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.

The Wall Street Journal’s not-living-in-the-real-world editorial page strikes again.

The commentary pages have always been the weakest part of the Journal, primarily because they screech pro-corporate talking points in contrast to the more balanced reporting in the rest of the newspaper.

Mr. Holman W. Jenkins, Jr. decided to distort broadband reality (again) in yesterday’s edition with a glowing commentary on how wonderful broadband providers are in his piece, “Springtime for Broadband.” The only thing missing was a border in fine print labeled, “Sponsored by Verizon, AT&T, and your cable company.”

While your Internet bill is being hiked at the same time your provider is slapping usage limits on your connection, Jenkins dismisses consumer-fueled complaints about broadband price gouging, assaulting Net Neutrality, and overall poor customer service as part of Washington’s “broadband policy circus.”

Charges fly hourly that Google or some other company is guilty of gross insult to net neutrality (that sacred principle nobody can define). Oregon Sen. Ron Wyden has introduced legislation to regulate data caps and Internet pricing. Law professor Susan Crawford, until recently a White House technology adviser, clearly craves to be America’s next go-to talking head on broadband. Lately she’s been everywhere calling for a crackdown on the competing “monopolists” who supply Internet access.

How dare they complain, decries Jenkins in a robust defense of the 21st century version of the railway robber barons.

Comfortably playing patty cake with provider-fed talking points from the industry echo chamber, Jenkins is ready for battle, facts or not.

But wireless providers have invested big money to deploy high-speed mobile networks, and fixed and mobile are inevitably beginning to compete. The latest evidence: Australia recently predicted that up to 30% of households will go the all-wireless route and won’t be customers for its vaunted national broadband project.

Not exactly. The basis for this 30% figure is the National Broadband Network’s own business plan, which warns –if– the company raised prices to a maximum theoretical level, up to 30 percent of its customers would rely on wireless instead… by the year 2039. That is 26 years from now. You have nothing better to do in the meantime, right?

In fact, conservative critics of the fiber network, some defending the big wireless cell phone industry in Australia, have suggested fiber optics is a big waste of money because “wireless is the future.”

That old chestnut again.

“Now you can present a bulletin without touching a typewriter … it’s just there on the computer system, you don’t need a reel to reel tape recorder. I’ve got a touchscreen in front of me. Back then I had a big cartridge deck,” said Ray Hadley on 2GB radio. “Can you imagine the advances in technology in the next 26 years? I can’t. I can’t comprehend it. By the time they finish the NBN, it could be superseded by something we don’t even know about.”

NBN Myths, a website set up to tackle the disinformation campaign from political and industry opponents has one simple fact to convey: “Despite what you may have read from certain clueless commentators, there is not a single country or telecommunications company anywhere in the world that is attempting to replace fixed networks with wireless in urban areas, or even planning to do so in the future.”

Even Telstra, the biggest telecom company in Australia scoffs at such a notion, noting a growing number of its customers have both wired and wireless service, and they do not depend on one over the other.

Research firm Telsyte found that 85 per cent of Australians want speeds of 50Mbps or higher, speeds impossible for wireless to offer. In fact, when the NBN fiber network became available to Australians, almost half the current users as of October last year had chosen an even-faster 100Mbps plan option. But Australians also want mobile broadband, and they are signing up for that as well.

The Australian Bureau of Statistics notes the number of mobile broadband Internet connections also grew by around 40% in Australia between 2009 and 2010. But here is the Achilles heel of wireless: it cannot deliver the same speeds or capacity, and providers charge high prices and deliver low usage caps. As a result, the wireless industry has pulled off a coup: they earn enormous revenues from networks they have successfully rationed. The total amount of data downloaded over Australia’s wireless networks actually fell on a per user basis, despite the growth in customers.

Much of Jenkins’ commentary is spoon-fed by the industry-funded Information Technology and Innovation Foundation, which produces industry-sponsored studies designed to tell America all is well in our broadband duopoly.

In the latest federal survey, the average broadband speed in America is up to 15.6 megabits per second, from 14.3 a year earlier. Nearly half of customers who six months ago made do with one megabit or less have now moved up to higher speeds. Since 2009, the U.S. has gone from 22nd fastest Internet to the eighth fastest.

The 15.6Mbps figure comes from the Federal Communications Commission. The statistics about our global speed ranking come from Akamai’s voluntary speed test program. Other studies rate America much lower. More importantly, while providers in the U.S. try to squeeze out more performance from their copper networks, other countries are laying speedier fiber networks that are destined to once again leapfrog over the United States. Most charge less for their broadband connections as well.

Jenkins also quotes the ITIF which touts 20 million miles of fiber were laid in America last year. But the ITIF, when pressed, will admit the majority of that fiber was “middle mile” connections, institutional or business network fiber you cannot access, or fiber to cell towers. Fiber to the home expansion has stalled, primarily because Verizon has suspended expansion of its FiOS network to new areas after Wall Street loudly complained about the cost.

Jenkins argues that if we leave providers alone and stop criticizing their growing prices, declining competition, and fat profits, the marketplace will suddenly decide to invest in network upgrades yet again.

“The day may come when even Verizon, which visibly soured on its $23 billion FiOS bet, rediscovers an urge to invest in fixed broadband infrastructure to meet growing consumer lust for hi-def services,” writes Jenkins.

