Attention broadband planners: Although broadband deployment strategies differ around the world, a new report decisively concludes there is only one network technology proven to meet the demands of broadband users both today and tomorrow: a national fiber optic network.

BuddeComm’s new report, “Global Broadband – Fibre is the Infrastructure Required for the Future,” looked at every technology from variations of DSL, cable broadband, satellite, and wireless and found only fiber optics capable of handling the capacity of data and applications that will be required to run cities and countries from today onwards.

The report found that fiber optic deployment faced a range of challenges, despite its obvious technological advantages. Political obstacles are among the biggest roadblocks facing fiber networks. A combination of concerns about the cost of wiring service to procrastination has held back many national broadband improvement projects, including those in Australia and New Zealand. Incumbent commercial providers in North America have also actively attempted to block public fiber networks to protect their own commercial interests.

The report concludes that decisive political leadership is essential to overcome many of the artificial obstacles which slow down or stop fiber broadband deployments.

“One can argue endlessly about what technologies should be applied and at what cost, but we believe that all signs point to Fiber-to-the-Home (FTTH) networks as the best future-proof solution,” the report concludes. “One can debate about whether it is needed in five, ten or fifteen years – and again that depends on some of the differences between countries – but in the end FTTH is the best final solution for all urban and many regional premises.”

The 21st century digital economy is powered by robust broadband, and growing demands for faster speeds are coming from the healthcare, energy, media and retail sectors. Healthcare uses include file transfers of high-definition medical imagery and teleconferencing. Smart Grid technology is being deployed by many power companies to develop more efficient means of distributing and conserving energy. Media and mass entertainment providers are moving to high bandwidth online video, and the retail economy markets products and services over modern broadband networks.

The implications for the global economy are enormous. More than 120 countries have formal broadband policies and many consider high-speed Internet access a national priority. In the last century, North America and western Europe were considered the dominant economic players, in part because they established and maintained infrastructure to support their manufacturing and service economies. But many of these countries are falling far behind in the 21st century digital economy, where countries like Japan and Korea, parts of eastern Europe, the Baltic States, and Scandinavia are taking the lead in infrastructure deployment.

“Broadband infrastructure is perceived by all to be critical for the development of the digital economy, healthcare, education, e-government and so on,” the report notes. “From a financial and investment point of view broadband infrastructure should be treated as utility infrastructure.”

The interests of the private sector are not always aligned with the public interest, particularly when it comes to spending capital on upgrading network infrastructure. The report recommends that governments step in and build a public fiber highway system on which all providers can offer services.

“A National Broadband Network (NBN) should be based upon an open network as this makes it possible to offer the basic infrastructure on a utility basis to content and service providers,” the report concludes.

The governments of Australia, New Zealand, Israel, and others are already moving in that direction, setting up broadband authorities to build fiber infrastructure dismissed as too expensive or unnecessary by commercial providers who answer first to financial markets, shareholders, and private banks.

Under most NBN plans, providers get access to the fiber network at wholesale rates and help recoup its cost.

Where politicians answer to the whims of the private sector before considering the public good, the report finds:

• Private cable companies, particularly in North America, will continue to support and incrementally upgrade their HFC networks, but new cable operators are more likely to deploy fiber at the outset, not coaxial copper cable. Network costs, efficiencies, and reliability are all in fiber’s favor. In Europe, cable broadband is regularly losing market share to faster fiber technology. The share of all broadband subscribers held by HFC networks across Europe fell from 26% in 2002 to about 11% by mid-2013;
• Private telephone companies that do not face robust competition will continue to rely on their existing DSL networks. In cities and larger towns, expect phone companies to eventually upgrade to VDSL fiber-to-the-neighborhood (and its variants) in the largest markets with the most competition. Rural areas will continue to receive less robust DSL service, particularly where no cable competitor provides service;
• Rural areas may receive fixed wireless or satellite broadband service, but this is not a solution for more populated areas.

