Transcript Bob Loube
Broadband ? Bob Loube [email protected] NASUCA 2011 Thanksgiving Loube NASUCA 2011 1 Where has all the money gone? • • • • Net Investment ATT Verizon Qwest 1996 $58.8b $46.7b $14.8b Loube NASUCA 2011 2007 $25.0b $23.7b $8.6b 2 When will they ever learn? • We will build broadband if: • You give us the Yellow Pages Profits – Opportunity New Jersey • Accelerate copper depreciation – BellSouth Florida • Allow the merger to go through – Project Pronto –SBC buys Ameritech • Eliminate UNEs for fiber and advanced networks – TRO • Set terminating rates at approximately zero – the NEW ORDER Loube NASUCA 2011 3 The ARC • Is it a SLC? Is it a PICC? Is it SLC SLC? • Will it be part of the Lifeline Program? • If so, how does it fit into the $4.5 billion budget? • If not, what happens to low-income consumers? Loube NASUCA 2011 4 Distributing the Price Cap Carrier Money • Year One: based on a regression line that no one has reviewed • Year Two: based on a model that no has seen Loube NASUCA 2011 5 The quality of service standard • ATT’s U-verse can provide 6mbps downstream and 1.5 mbps upstream • Verizon’s FiOS can be provide service at very high speeds – I have 25mpbs in both direction • DSL can provide 6mbps downstream and 768 kbps upstream • Rumor has it that the order will require 4mbps downstream and 1 mbps upstream Loube NASUCA 2011 6 The quality of service standard and the model • The model will build fiber to the home. • What happens if model investment is $1000 per line and investment to meet the required service quality is $50 per line – a new miniDSLM • The difference is profit to the carrier • The difference limits the total number of customers that can be supported given a budget constraint. Loube NASUCA 2011 7 Wireless v. Wireline • • • • Should we support two separate networks? Should we push for an integrated network? -fiber to the premise -micro cells that minimize the need for spectrum • Should state funds provide support to pilot projects that promote an integrated network? Loube NASUCA 2011 8 What to do about the Intercarrier Compensation Regime? • See you court? • Enlarge all local calling areas to be equal to the wireless MTA areas in each state • Set transit and tandem rates to zero if one of the parties to the call is a customer of the carrier that owns the tandem • Set transit and tandem rates to $0.0007 per minute if the call is between customers of carriers that do not own the tandem • Investigate wholesale long distance service Loube NASUCA 2011 9 Wireless MTA MAP Loube NASUCA 2011 10 Moving to an IP network • • • • Wyoming Century Link: 0 of 41 offices have IP switches Rural Carriers: 12 of 53 offices have IP switches When the FCC encouraged the move to 1-plus dialing it allowed carriers to increase access charges to recover unamortized balances in the old technology • Suggestion: retain LSS if the carrier purchases an IP switch • Loube NASUCA 2011 11 Other ways to encourage broadband build-out • Finance municipal ownership of fiber infrastructure • Reduce the SLC by 50 cents per year for each year a reasonable standard is not met • Reduce the local rate by 50 cents per year for each year a reasonable standard is not met Loube NASUCA 2011 12