Would Wall Street rather see providers invest in network upgrades or return profits to shareholders? Investment expansion in the broadband industry comes when a company senses if they do not spend the money, their business will be swept away by others that will. Cable broadband threatens telephone company DSL, so AT&T cherry-picked communities for investment in its half-measure U-verse fiber to the neighborhood network. Google Fiber, should it choose to expand, will be an even bigger threat to both cable and phone companies. Municipal fiber to the home networks upset the incumbent players so much, they spend millions of ratepayer dollars in efforts to legislate them out of existence.

Jenkins’ view that giving the industry carte blanche to do and charge as it pleases to stimulate a better broadband future is as fanciful as NBN critics in Australia suggesting fiber upgrades should be canceled in favor of waiting 20+ years for improved wireless to come along.

He even approves of Internet Overcharging schemes like usage caps and consumption billing, calling it proper price discrimination in a “fiercely competitive” environment to defray a network’s fixed costs.

Do you think there is fierce competition for your broadband dollar?

Broadband’s fixed costs are so low and predictable, it literally calls out consumption pricing as just the latest overreach for enhanced profits. As Suddenlink’s CEO himself admitted, the era of big expensive cable upgrades are over. Incremental upgrades are cheap, the costs to offer broadband are declining, so it is time to reap the profits.

Jenkins closes with one recommendation we can agree with: “A low-tech way to stir up broadband competition would be to relax the regulatory obstacles to the actual physical provision of broadband.”

We can start by scrapping all the state laws the industry lobbied to enact that prohibit community-owned broadband competition. If big cable and phone companies won’t provide communities with the quality of broadband service they need to compete for 21st century jobs, let those communities do it themselves.

While Australian officials promote the noble aspects of its new fiber-based National Broadband Network to power commerce, health care, and education, one content and applications developer says the prospect of improved “adult entertainment” options will drive demand for fiber broadband adoption in Australia, just as it has in many other countries.

Jennifer Wilson, project director for The Project Factory, took discussions about the decidedly-adult topic of online content private to be certain it did not overshadow the more virtuous-aspects of the fiber network.

“The single most important factor is the porn factor because pornography has always been at the cutting edge of technology,” Wilson said. “If we cannot get porn on the NBN than we will have trouble getting consumer acceptance and uptake.”

Australia is just starting a debate about the appropriateness of adult entertainment on a publicly-owned network — a debate familiar to community broadband providers who face scrutiny over adult video content often found on municipally-owned cable systems.

Access to adult content and keeping it away from children is now evolving into a secondary debate about the NBN, and some politicians are considering placing adult content controls on the network.

For Wilson, that would be a major mistake.

Speaking at an Australian Computer Society (ACS) forum in Sydney, Wilson said giving parents the tools to control viewing options was perfectly appropriate, but a national policy banning pornography on the NBN would be a disaster.  Wilson believes adult content has always “stimulated” digital growth, and even, in her view, forced a final decision on which high definition DVD format would become the primary standard — Blu-Ray or HD.

“The main reason Blu-Ray took off was because the adult entertainment industry chose the format over HD,” Wilson said. “No one is going to install the NBN on the basis that one day they might need e-health services but they will use that as a justification for getting the service in order to download movies and watch TV.”

Australian technology evangelists of all kinds favor an agnostic approach to content, keeping government out of the viewing rooms of individual NBN subscribers.  Some have gone as far to say adult content will represent an enormous revenue opportunity — one that will help pay off the expense of constructing the network.

That moral dilemma — porn accelerating profit for the NBN, has politicians in a quandary over whether that represents government promotion of adult content for financial reasons.

“Which is exactly why the government needs to stay as far away from this debate as possible,” Jeffrey Maindonald, a Unitarian Universalist tells Stop the Cap! “Give people the tools to make personal decisions for themselves and their families, but stay out of the content and leave that to the authorities when it crosses the legal line.”

Maindonald, a retired minister, accepts adult content has driven everything from home video recording, film cameras, the Internet, and now the possibilities of what can be done with fiber broadband.  For him, it’s an extension of the inevitable debate between “good” and “evil” mankind deals with everywhere else.  Enforcing self-defined moral laws online is a highly subjective business, Maindonald says, one that will simply lead to endless debate and clashes.

“Thankfully, the new network has virtues that extend far beyond a virtual red light district,” Maindonald says, hoping the debate won’t derail the country’s fiber broadband future.

“A colleague of mine, an Anglican archdeacon, told me he was amazed that the most modern technology was being used to still obsess over God’s miracle of the human body,” Maindonald adds. “It won’t stop with the NBN.”

While North American ISP’s call 3Mbps DSL “revolutionary” for rural America and dream of Internet Overcharging schemes like usage caps and consumption billing everywhere else, Australia is poised to take broadband to a level North America can only imagine.  Watch this documentary on Australia’s fiber-based National Broadband Network future and how it will transform their economy and culture, and then ponder what your Internet Service Provider is doing these days.

While we scratch our heads wondering how to wire West Virginia for slow speed DSL, Australia is planning to rip out copper wire networks everywhere.  While we fight over communities trying to get their citizens 21st century broadband speeds from community-owned providers private companies want to ban, Australia will deliver the same fiber speeds to 90 percent of the country, whether it’s ‘economically viable’ (to investors) or not.  As we watch a handful of giant telecom companies try to mess with broadband pricing to further increase their profits without delivering any improvements in service, Australia is going to rid itself of artificial limits on broadband usage.

But Australia’s NBN goes much farther than just delivering fast broadband.  It builds a foundation to transform virtually every aspect of Australian life:

• