to premium content.
There was another sign that Nortel Networks will not emerge from bankruptcy as an intact business when reports emerged that the Canadian equipment manufacturer is in talks to sell its wireless equipment and enterprise businesses to rival players.
Turning to jobs, WiMAX operator Clearwire got a new CEO, naming William Morrow as a replacement for Benjamin Wolff.
And Australia's Telstra is believed to have identified a short list of fewer than 10 names for the position of chief executive, following Sol Trujillo's departure in June.
Former Vodafone executive Paul Donovan and BT Retail chief Gavin Patterson are on the list, according to the local press.
Finally, for those of you that are interested in seeing Tim Berners-Lee's original proposal for the Internet, you can find it on CERN's Website.
Mr Berners-Lee, we salute you. Without the Internet, I for one would be out of a job. Or I would be isolated from the world at a standalone PC, receiving press releases by fax and by post. And, horror of horrors, I might actually have to answer my phone sometimes.
And you, the readers of Total Telecom, would have to wait a lot longer to read about the comings and goings in the industry.
It just doesn't bear thinking about.
By Mary Lennighan, Total Telecom
Friday 13 March 2009
We celebrate the 20th anniversary of Tim Berners-Lee's proposal that became the Internet; plus this week's news highlights. "Vague, but exciting." The words used by Mike Sendall, Tim Berners-Lee's boss at CERN, to describe Berners-Lee's proposal for an information management system that evolved into what we now know as the Internet. That proposal was submitted 20 years ago today. 20 years – is that all? For me, the Internet seems to have been around forever. And spending my days as I do, working on the Total Telecom Website, life without the World Wide Web, as Berners-Lee eventually settled on calling it, is impossible to imagine.
Working with systems engineer Robert Cailliau, Berners-Lee developed what was at the time designed to be a single information network to enable physicists at CERN to share the information stored on their individual computers.
The pair came up with the name World Wide Web in May 1990 and set up Info.cern.ch as the world's first Web site. Servers outside of CERN sprang up the following year. In February 1993 the National Center for Supercomputing Applications (NCSA) released the first version of Mosaic, the browser that effectively brought the Internet to the masses.
A quick look at this week's news on the Total Telecom Website shows just how far we have come since then.
On Tuesday Google – arguably the Internet's greatest success story - admitted that its Web-based email service Gmail had suffered another outage, leaving an undisclosed number of users without access for
Meanwhile, CERN says the number of Websites in existence has risen to over 80 million.
Internet usage has certainly evolved over the past 20 years, at the same time throwing up legal issues that we could not have imagined at the start.
This week online video-sharing site YouTube, also owned by Google, revealed that it will start blocking access to premium music videos in the U.K., having failed to renew its licensing agreement with U.K. royalty body the Performing Rights Society for Music. ComScore tells us that YouTube is the leading online video site, having registered over 100 million viewers in the U.S. alone in January. Social networking is another phenomenon that noone could have predicted when the Internet was conceived. But now everyone's at it. Video site Hulu this week launched Hulu Friends in a bid to make its site stickier, and with the aim boosting advertising revenue.
And earlier this month Nielsen Online reported that social network is now the fourth most popular online activity, with sites visited by 67% of Internet users.
Online advertising has become big business too.
Earlier this week Google revealed a targeted advertising scheme that will enable it to tie online ads to users' interests. However, unlike the rivals that are further ahead on this road, Google is offering a set of user controls that will enable Web surfers to view and change the interest categories to which they have been assigned. The move was applauded by privacy campaigners.
Moving away from all things Web-based, there was a lot going on elsewhere in the telecoms industry this week, particularly in the mobile space.
On Tuesday a panel of EU lawmakers approved proposals to cap wholesale data roaming charges and SMS roaming rates.
The panel even went further than EU telecoms commissioner Viviane Reding had suggested, by agreeing on a €0.50-per-megabyte cap for wholesale data roaming; Reding had proposed a cap of €1.00.
The new measures will come into force this summer if the full EU parliament votes in favour next month.
There was talk of network consolidation in the U.K. mobile market, with the revelation that Vodafone and O2 are in advanced talks on a network-sharing deal.
While the operators could not confirm that such talks are taking place, they did not deny the rumours.
A deal between Voda and O2 would leave Orange in a strange position. The operator brokered a network-sharing agreement with Vodafone last year, although that deal has amounted to nothing more than sharing cell sites.
However, Orange is said to be keen to tie up with T-Mobile and 3, which have already pooled their network assets through their Mobile Broadband Network Ltd (MBNL) joint venture.
Meanwhile, Vodafone made the news again with the announcement that it will provide users with a DRM-free, device-agnostic music download service.
The operator will start selling DRM-free music in certain European markets and New Zealand this summer, with a wider rollout to follow.
Further afield, India's COAI revealed new statistics this week, reporting that the country reached 277 million GSM subscribers by the end of February. Growth was essentially flat compared with the previous month.
And a report from Chinese firm CCID predicted that China will become the world's largest 3G market by the third quarter of this year, despite its 3G rollout being still in the early stages. China will connect 660,000 3G users by Q3, with China Mobile's TD-SCDMA network accounting for almost half.
In the fixed-line space, cable operator Comcast became the third largest local telephony provider in the U.S. this week when it overtook Qwest in terms of subscribers.
Irish incumbent Eircom informed the government that it is rethinking its plans for a fibre network rollout, citing the difficult economic situation.
And in their latest joint report, Exane BNP Paribas and Arthur D Little warned fixed-line operators that although triple-play offerings have helped to stem line losses in Europe, they should not attempt to compete with pay-TV providers when it comes to premium content.
There was another sign that Nortel Networks will not emerge from bankruptcy as an intact business when reports emerged that the Canadian equipment manufacturer is in talks to sell its wireless equipment and enterprise businesses to rival players.
Turning to jobs, WiMAX operator Clearwire got a new CEO, naming William Morrow as a replacement for Benjamin Wolff.
And Australia's Telstra is believed to have identified a short list of fewer than 10 names for the position of chief executive, following Sol Trujillo's departure in June.
Former Vodafone executive Paul Donovan and BT Retail chief Gavin Patterson are on the list, according to the local press.
Finally, for those of you that are interested in seeing Tim Berners-Lee's original proposal for the Internet, you can find it on CERN's Website.
Mr Berners-Lee, we salute you. Without the Internet, I for one would be out of a job. Or I would be isolated from the world at a standalone PC, receiving press releases by fax and by post. And, horror of horrors, I might actually have to answer my phone sometimes.
And you, the readers of Total Telecom, would have to wait a lot longer to read about the comings and goings in the industry.
It just doesn't bear thinking about.
Tuesday, February 24, 2009
SIP Signaling
Interesting article from http://www.totaltele.com/view.aspx?C=0&ID=443303
Creating Flexible Next-generation Networks with SIP Signaling
Monday 16 February 2009
Creating Flexible Next-generation Networks with SIP SignalingNext-generation network (NGN) deployments are on the rise. Mobile and fixed line operators are moving to Internet protocol (IP) technology to reduce their transport costs, deliver voice-over-IP (VoIP) services to consumers and enterprise customers, and improve the delivery and management of new multimedia services.
As IP and session initiation protocol (SIP)-based services proliferate, so do the requirements placed on the network to support them. Operators are discovering a downside to their softswitch-based NGNs; they lack the scalability and flexibility to support multimedia services, access independence or network growth.
The Missing LayerIn the push to get their NGN networks up and running, many providers took a short cut. They deployed their VoIP networks as a loose collection of elements interconnected by direct signaling links. Unlike SS7 and Internet protocol multimedia subsystem (IMS), which are hierarchical networks, there’s no signaling and session layer to handle application-layer tasks. From a signaling perspective, each network element must handle all application-layer related tasks. Every possible route must be defined at each network element, creating a spider web of logically connected SIP nodes.
Creating a Session-Control Layer in NGNsCreating a signaling and session framework in the core NGN network avoids the pitfalls created by point-to-point routing. By deploying a SIP signaling router (SSR) - a SIP proxy with enhanced routing capabilities - operators can centralize layer-5 SIP routing in the core network and relieve endpoints of session-management tasks. The resulting architecture creates a flexible framework that enables the following use cases:
Enhanced application server (AS) selection: The tight coupling between endpoints like SIP phones and SIP application servers creates a challenge for many operators. Changes made to the physical network, such as adding a new application server, have a direct impact on the way SIP phones access service. The SSR shields the endpoints by decoupling them from direct knowledge of the changing network. The SIP phones just have to be configured with a single abstract address. Endpoints send requests to the SSR, which resolves the address to the appropriate SIP AS platform and routes the request to that platform.
SIP trunking: Softswitch-based, SIP-trunking solutions, which are built on a “per-connection” cost model, can become costly very quickly. And, since softswitches usually are deployed with the switch vendor’s choice of application server, it’s difficult to gain the economy of a “best-of-breed” solution. By implementing a SSR, operators can use a session-based approach to provide fixed-line services to enterprise customers. The SSR routes on-net calls between IP PBXs and off-net calls through a public switched telephone network (PSTN) gateway to local and long-distance fixed numbers. The resulting architecture creates a volume-based cost structure and reduces costs by allowing operators to select “best-of-breed” application servers.
SIP number portability (NP): For operators with a SIP-trunking infrastructure, performing number portability for VoIP calls can present a particular problem. They can simply “dump” the calls on the PSTN gateway if there’s enough intelligent network capacity and the terminating network is time division multiplexing (TDM). But, if the terminating number is another IP PBX or belongs to a VoIP operator, the call must be shuttled from VoIP to TDM and back to VoIP again. Running pure VoIP calls over TDM wastes gateway capacity and degrades voice quality. Another alternative is to replicate a number portability solution in the SIP domain, but that’s a costly approach. Using the SS7 access feature of the SSR, operators can make TDM-NP available to the SIP network. This capability allows the SSR to augment its routing capabilities with SS7 data. Pure VoIP calls don’t have to be shuttled over the TDM network to perform NP, which maintains voice quality and saves PSTN gateway capacity.
Centralized SIP proxy: Expanding NGN networks requires the addition of new softswitches. Each new piece of equipment must be provisioned with the routing entries for all of the existing softswitches, and existing softswitches must be updated with the routing entries for new equipment. Route management, which is based on pre-defined SIP trunks, becomes increasingly complex as the network expands. Service and subscriber data are tightly coupled with the softswitch, making it difficult to change an existing service or add new applications uniformly. The SSR deployed as a SIP proxy creates a SIP-based reference architecture over the existing network. Calls are routed by default from the softswitch to the SSR. The SSR makes layer-5 SIP routing decisions based on advanced routing algorithms and forwards the request to the appropriate SIP destination.
Specialized SIP proxy: As operators consolidate their networks, many are discovering that softswitches supplied by different vendors are unable to establish sessions. That’s because each vendor uses a different SIP implementation. As long as an operator deploys equipment from a single vendor, there’s no problem. But, when equipment from another vendor is introduced, interoperability problems arise. The issue can be resolved with a customized solution, but that’s an expensive route to take. The SSR creates an architectural solution that is independent of the endpoints and eliminates interoperability problems. Deployed in the signaling layer, the SSR serves as a SIP proxy. It routes SIP traffic between the softswitches and serves as a mediation point between them, “fixing” protocol variations on the fly.
SummaryHaving softswitches and other endpoints perform layer-5 session management may be sufficient for fairly small deployments and simple management tasks. But, as the network expands, the lack of a capable session framework introduces a host of network issues. A suitable session framework offloads signaling and session tasks from the edge next-gen elements to enable efficient network expansion. Just as core routers are used to minimize the routing burden on IP endpoints, layer-5 SIP routing reduces the burden on endpoints by centralizing session management tasks at the network core. The resulting architecture can expand systematically to support VoIP subscriber growth, deliver advanced multimedia services and create the foundation for future technologies and services.
About TekelecFound at the heart of most global networks, Tekelec’s market-leading, mission-critical, high-performance network solutions enable the secure and instant delivery of calls and text messages for more than one billion mobile and fixed-line subscribers. The company’s session management solutions allow telecom operators to manage diverse applications, devices, technologies and protocols, across existing and evolving networks, to meet the demands of today’s consumer. Tekelec uniquely ensures telecom operators have a clear migration path to SIP-based IP networks, and whatever comes next, with the flexibility to deploy solutions at a pace dictated by their business needs. For more information, please visit www.tekelec.com.
Creating Flexible Next-generation Networks with SIP Signaling
Monday 16 February 2009
Creating Flexible Next-generation Networks with SIP SignalingNext-generation network (NGN) deployments are on the rise. Mobile and fixed line operators are moving to Internet protocol (IP) technology to reduce their transport costs, deliver voice-over-IP (VoIP) services to consumers and enterprise customers, and improve the delivery and management of new multimedia services.
As IP and session initiation protocol (SIP)-based services proliferate, so do the requirements placed on the network to support them. Operators are discovering a downside to their softswitch-based NGNs; they lack the scalability and flexibility to support multimedia services, access independence or network growth.
The Missing LayerIn the push to get their NGN networks up and running, many providers took a short cut. They deployed their VoIP networks as a loose collection of elements interconnected by direct signaling links. Unlike SS7 and Internet protocol multimedia subsystem (IMS), which are hierarchical networks, there’s no signaling and session layer to handle application-layer tasks. From a signaling perspective, each network element must handle all application-layer related tasks. Every possible route must be defined at each network element, creating a spider web of logically connected SIP nodes.
Creating a Session-Control Layer in NGNsCreating a signaling and session framework in the core NGN network avoids the pitfalls created by point-to-point routing. By deploying a SIP signaling router (SSR) - a SIP proxy with enhanced routing capabilities - operators can centralize layer-5 SIP routing in the core network and relieve endpoints of session-management tasks. The resulting architecture creates a flexible framework that enables the following use cases:
Enhanced application server (AS) selection: The tight coupling between endpoints like SIP phones and SIP application servers creates a challenge for many operators. Changes made to the physical network, such as adding a new application server, have a direct impact on the way SIP phones access service. The SSR shields the endpoints by decoupling them from direct knowledge of the changing network. The SIP phones just have to be configured with a single abstract address. Endpoints send requests to the SSR, which resolves the address to the appropriate SIP AS platform and routes the request to that platform.
SIP trunking: Softswitch-based, SIP-trunking solutions, which are built on a “per-connection” cost model, can become costly very quickly. And, since softswitches usually are deployed with the switch vendor’s choice of application server, it’s difficult to gain the economy of a “best-of-breed” solution. By implementing a SSR, operators can use a session-based approach to provide fixed-line services to enterprise customers. The SSR routes on-net calls between IP PBXs and off-net calls through a public switched telephone network (PSTN) gateway to local and long-distance fixed numbers. The resulting architecture creates a volume-based cost structure and reduces costs by allowing operators to select “best-of-breed” application servers.
SIP number portability (NP): For operators with a SIP-trunking infrastructure, performing number portability for VoIP calls can present a particular problem. They can simply “dump” the calls on the PSTN gateway if there’s enough intelligent network capacity and the terminating network is time division multiplexing (TDM). But, if the terminating number is another IP PBX or belongs to a VoIP operator, the call must be shuttled from VoIP to TDM and back to VoIP again. Running pure VoIP calls over TDM wastes gateway capacity and degrades voice quality. Another alternative is to replicate a number portability solution in the SIP domain, but that’s a costly approach. Using the SS7 access feature of the SSR, operators can make TDM-NP available to the SIP network. This capability allows the SSR to augment its routing capabilities with SS7 data. Pure VoIP calls don’t have to be shuttled over the TDM network to perform NP, which maintains voice quality and saves PSTN gateway capacity.
Centralized SIP proxy: Expanding NGN networks requires the addition of new softswitches. Each new piece of equipment must be provisioned with the routing entries for all of the existing softswitches, and existing softswitches must be updated with the routing entries for new equipment. Route management, which is based on pre-defined SIP trunks, becomes increasingly complex as the network expands. Service and subscriber data are tightly coupled with the softswitch, making it difficult to change an existing service or add new applications uniformly. The SSR deployed as a SIP proxy creates a SIP-based reference architecture over the existing network. Calls are routed by default from the softswitch to the SSR. The SSR makes layer-5 SIP routing decisions based on advanced routing algorithms and forwards the request to the appropriate SIP destination.
Specialized SIP proxy: As operators consolidate their networks, many are discovering that softswitches supplied by different vendors are unable to establish sessions. That’s because each vendor uses a different SIP implementation. As long as an operator deploys equipment from a single vendor, there’s no problem. But, when equipment from another vendor is introduced, interoperability problems arise. The issue can be resolved with a customized solution, but that’s an expensive route to take. The SSR creates an architectural solution that is independent of the endpoints and eliminates interoperability problems. Deployed in the signaling layer, the SSR serves as a SIP proxy. It routes SIP traffic between the softswitches and serves as a mediation point between them, “fixing” protocol variations on the fly.
SummaryHaving softswitches and other endpoints perform layer-5 session management may be sufficient for fairly small deployments and simple management tasks. But, as the network expands, the lack of a capable session framework introduces a host of network issues. A suitable session framework offloads signaling and session tasks from the edge next-gen elements to enable efficient network expansion. Just as core routers are used to minimize the routing burden on IP endpoints, layer-5 SIP routing reduces the burden on endpoints by centralizing session management tasks at the network core. The resulting architecture can expand systematically to support VoIP subscriber growth, deliver advanced multimedia services and create the foundation for future technologies and services.
About TekelecFound at the heart of most global networks, Tekelec’s market-leading, mission-critical, high-performance network solutions enable the secure and instant delivery of calls and text messages for more than one billion mobile and fixed-line subscribers. The company’s session management solutions allow telecom operators to manage diverse applications, devices, technologies and protocols, across existing and evolving networks, to meet the demands of today’s consumer. Tekelec uniquely ensures telecom operators have a clear migration path to SIP-based IP networks, and whatever comes next, with the flexibility to deploy solutions at a pace dictated by their business needs. For more information, please visit www.tekelec.com.
Thursday, February 05, 2009
Broadband Economic Stimulus Plan
Interesting article from WSJ Blog
By Amy Schatz
Differences between the two broadband stimulus proposals working their way through Congress could take a little while to work out, but details of the plans that have popped up this week offer a map of where things might end up. The House and Senate haven’t agreed on much about the broadband stimulus so far, neither the cost ($6 billion in the House, $9 billion in the Senate) nor Internet speeds (“advanced broadband” in the House clocks in at 45mbps, while the Senate says “next-generation” broadband is 100 mpbs). Cable operators aren’t thrilled about language in the House and Senate bills, which sets aside grant money for broadband providers who can provide 100 mbps service, since that would tend to favor phone companies installing fiber-to-the-home service.
House lawmakers would hand out $6 billion in broadband grants. Half would be given out by the U.S. Department of Agriculture without speed requirements, although 75% of the money has to be used in “rural area(s) without sufficient access to high-speed broadband service.”
A quarter of the grant money handed out by the Commerce Department would be for “basic” broadband service (a.k.a 5 mbps download/1 mbps upload) to “un-served” areas while the rest would go for “advanced” broadband service (a.k.a 45 mbps/15 mbps) in “underserved” areas. Wireless providers would need to offer Internet service with a download speed of at least 3 mbps and upload of 1 mbps.
The House would leave it up to the FCC to decide how to define un-served and underserved areas. Senators want $9 billion in broadband, half of which would be set aside for providing service in rural areas. The Senate Finance Committee tacked on limited tax credits of 10% or 20% to providers offering “current generation” (a.k.a. 5 mbps/1 mbps) service in rural areas and 20% credit for “next generation” (a.k.a. 100 mbps/20mbps) service in rural or low-income areas. The tax credits are relatively small, estimated to cost about $110 million over 10 years.
Open access, or net neutrality, conditions could be a major sticking point for phone and cable companies, which don’t want significant government constraints on their network management practices. Right now, companies are concerned about how “open access” might be defined in the legislation.
In the House, lawmakers say the FCC would be required to define “open access” within 45 days of the legislation’s passage. Senate lawmakers say their grants would be dependent on “interconnection and nondiscrimination requirements,” although they spell out what that means.
The broadband spending would also fall on the long-term side of benefits which may came from the economic stimulus plan.
The Congressional Budget Office said Wednesday that much of the spending on broadband wouldn’t really have much of an impact on consumers for several years. It could take “up to five to seven years” to finish some projects funded by the $2.8 billion handed out by the Agriculture Department’s rural development broadband program.
By Amy Schatz
Differences between the two broadband stimulus proposals working their way through Congress could take a little while to work out, but details of the plans that have popped up this week offer a map of where things might end up. The House and Senate haven’t agreed on much about the broadband stimulus so far, neither the cost ($6 billion in the House, $9 billion in the Senate) nor Internet speeds (“advanced broadband” in the House clocks in at 45mbps, while the Senate says “next-generation” broadband is 100 mpbs). Cable operators aren’t thrilled about language in the House and Senate bills, which sets aside grant money for broadband providers who can provide 100 mbps service, since that would tend to favor phone companies installing fiber-to-the-home service.
House lawmakers would hand out $6 billion in broadband grants. Half would be given out by the U.S. Department of Agriculture without speed requirements, although 75% of the money has to be used in “rural area(s) without sufficient access to high-speed broadband service.”
A quarter of the grant money handed out by the Commerce Department would be for “basic” broadband service (a.k.a 5 mbps download/1 mbps upload) to “un-served” areas while the rest would go for “advanced” broadband service (a.k.a 45 mbps/15 mbps) in “underserved” areas. Wireless providers would need to offer Internet service with a download speed of at least 3 mbps and upload of 1 mbps.
The House would leave it up to the FCC to decide how to define un-served and underserved areas. Senators want $9 billion in broadband, half of which would be set aside for providing service in rural areas. The Senate Finance Committee tacked on limited tax credits of 10% or 20% to providers offering “current generation” (a.k.a. 5 mbps/1 mbps) service in rural areas and 20% credit for “next generation” (a.k.a. 100 mbps/20mbps) service in rural or low-income areas. The tax credits are relatively small, estimated to cost about $110 million over 10 years.
Open access, or net neutrality, conditions could be a major sticking point for phone and cable companies, which don’t want significant government constraints on their network management practices. Right now, companies are concerned about how “open access” might be defined in the legislation.
In the House, lawmakers say the FCC would be required to define “open access” within 45 days of the legislation’s passage. Senate lawmakers say their grants would be dependent on “interconnection and nondiscrimination requirements,” although they spell out what that means.
The broadband spending would also fall on the long-term side of benefits which may came from the economic stimulus plan.
The Congressional Budget Office said Wednesday that much of the spending on broadband wouldn’t really have much of an impact on consumers for several years. It could take “up to five to seven years” to finish some projects funded by the $2.8 billion handed out by the Agriculture Department’s rural development broadband program.
Monday, January 19, 2009
Stimulating the Growth of Fiber Networks Will Immediately Create Maximum Broadband Jobs
Adopting tax incentives for expanding next-generation broadband networks with direct fiber connections would ensure that the economic recovery package now under consideration in Washington, D.C., would create a large number of jobs and extensive economic growth, according to a study released recently by the Fiber-to-the-Home Council.
The study, prepared for the FTTH Council by the economic consulting firm Empiris LLC, found that enactment of tax incentives for the deployment of networks running fiber all the way to premises would generate more than 200,000 direct jobs in each of the next 3 years and increase economic output by more than $100 Billion. A key reason for these substantial job benefits is that labor accounts for almost one-half of the money spent to deploy networks with direct fiber connections. In addition to the direct effects, increased broadband penetration from these proposals would indirectly generate another 360,000 new jobs, according to the report.
The report emphasized that, because broadband providers are experienced infrastructure builders, these and other tax incentives for new next-generation broadband infrastructure would create jobs and spur economic growth almost immediately. "Not only would these proposals create jobs and help boost economic recovery right away, but they will also accelerate expansion of the basic high-tech infrastructure that will drive the U.S. economy throughout the 21st Century," said Jeffrey A. Eisenach, Chairman and Managing Partner at Empiris.
The Empiris study estimates that federal payment of bond interest for next-generation broadband networks, officially referred to as "tax credit bonds", would create 197,437 direct U.S. jobs as a result of private sector deployments, and another 19,744 direct jobs in public sector deployments in each of the next 3 years. Meanwhile, a 100 percent expensing provision for next-generation broadband would produce as many as 32,000 jobs over the same period, while a 50 percent expensing provision for rural/underserved areas would potentially create more than 5,000 jobs.
In rural and underserved areas, the FTTH Council supports tax incentives for broadband deployment at slower speeds to ensure that all Americans have access to broadband and to stimulate broadband deployment and economic activity in areas where they otherwise would not occur.
"In expanding America's broadband infrastructure, it makes sense to encourage the higher-bandwidth networks we will need to compete globally in decades to come," said Joe Savage, President of the FTTH Council. "This study provides evidence that promoting those networks also will give the maximum boost to employment and immediate economic growth."
The FTTH Council recently endorsed broadband incentives proposed by the Communications Workers of America, including provisions similar to those analyzed in the Empiris paper.
A copy of the full report Economic Effects of Tax Incentives for Broadband Infrastructure Deployment can be downloaded from the FTTH Council's website: www.ftthcouncil.org.
Additional information: www.empiris.com
The study, prepared for the FTTH Council by the economic consulting firm Empiris LLC, found that enactment of tax incentives for the deployment of networks running fiber all the way to premises would generate more than 200,000 direct jobs in each of the next 3 years and increase economic output by more than $100 Billion. A key reason for these substantial job benefits is that labor accounts for almost one-half of the money spent to deploy networks with direct fiber connections. In addition to the direct effects, increased broadband penetration from these proposals would indirectly generate another 360,000 new jobs, according to the report.
The report emphasized that, because broadband providers are experienced infrastructure builders, these and other tax incentives for new next-generation broadband infrastructure would create jobs and spur economic growth almost immediately. "Not only would these proposals create jobs and help boost economic recovery right away, but they will also accelerate expansion of the basic high-tech infrastructure that will drive the U.S. economy throughout the 21st Century," said Jeffrey A. Eisenach, Chairman and Managing Partner at Empiris.
The Empiris study estimates that federal payment of bond interest for next-generation broadband networks, officially referred to as "tax credit bonds", would create 197,437 direct U.S. jobs as a result of private sector deployments, and another 19,744 direct jobs in public sector deployments in each of the next 3 years. Meanwhile, a 100 percent expensing provision for next-generation broadband would produce as many as 32,000 jobs over the same period, while a 50 percent expensing provision for rural/underserved areas would potentially create more than 5,000 jobs.
In rural and underserved areas, the FTTH Council supports tax incentives for broadband deployment at slower speeds to ensure that all Americans have access to broadband and to stimulate broadband deployment and economic activity in areas where they otherwise would not occur.
"In expanding America's broadband infrastructure, it makes sense to encourage the higher-bandwidth networks we will need to compete globally in decades to come," said Joe Savage, President of the FTTH Council. "This study provides evidence that promoting those networks also will give the maximum boost to employment and immediate economic growth."
The FTTH Council recently endorsed broadband incentives proposed by the Communications Workers of America, including provisions similar to those analyzed in the Empiris paper.
A copy of the full report Economic Effects of Tax Incentives for Broadband Infrastructure Deployment can be downloaded from the FTTH Council's website: www.ftthcouncil.org.
Additional information: www.empiris.com
Tuesday, January 13, 2009
Convergence Part Deux
We've all heard of convergence in Telecom applications before, but we're looking at a whole new level now. It's just a matter of time until all out Telecom services are delivered ny a high speed broadband ethernet connection. TV, Interent, Telephone and even cell phone applications are all combining in our high speed broadand service. DSL, Cable Interent or FiOS service will be part of the convergence and the applications that go with them will be outstanding.
Tuesday, January 06, 2009
Economic Stimulus Package through Telecom Infrastructure
Found this interesting article. In order to stay copetitive in the global economy we need to continue to build the broadband infrastructure and availability in this country.
