Debate on 700MHz Spectrum Heats Up

A new startup has managed to stir the pot on the 700MHz auction by proposing to build and maintain a national network for both public and commercial interests. Frontline Wireless wants to take the 24MHz of spectrum reserved for police, fire and other emergency use and make it available to everyone while giving emergency workers priority use. Frontline's proposal sounds very similar to Google's push to make the band into a vendor neutral wholesale network that any device could connect to with Frontline simply maintaining it.

Naturally, Frontline's proposal came under immediate fire in the Senate hearing and big telco is already aligning itself to oppose anything but a "winner take all" auction of this valuable wireless spectrum, public interest be damned. Personally, I believe the idea to have a company be no more than a network maintainer is probably a good idea, similar to how there is a gatekeeper for domain name registrations. A vendor-neutral wireless network would encourage us to standardize our various wireless devices and free up a lot of other bandwidth, notably the 800MHz, 900MHz, 1800MHz and 1900MHz ranges used by cell phones. It could also enable the use of a "cellular Carterphone" regulation that requires interoperable handsets between cellular carriers. The question is if the telcos will let this UTOPIA-style model come to pass or not.

(See full articles here, here, here, here, and here.)

Sprint Re-Thinking WiMax While DirecTV and EchoSTAR Jump Right In

It's a bad time to be Sprint. The wireless carrier has been taking a beating on the stock market over the indigestion caused from swallowing Nextel, possibly threatening its deployment of WiMax networks. Despite predictions calling for WiMax to be more popular than WiFi by 2010 (are you listening, Philadelphia?), Sprint max consider partnering more closely with Clearwire, a major WiMax deployment.

Satellite providers have already beat Sprint to the punch. Both DirecTV and EchoSTAR (purveyors of DISH Network) are tapping Clearwire to beef up their broadband offerings. I'd imagine it's because they want to free up spectrum for more HD channels (not to mention the latency on their satellite-based Internet service is near unbearable). With how rapidly wireless networks are evolving, it seems that municipalities on board the SS WiFi are wishing they had life jackets about now.

(See full articles here, here and here.)

Inexpensive Options Could Bring More Wireless Players

Look for your cable operator to think about getting into the WiFi market. A company called Tollgrade Communications is hawking a wireless access point that taps directly into the cable operator's fiber backbone, allowing them to turn each of their neighborhood nodes into a wireless transmitter. This could allow cable operators to offer wireless roaming for current subscribers in addition to expanding their reach into the traditional wireless market using existing infrastructure. What remains to be seen is if any cable operators will take the bait and give it a shot.

In a related story, a company called Meraki is offering a cheap wireless repeater powered by solar. The outdoor device runs about $100 and has an option for a solar panel with a battery to maintain power at all times without being on the grid. The range of several hundred feet is respectable and can be boosted up to 10-12km with after-market antennae. This would bring the cost of a grid-connected WiFi mesh to under $10K per square mile, something I imagine most cities looking into WiFi would be grateful for. Could this be what makes WiFi a contender? We'll see.

(See full articles here and here.)

Comcast Promises 800 Channels of HDTV They Can't Deliver

In a marketing ploy best suited to a used car salesman, Comcast announced they would be offering over 800 channels of HD content by 2009. Of course, it's very easy to get that many channels when you count pay-per-view channels in an endless loop as a single channel. It also ignored Comcast's immense bandwidth constraints. Carrying 800 HD streams will consume 64Gbps of bandwidth even though a piece of coax can only carry a paltry 4Gbps. Their solution is to do what AT&T does and push the content to the node, streaming content on an as-needed basis to the consumer.

The big problem, however, is when too many people are watching at the same time. With hundred of subscribers per node and about 1Gbps reserved for data, voice and overhead, Comcast can realistically offer under 40 separate streams of uncompressed HD at a time. This means that Comcast will continue doing their infamous over-compression of television signals and offer HD that really isn't HD. Their HFC network is doomed to collapse under the strain of their over-zealous demands.

(See full article here.)

US Plummets to 24th in Worldwide Broadband Penetration

In another sure sign of our national infrastructure being poorly handled and neglected by the incumbents and their failed promises of '96, the US is now ranked 24th in terms of broadband availability, surpassed by pretty much every nation in Western Europe as well as South Korea, Japan, Macau and Hong Kong. If current trends follow, we're likely to get further and further behind old Soviet bloc countries like Lithuania and Romania.