Although the global economic downturn stalled many fiber network deployments and suppressed demand, the report finds broadband usage and demand for faster speeds are quickly accelerating. Some other highlights:

• Asia continues to be the leader in fiber optic deployment;
• Sufficient customer demand to make the investment in fiber worthwhile is increasingly likely once fiber service becomes widely available in countries like the Netherlands, China, France, Israel, Switzerland, Norway and Sweden;
• International connectivity in Africa remains a challenge, but fiber bandwidth is expected to more than double by 2014;
• The Middle East will see rapid growth in fiber broadband once international capacity constraints are eased.

Obtaining a copy of the full BuddeComm report is prohibitively expensive for consumers, priced at $995.

Last week, Verizon’s Tom Maguire responded to some of our earlier coverage about Verizon’s decision to abandon landline service on portions of Fire Island devastated by last fall’s Hurricane Sandy. We have received several complaints from readers about our decision to grant space to Verizon to present their views without reciprocation. While we understand those concerns, Stop the Cap! believes readers deserve both sides of a discussion that AT&T and Verizon will soon seek to have with customers across many of their rural service areas. For that reason, we invited Verizon’s participation. This is our response:

Raise your hand if you want Verizon’s Voice Link to replace your traditional telephone service and lose your only wired broadband connection.

Almost no one has. Despite the arguments from Verizon Communications and AT&T that wireless is the answer to troublesome copper wiring and maintaining rural telephone service, dozens of Fire Island, N.Y. customers have been sufficiently provoked to file comments with state regulators, making it clear they want no part of the loss of their landline and its accompanying, affordable broadband service. In more than 135 public comments with the Public Service Commission at press time, Stop the Cap! could only find one comment from a Fire Island resident who had no issues with Verizon’s wireless landline replacement. He was upset Verizon had not wired a nearby yacht club for broadband service.

Both AT&T and Verizon have publicly advocated that rural customers would be better served moving from traditional wired landline service to their respective wireless 4G LTE networks. AT&T characterizes it as “an upgrade” that switches customers to an “all IP” 21st century network. Verizon has been less bold in its public policy statements, framing its position mostly in economic terms  — does it make sense to invest large sums to upgrade or repair damaged infrastructure that serves a relatively small number of customers?

Until recently, customers have been free to make the choice between a landline and wireless service themselves. Now, the residents of Fire Island and some barrier islands off the coast of New Jersey have a very different choice: They can accept Verizon’s Voice Link landline replacement, sign up for cell service that has proved troublesome in both areas, or give up phone service altogether. Verizon has made it clear it is not prepared to replace the destroyed infrastructure on portions of the islands, it will not invest in major upkeep and repairs to network facilities that may have been compromised but are still functioning for now, and will likely never offer its fiber FiOS network in the affected areas.

Stop the Cap! has expressed repeated concern that the decision to abandon wired infrastructure in favor of wireless is based primarily on profit motives, is short-sighted, and represents a downgrade in the quality of an important, regulated utility service, particularly in rural and out-of-the-way places that have few, if any alternatives. Fire Island is shaping up to argue our case, based on the testimony of those actually living and working on the island.

Customers Don’t Want the ‘Solution’ Verizon is Offering

Voice Link is not proving a welcome permanent resident on Fire Island for many customers.

The reasons are clear: inadequate wireless service is common on the island, Voice Link does not perform or sound as good as the landline it replaces, and Verizon’s wireless broadband alternative will cost many residents their unlimited-use DSL service in favor of a wireless capped option that could cost more than $100 a month.

Verizon’s strongest argument is that landline service has fallen out of favor in the United States, with customers increasingly disconnecting home phones in favor of cell phones. If Verizon’s statistics are correct, 80 percent of the voice traffic on the island is already handled by Verizon Wireless. (Verizon does not specify if that traffic comes from permanent residents or temporary visitors, a point of contention with residents.)

Maguire was very careful to limit Verizon’s advocacy of Voice Link in terms of its capacity to handle voice calls. That is because Voice Link is currently incompatible with a whole range of important services that have worked fine with traditional landlines for years.