Investment in 100 (Mbps) NetworkSource:
www.freepress.net
According to a new new report issued by the Freepress Action Fund, President-elect Obama and congressional leaders have concluded that a massive economic stimulus package focused on infrastructure is the best hope for pulling the U.S. economy out of the current recession. In the past, such stimulus efforts traditionally focused on highways and utilities, and these types of projects certainly belong in the new stimulus package. However, the incoming Obama administration and Congress must look beyond the interstate highways and start investing in the information superhighway. Just as President Eisenhower's economic policies brought Americans a national transportation system in the 1950s, President Obama's can connect Americans to a communications network fast becoming the foundation of the 21st Century economy.
Promoting the deployment of a national, forward-looking broadband infrastructure will provide substantial short-term and long-term economic benefits. This deployment effort will immediately create tens of thousands of new jobs in the telecommunications, manufacturing and high-tech sectors. In turn, a new, world-class broadband infrastructure will spark the creation of millions more jobs in nearly every economic sector connected to technology and communications.
In particular, these policies will provide substantial economic relief to the rural areas of America hit hardest by the current recession. They will also improve our global competitiveness, lifting us from 15th place (or by other measures, 22nd place) among developed nations in broadband adoption. Increased broadband adoption - particularly if targeted to low-income users and households with school-age children - will also substantially increase short-term consumer spending. And it will ensure long-term economic growth by bringing those on the wrong side of the digital divide into the digital economy.
Though the Internet was born here, American consumers are not benefiting from broadband's full potential because our networks are slow and expensive compared to the rest of the world. This is largely because there is no meaningful competition in the American broadband marketplace, and network operators have no incentive to make substantial long-term investments. Broadband stimulus funding should only be used to build world-class networks unlikely to be deployed absent public investment. Freepress Action Fund recommends that stimulus funds be targeted at deploying broadband services capable of delivering actual (not advertised) speeds in excess of 100 Megabits per second (Mbps) in both upstream and downstream directions.
A broadband stimulus package must be carefully targeted and tied to public service principles that ensure that American taxpayers get a strong return on their investment. In this paper, Freepress Action Fund offers a set of proposals to expand the debate about broadband stimulus and provide a foundation for further discussion.
Freepress Action Fund focuses on a set of key public policy priorities:
- Rural America — building out future-proof networks to unserved areas.
- Low-income users — supporting affordable broadband connections, computers and tech training.
- Global competitiveness — upgrading our urban infrastructure to meet world-class standards.
- Education — promoting children's access to technology at school and at home.
- Accountability — ensuring clear standards of quality, affordability and competition, and deduct up to $200 in qualifying Internet access device expenditures.
Broadband Data Improvement Act Funding($300 million over 3 years)
Congress recently passed legislation to promote broadband deployment and adoption by mapping broadband availability through the collection of comprehensive data. However, no money was appropriated to implement the programs established in the bill.
By funding the public/private programs envisioned by this already approved effort, Congress can ensure that broadband stimulus funding is directed to the areas where it is needed most.
Rural Development Community Connect Grant Program ($150 million over 3 years)
Congress should appropriate $50 million per year over three years to this USDA-led program for the explicit purpose of constructing and/or funding community centers (including libraries) that will offer free broadband services and technology training, with an emphasis on training for families with children and senior citizens.
Health Care and Public Service Digital Modernization Program ($150 million over 3 years)
President-elect Obama has expressed the desire to use the stimulus legislation to increase efficiency in our nation's health care system by bringing record-keeping and other health care services into the digital age. There is a similar need to modernize the customer service systems at local and state governmental agencies. Such modernization would vastly improve productivity in the general economy, replacing long lines with easy-to-navigate, Web-based service portals. Congress should establish a program, overseen by the NTIA, that supports modernization at health care facilities and local and state agencies.
Oversight, Accountability and Results
Though the stimulus is needed quickly, and though it is almost certain that legislation will be crafted in haste, Congress must not simply write blank checks to industry. To maximize the effectiveness of scarce taxpayer resources, oversight and accountability measures must be established. If the public is to become a financial partner in our broadband networks, the private owners of those networks must be held to public service standards.
In particular, mechanisms should be established to ensure that any tax incentives or grant monies are used to fund new broadband deployment projects. This requirement will ensure that the stimulus funds are used to create new jobs, not to prop up the stock prices of telecommunications companies.
All of the grant programs and tax policies we recommend must be available to all telecommunications providers, including municipalities, nonprofits, and non-incumbent carriers.
Further, stimulus money must be tied to strict build-out schedules and affordability and capacity requirements. This level of public investment should return a network that is world-class — not simply an incremental improvement over the status quo. The Internet service these subsidies are designed to support also must be an open, freely competitive platform for ideas and commerce.
Investment in 100 (Mbps) NetworkSource:
www.freepress.net
According to a new new report issued by the Freepress Action Fund, President-elect Obama and congressional leaders have concluded that a massive economic stimulus package focused on infrastructure is the best hope for pulling the U.S. economy out of the current recession. In the past, such stimulus efforts traditionally focused on highways and utilities, and these types of projects certainly belong in the new stimulus package. However, the incoming Obama administration and Congress must look beyond the interstate highways and start investing in the information superhighway. Just as President Eisenhower's economic policies brought Americans a national transportation system in the 1950s, President Obama's can connect Americans to a communications network fast becoming the foundation of the 21st Century economy.
Promoting the deployment of a national, forward-looking broadband infrastructure will provide substantial short-term and long-term economic benefits. This deployment effort will immediately create tens of thousands of new jobs in the telecommunications, manufacturing and high-tech sectors. In turn, a new, world-class broadband infrastructure will spark the creation of millions more jobs in nearly every economic sector connected to technology and communications.
In particular, these policies will provide substantial economic relief to the rural areas of America hit hardest by the current recession. They will also improve our global competitiveness, lifting us from 15th place (or by other measures, 22nd place) among developed nations in broadband adoption. Increased broadband adoption - particularly if targeted to low-income users and households with school-age children - will also substantially increase short-term consumer spending. And it will ensure long-term economic growth by bringing those on the wrong side of the digital divide into the digital economy.
Though the Internet was born here, American consumers are not benefiting from broadband's full potential because our networks are slow and expensive compared to the rest of the world. This is largely because there is no meaningful competition in the American broadband marketplace, and network operators have no incentive to make substantial long-term investments. Broadband stimulus funding should only be used to build world-class networks unlikely to be deployed absent public investment. Freepress Action Fund recommends that stimulus funds be targeted at deploying broadband services capable of delivering actual (not advertised) speeds in excess of 100 Megabits per second (Mbps) in both upstream and downstream directions.
A broadband stimulus package must be carefully targeted and tied to public service principles that ensure that American taxpayers get a strong return on their investment. In this paper, Freepress Action Fund offers a set of proposals to expand the debate about broadband stimulus and provide a foundation for further discussion.
Freepress Action Fund focuses on a set of key public policy priorities:
- Rural America — building out future-proof networks to unserved areas.
- Low-income users — supporting affordable broadband connections, computers and tech training.
- Global competitiveness — upgrading our urban infrastructure to meet world-class standards.
- Education — promoting children's access to technology at school and at home.
- Accountability — ensuring clear standards of quality, affordability and competition, and deduct up to $200 in qualifying Internet access device expenditures.
Broadband Data Improvement Act Funding($300 million over 3 years)
Congress recently passed legislation to promote broadband deployment and adoption by mapping broadband availability through the collection of comprehensive data. However, no money was appropriated to implement the programs established in the bill.
By funding the public/private programs envisioned by this already approved effort, Congress can ensure that broadband stimulus funding is directed to the areas where it is needed most.
Rural Development Community Connect Grant Program ($150 million over 3 years)
Congress should appropriate $50 million per year over three years to this USDA-led program for the explicit purpose of constructing and/or funding community centers (including libraries) that will offer free broadband services and technology training, with an emphasis on training for families with children and senior citizens.
Health Care and Public Service Digital Modernization Program ($150 million over 3 years)
President-elect Obama has expressed the desire to use the stimulus legislation to increase efficiency in our nation's health care system by bringing record-keeping and other health care services into the digital age. There is a similar need to modernize the customer service systems at local and state governmental agencies. Such modernization would vastly improve productivity in the general economy, replacing long lines with easy-to-navigate, Web-based service portals. Congress should establish a program, overseen by the NTIA, that supports modernization at health care facilities and local and state agencies.
Oversight, Accountability and Results
Though the stimulus is needed quickly, and though it is almost certain that legislation will be crafted in haste, Congress must not simply write blank checks to industry. To maximize the effectiveness of scarce taxpayer resources, oversight and accountability measures must be established. If the public is to become a financial partner in our broadband networks, the private owners of those networks must be held to public service standards.
In particular, mechanisms should be established to ensure that any tax incentives or grant monies are used to fund new broadband deployment projects. This requirement will ensure that the stimulus funds are used to create new jobs, not to prop up the stock prices of telecommunications companies.
All of the grant programs and tax policies we recommend must be available to all telecommunications providers, including municipalities, nonprofits, and non-incumbent carriers.
Further, stimulus money must be tied to strict build-out schedules and affordability and capacity requirements. This level of public investment should return a network that is world-class — not simply an incremental improvement over the status quo. The Internet service these subsidies are designed to support also must be an open, freely competitive platform for ideas and commerce.
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