Unsurprisingly, most of this can be traced back to how the telcos squandered the loot from the '96 Telcom Act. Instead of investing in fiber options, they chose to pump the money into long-distance, wireless and DSL ventures to get higher profit margins. Rural areas have been hit hardest since they were supposed to see this universal fiber built-out as well.

(See full articles here and here.)

No Love for Small Towns Seeking Broadband

There's about 2,000 towns with fewer than 60,000 residents that can't find companies to build city-wide WiFi networks. Despite many of them having issued RPFs, top-tier providers are set on chasing the big contracts in Boston, Chicago and Philadelphia rather than Smallville, Kansas. Most of the cities are seeking these networks because existing cable and telephone operators simply will not roll out high-speed services; Brigham City joined UTOPIA for that reason. (Ironically, both Comcast and Qwest started offering high-speed options after that announcement.) With the new digital divide becoming a case of urban versus rural, this lack of interest is a disturbing trend, especially since the feds offer grants for rural broadband.

(See full articles here and here.)

Verizon Accused of Ignoring Copper Infrastructure to Focus on FIOS

Some of Verizon's union workers are accusing the telco giant of letting its older copper lines rot while it builds fiber optics elsewhere. The accusers have alleged that training and repair equipment have been almost exclusively focused in areas where FIOS is being built out. Based on Verizon's history in Virginia, where the complaints emanate from, it seems that lengthy repairs of old copper lines aren't unusual for the company.

As happy as I am that Verizon is building FIOS (better late than never), doing so while letting the poor and rural copper customers get second-rate service just can't fly.

(See full articles here and here.)

Is "A la carte" Cable Coming Soon?

A new bill in the House, introduced as a way to force the offering of "family-friendly" content, also includes provisions for being able to cancel one channel at a time to save the cost of distribution. The bill would require such a new tier of content to not show any TV-MA or TV-14 content between the hours of 6AM and 10PM for all expanded basic channels. The bill could also restrict when "obscene" content could be shown.

Even with the emphasis on a la carte, only about 53% of consumers would be interested and their pricing expectations are steep. Many would want to pay just $24/mo for 26 channels compared to twice as much for 100 channels with most packages. The proposed bill would allow customers to only save the costs of distributing a channel when canceling it, something I would imagine cable and satellite companies don't want floating out in the wild.

It gets pretty complex once you consider how cable operators pay for channels. ABC, for instance, usually offers a discount for carrying the local affiliate in exchange for carrying some of the Disney stations that aren't nearly as popular. Given deals like that, cable operators might actually be in a hard spot between consumer demand and content producer's demands.

(See full articles here and here.)

Net Neutrality Still Under Assault

In a move that surprised pretty much nobody, AT&T's CEO, Ed Whitacre, took a few more potshots at Net Neutrality in a speech that used alarming candor. Referring to getting anti-neutrality legislation passed, he said it's not 'cashing in', it's 'deregulation'. It seems that his replacement is taking a similar tack, wanting to double-dip content providers and destroy the "inter" part of Internet.

Time Warner hasn't wasted a lot of time on scrapping Net Neutrality before legislation goes through. They're recently implemented packet shaping to slow down certain kinds of traffic. Tops on their list are data-intensive applications like BitTorrent and Joost. Essentially, Time Warner is selling high-speed connections with the promise that you get fast downloads… right up until the point you actually want to use it. That smells like lawsuit in the air with a hint of false advertising.

Even cell phones aren't safe. Despite AT&T just about getting its head chewed off for blocking certain numbers in Iowa, T-Mobile has started blocking calls to numbers from a competing provider in the UK. So far, the block seems to only extend to users in the UK, but it'll be a matter of time before they start trying to pull the same stunt in the US. 

Maine, however, isn't content to sit this one out. In response to the assaults on Net Neutrality, they've passed a resolution demanding that more be done to ensure that all data is treated equal. Given Maine's history as a maverick state, this is none too surprising.

(See full articles here, here, here, here, and here.)

Salt Lake City Lacks Broadband Vision

Salt Lake City is home to major fiber optic cables, a renowned university… and a city government that has no idea what to do to get better broadband. Three years after rejecting UTOPIA membership, candidates to succeed Rocky Anderson as mayor can't say what exactly they'll do about increasing speeds or lowering prices. It seems that Ralph Becker is the only one to speak up and support reconsidering UTOPIA, though it comes in the form of a "put it to the voters" cop-out, a fancy way of saying "I don't want to personally commit to it before I get some poll numbers." Even then, the council has already shown that it favors bringing in private competitors, neglecting that building a universal network to rival Comcast or Qwest requires a deep-pockets company like Verizon or AT&T. Is that really progress?

(See full article here.)