Maguire’s words are important: “Verizon’s commitment is to provide our customers with voice service,” — the kind you had in the late 70s. Voice Link fails faxing, home medical monitoring, home alarm systems, dial-up service, credit card transactions, and home satellite equipment that connects to the telephone network.

Voice Link is no upgrade for Fire Island. It represents turning back the clock, especially for broadband customers.

Maguire claimed in his editorial the company was only considering Voice Link for the universe of customers where the copper network was not supporting their requirements, with the exception of Sandy-impacted Fire Island and some New Jersey barrier islands. But that does not tell the whole story. In a filing with the New York State Public Service Commission, Verizon makes it clear it intends to introduce the same solution in other parts of New York:

It also seeks to deploy Voice Link in other parts of the State, both as an optional service in areas where the company also offers tariffed wireline local exchange service, and (subject to the Commission’s approval) as a sole service offering in particular locations and circumstances.

While Verizon has sought to appease regulators by volunteering to offer an equal level of service for the same or less money, there are questions about whether a regulator has any oversight authority over Voice Link.

“It is a remarkable concept in utility regulation that a regulated utility may determine that costs are unreasonable and as a result choose to provide alternative, and potentially unregulated service to affected customers,” said Louis Barash of Ocean Beach. “Verizon proposes to permit the PSC to regulate that activity, but it is not clear that the Commission has such authority. And it certainly isn’t clear that the Commission would have any authority to reverse its decision, or otherwise to sanction the company, if Verizon failed to comply with its undertakings.”

Broadband & Competition Matters: Forcing Customers Off Unlimited DSL in Favor of Near-Exclusive, Usage-Capped, Verizon Wireless Broadband

Offering broadband is a vital part of any telephone company’s strategy to add and keep customers. Yet Verizon’s DSL customers on the western half of Fire Island will have their broadband service canceled unless wired service (copper or fiber) is available. Verizon’s only alternative is a usage-capped, prohibitively expensive Verizon Wireless mobile data plan that may or may not perform well on the signal-challenged island. There is literally nowhere else for customers to go.

Verizon’s own statistics confirm none of its wireless competitors handle significant traffic on and off the island.

Maguire: “A multimillion dollar investment with no guarantee that residents of the island will even subscribe to our services makes no economic sense. In fact, that’s probably why Verizon is the sole provider on the island. None of the companies we compete with in other parts of New York offer services on the island.”

Maguire’s evidence:

“The company discovered that 80 percent of the voice traffic was already wireless.  If other wireless providers were factored in, it is likely that the percentage is closer to 90 percent.”

That means Verizon’s wireless competitors collectively have a traffic share of less than 10%.

Verizon’s Plan & Public Safety

Residents advise visitors they better have Verizon Wireless and a robust phone that works well in challenging reception areas if they expect to use it while on the island. AT&T, Sprint, and T-Mobile customers are often out of luck. That poses an immediate and direct threat to public safety, according to public safety officials.

“The cellphone service on Fire Island progressively gets worse every year as more and more people are bringing smartphones out there,” explained Dominic Bertucci, chief of the Kismet Fire Department. “There are some days where you can barely get a signal.”

The Brookhaven Town Fire Chiefs Council, which represents the leadership of 39 fire departments and fire companies in the region is vehemently opposed to Voice Link and considers it a safety menace, especially during frequent summer power outages when the island’s population is at its peak.

“Without a copper wire phone service, a service that still functions even during a power failure, how can we insure that the residents can call for help?” asks president John Cronin. “How will they call for the lifesaving services that are provided by the fire and EMS units of Fire Island? The corporate desire for greater profit cannot be made at the expense of the safety of the residents of Fire Island.”

“Wireless service is not reliable,” adds Fair Harbor resident Meredith Davis. “Imagine being in an emergency and having ‘spotty’ reception which happens out there all the time on cell phones. That is not safe and not okay.”

“If you are unfamiliar with Fire Island, there is very little medical service and the only way off the island is a scheduled ferry service or, for some people who have permits and trucks, a very long drive,” explains lifelong Fire Island resident Nora Olsen. “When someone needs to be rushed to the hospital, they are evacuated by helicopter, which makes timely emergency calls of the essence to save lives. So you can imagine how important it is to have reliable phone service. It should be up to the individual to decide if they want to switch to a wireless service. They should not be forced into it by Verizon. The people who are most likely to want to stick with the phone service they have been used to all their life — senior citizens — are the most likely to need to use the phone to call for help.”

A number of residents also claim Verizon has overblown the real extent of damage on the island and is not operating in good faith.

“In the larger communities of Ocean Beach and Seaview, I have met no one yet that has their connectivity lost,” said resident Karen Warren. “So for Verizon to assert that the infrastructure is largely destroyed and to repair it would be an enormous expense is simply not true. To add insult to injury, before coming out and finding out that our lines were in fact intact, Verizon offered to ‘replace’ our existing DSL data service with LTE Jetpak wireless broadband. The performance and reliability with only a single device connected was horrendous.”

“[Verizon is] pushing us toward a higher-cost and lower-value solution,” Warren concluded.

Getting specific information about the current state of Verizon’s network on Fire Island and repair/replacement costs are hard to come by. Verizon filed an application with the PSC declaring much of the information confidential or a trade secret, refusing to share it with the public. The company was concerned some might access the Public Service Commission website, find the case number about Fire Island, navigate to the specific Verizon filing containing information about their infrastructure… and then vandalize it.

Barash suspects Verizon might be hiding something, especially considering the company requested to bypass usual waiting periods and public notification requirements:

Verizon asserts that it would cost “$4.8 million for a voice-only digital loop carrier system comparable to the networking serving the eastern part of the island.” It is by no means clear, however, that such a system is the minimum required to restore/repair the western part of the system to the service it had pre-storm. Certainly Verizon’s application makes no representation to that effect. This estimate apparently contemplates an entire new system for the western portion of Fire Island, notwithstanding that a meaningful percentage of the copper wire system is still operational.

Moreover, Verizon’s position on the required scope of repairs has been a constantly shifting target. Verizon apparently advised Commission Staff, and Staff repeated at the April 18 Commission Hearing, that the western Fire Island telephone system was “damaged beyond repair by the storm.” Verizon apparently has abandoned that claim; this application indeed is premised on the assumption that the system can be repaired. Furthermore, in its first (May 3) submission to the Commission, Verizon stated that “five of the six cables that run between Fire Island and the mainland – the five that serve the western portion of the Island – were also badly damaged by the storm.” Just a week later, it has abandoned that claim as well, and instead in its amended Certification asserts “Five of the six cables that run throughout Fire Island were badly damaged by the storm.” It is hard to accept at face value Verizon’s estimated repair costs when even at this late date it does not seem to have a handle on exactly the damage that needs repair.

A full Hearing, with notice to affected customers, is necessary to develop facts sufficient to make such determinations and to be reasonably certain the Commission is acting based on reasonably verifiable facts.

Residents deserve a full voice and full disclosure in discussions that will directly impact their vital telecommunications services for years to come. Verizon’s corporate officials will not have to live with the results. Neither will the staff at the PSC.

Stop the Cap! has chosen to directly participate in the New York State Public Service Commission regulatory process and has filed two formal comments thus far. The first outlines Verizon’s greater strategy to abandon landline service in rural areas outlined by Verizon CEO Lowell McAdam in 2012. We also provided the Commission the prices Verizon Wireless intends to charge Verizon DSL customers switching to wireless broadband service. The second objects to Verizon’s excessive request for secrecy and exposes cell coverage issues on Fire Island.

AT&T U-verse broadband has not kept up with the times, limiting speed-craving customers to a comparatively slow 18-24Mbps that hasn’t changed much in a few years. But an AT&T employee claims in the company forums that is all about to change, with new broadband speeds up to 48-60Mbps downstream and up to 10Mbps upstream on the way.

The improvements will not just mean faster Internet speeds, but also better television service. U-verse is an IP-based network using a DSL variant to deliver a broadband pipe into customer homes. That pipe is divided up between television, broadband, and phone service. Previously, U-verse limited television viewing to a handful of concurrent television streams — a problem in large households with heavy TV and DVR usage. The network upgrade won’t eliminate that problem, but it will make it more rare with up to six channels viewed simultaneously.

