Broadband: Wireless and Fiber
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1 Broadband: Wireless and Fiber Milda K. Hedblom, J.D., Ph.D. Dain International Services, Consultant Director, TISP Forum, HHH Institute of Public Affairs, U. of MN
2 Why Are We Talking About BB? Broadband is essential Are current offerings sufficient? If not, what should entities consider?
3 Why Is This Happening Now? US is 13 th or 16 th in worldwide bandwidth access Cities and regions see common goals Regulations made fiber and wireless easier Costs to deploy have come down Technology options are up Economic competition is relentless
4 Broadband Technology Wireless-the long and the short of it: Wi-Fi---(IEEE802.11b) shorter distances over unlicensed spectrum WiMAX---(IEEE802.16a) longer distances over licensed spectrum
5 Broadband Technology Fiber to the Home (FTTH or FTTP) Big Broadband (Symmetrical 100 Megs to Gigabit) Superior today to every other technology for long term investment & economic growth over the foreseeable future * More costly than wireless networks
6 What Speeds? What Price? What Problems? WiFi: As a network 1-3 megs, $15.00 plus Reliability Modest entry price Penetration/Terrain issues add costs Unlicensed spectrum
7 What Speeds? What Price? What Problems? WiMax: Theoretical 30 to 70 megs over 50 KM; likely actual shared 4-12 megs over 2 km urban, 10 km clear line of sight $$ Similar to DSL and Cable Modem Selective deployment; mesh ^ $$ to deploy Licensed spectrum
8 What Speeds? What Price? What Problems? Fiber: 5-30 or Verizon, asymmetric; 100 megs municipal or open platform, symmetric $$ Similar to DSL & Cable Modem with Verizon; 5 to 15% lower with others Selective deployment by commercial providers; all premises by municipal providers Fiber Optic network installation long term investment--how to pay for it?
9 Barriers to Entry: Federal Pending Legislation (2007 Introduction) Lautenberg-Smith S preserve ability of local governments to provide broadband capability, among other purposes (Community Broadband Act of 2007) Boucher-Upton H.R preserve ability of local governments to provide broadband capability, among other purposes (Community Broadband Act of 2007)
10 Barriers to Entry State Arkansas Colorado Florida Missouri Minnesota Nebraska Nevada Pennsylvania South Caroline Tennessee Texas Utah Virginia Washington Wisconsin
11 Service Entry Requirements Voice Services Entry: Right to enter or right to provide service beyond municipality Other state regulations: certifications, basic services, interconnection, emergency services
12 Service Entry Requirements Video Service Entry: Franchise: State? Local? Fees? Level Playing Field vs. no build out requirements Access to video content for start ups Ability to meet the cost of overbuilding Is IP delivery a video service?
13 Service Entry Requirements Internet & special data services No special requirements to enter
14 ANALYSIS OF COMMUNITY OPTIONS GOALS AND BENEFITS RISKS OPTIONS FOR NETWORKS
15 GOALS AND BENEFITS COMMUNITY NEEDS ECONOMIC DEVELOPMENT AFFORDABLE SERVICES QUALITY OF LIFE EDUCATION/HEALTH SERVICES HOME BUSINESS/HOME SCHOOLING MUNICIPAL SERVICES-SAVINGS AND ENHANCEMENTS ENHANCE HOME OWNER VALUE
16 RISKS JUDGEMENT ON NEEDS AND BENEFITS ECONOMIC INVESTMENT AND RETURN COMMUNITY CULTURE ABOUT PUBLIC SERVICES INCUMBENT OPPOSITION TECHNOLOGY CHANGE CHANGE IN LAW
17 OPTIONS FOR NEW NETWORKS City builds network, provides services. City assumes capital costs City assumes financial risk of making a business.
18 OPTIONS FOR NEW NETWORKS City builds, owns and maintains network. Relies on others for service delivery such as lease, open platform. City assumes capital costs. Relies on others to make a financial return to the city.
19 CITY RELIES ON MARKET City cheerleads new networks/shares resources. City relies on current providers for network improvements & new networks. City assumes little financial risk.
20 REGIONAL COOPERATION Cities and Counties Joint Cooperation * to share fiber planning * to develop joint service plans * to pool capital and risk * to increase fiber backbone options * Minnesota Regional Broadband Task Force
21 THE RISING CURVE At the low end of rising demand curve for bandwidth use What should people pay for bandwidth? What benefits should communities (cities, counties, states) seek? What risks should they assume given their goals?
22 NEXT STEPS? THESE ARE UP TO YOU LET ME KNOW IF I CAN HELP
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