AT&T customers will also eventually benefit from a switch to “cloud storage” DVR equipment, which will record and store TV shows remotely and stream them back to your television on-demand. This will allow AT&T to sell customers different levels of storage capacity and reduce customer inconvenience should they lose all of their recordings if a hard drive happens to fail.

The employee predicts the speed increases will begin rolling out in July, beginning in Texas.

Not all markets or customers will be able to get the fastest speeds offered by AT&T because U-verse is still dependent on copper wire between a customer’s home or business and the nearest fiber optic link. AT&T intends to boost speeds for some customers using pair bonding to eke more performance from their aging wiring. Customers already buying U-verse’s top 24Mbps tier will receive a free upgrade to 30Mbps when the new speeds are introduced.

Some leaked pricing for the new speeds (discounts may apply in bundled packages):

• 3/1Mbps — $41
• 12/1.5Mbps — $51
• 18/1.5Mbps — $56
• 30/3Mbps — $66
• 45/6Mbps — $86
• 60/6Mbps — $106
• 75/10Mbps — $121

No word on if AT&T plans adjust its barely enforced U-verse usage cap (250GB).

Recently, Stop the Cap! published stories about Verizon’s decision to discontinue traditional wired landline service for approximately 500 customers on Fire Island and offer them a wireless alternative called Voice Link. This is an important change for Verizon and our customers, and we wanted to clarify several points about the service and how Verizon is deploying it.

In places like Fire Island, New York and some communities along the Jersey Shore, such as Mantoloking and Seaside Heights, Verizon evaluated the extent of the damage to its facilities – which in many cases were literally washed away by Super Storm Sandy – and conducted extensive research before deciding the best course of action to take in terms of restoration.

Fire Island is a popular beach community with only a few hundred year-round residents, but the population swells each summer. Verizon’s equipment on the eastern side of the island was not too heavily impacted, so repairs were made and services restored.

On the western side of the Island, however, a large percentage of Verizon’s copper facilities were damaged beyond repair.

We studied the voice traffic on and off the island and where it was originating from on both Verizon’s wireline and wireless networks.  The company discovered that 80 percent of the voice traffic was already wireless.  If other wireless providers were factored in, it is likely that the percentage is closer to 90 percent.  This made it clear that people had already made the decision as to what technology works best. They had abandoned copper long before Sandy.

Another part of Verizon’s analysis looked at the number of permanent residents on Fire Island, which number about 500, and the costs that Verizon would incur to install and connect new landline facilities there.  It would range from $4.8 million to more than $6 million. A multimillion dollar investment with no guarantee that residents of the island will even subscribe to our services makes no economic sense. In fact, that’s probably why Verizon is the sole provider on the island. None of the companies we compete with in other parts of New York offer services on the island.

Verizon’s commitment is to provide our customers with voice service, and Voice Link is another way that Verizon is using technology to reliably deliver on that commitment for customers. And Voice Link does so by using wireless technology that has been proven effective over the last 20 plus years.

Verizon will maintain the copper network where it makes customer service and business sense to do so.  Please keep in mind that the vast majority of our copper customers have no issues at all with their service; we are only considering the universe of customers where the copper network is not supporting their requirements.  Again, the exception is the storm-impacted areas in the western portion of Fire Island and a few New Jersey Barrier communities where copper facilities were damaged beyond repair.  In these locations Voice Link will be the single voice option available to customers. Verizon will offer these customers the opportunity to use our state-of-the-art, tried and tested wireless network at the same rate (or better) that they pay today.

Some additional points for clarification:

• The service does offer a variety of popular calling features including Call Waiting and Caller ID with Name.  Some articles mistakenly reported to the contrary;
• Another article cited a Communications Daily piece that incorrectly reported 40,000 people participated in a blind test of Voice Link. Actually, that test group consisted of 20 people;
• Current Voice Link models include a rechargeable battery that offers 36 hours of standby and two hours of voice service. Future devices will work with standard AA batteries, giving customers an easy alternative for replacing batteries and maintaining communications in an extended power outage;
• Although the device is not presently data capable, the team is working to change that. Nevertheless we have always said that it was not Verizon’s original intent to use Voice Link for customers with DSL. If a customer had an issue with their copper and they had DSL, we would repair the copper.  Unfortunately Sandy changed these plans for a handful of customers on Fire Island and the New Jersey Barrier where the copper is beyond repair.

What’s the Deal With Copper?

In areas where Verizon’s fiber and copper network ran side-by-side, Verizon began to ask certain copper customers with a history of trouble to move their service to fiber. In some cases the equipment supporting the copper service was so outdated that we could not even find replacement parts because the equipment had been discontinued. The objective was to improve service quality and customer satisfaction using the best communications network, and the result was clear: the program has been very successful. More than 300,000 customers migrated to Verizon’s fiber-optic network.  These customers enjoy super-reliable, faster fiber at the same rates they were paying all along.

In non-fiber areas, Verizon developed Voice Link to take advantage of wireless technology to address voice customers served on the copper network who have had chronic repairs issues.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/Verizon Voice Link Keeps Customers Connected After Hurricane Sandy 5-31-13.flv[/flv]

After Sandy hit, Verizon realized that wireless technology also would be an ideal solution for customers in areas the storm destroyed or severely damaged. It has helped us reconnect hundreds of people and businesses. Don’t take our word for it. See what these customers have to say. (3 minutes)

Tom Maguire is Verizon’s senior vice president of network operations support.

West Virginia has spent nearly three times more than it anticipated for each mile of fiber optics being laid by Frontier Communications as part of the state’s taxpayer-funded broadband expansion project, according to a new report.

The Saturday Gazette-Mail reports that state officials originally planned to spend $17,000 for each mile of fiber cable laid to community institutions including schools and libraries. Instead, it is paying $47,500 per fiber mile, more than double the industry average of $20,000.

Frontier Communications is getting at least $45 million in taxpayer dollars towards construction costs and will end up owning the completed fiber network that won’t directly deliver broadband service to a single home or business in the state.

West Virginia will make use of a 675-mile institutional fiber network when the project is finished, 25 percent smaller than the 900-mile network originally proposed.

State officials including Homeland Security director Jimmy Gianato have come up with some novel defenses for the cost overruns, blaming:

• The 2011 Japanese earthquake/tsunami that allegedly spiked fiber prices to as much as $50,000 per mile;
• Superstorm Sandy which delayed the project and caused $14 million in damage;
• The cost of environmental impact studies.

The state is in a hurry to spend down the remaining funds left over from the $126.3 million taxpayer grant before they expire September 30. The broadband project has been mired in controversy from almost the beginning, including allegations that major telecom company employees serving as consultants steered project managers to invest in expensive, oversized routers intended to serve college campuses that ended up installed in tiny community libraries.

State officials also found many of the institutions slated to receive fiber upgrades already had fiber service. That left officials scrambling to find any schools, libraries, hospitals — even prisons where taxpayer-funded fiber broadband would prove useful.

In the end, Frontier will be the biggest beneficiary of the project and state officials predict $4-8 million will remain in unspent funds when the project is complete.

“If people step back, they can see this monstrosity in all its true glory,” says Jan Huntser. “Private companies like Frontier don’t want taxpayer money building public fiber networks for homes and businesses because that represents unfair competition. Instead, Frontier pockets taxpayer money to build a private fiber network they will end up owning that taxpayers cannot access. Instead, we’ll keep using their slow DSL service.”

Huntser says if taxpayer money is spent to build fiber networks, taxpayers ought to be able to use them.

“None of this makes any sense,” Huntser adds. “Frontier tells friends to buy a satellite dish for broadband because they will never offer it while a library in that town has four terminals and enough broadband equipment to support a business with hundreds of employees. They can’t even understand how to make it work, so they still rely on their DSL service to run the Wi-Fi connection instead.”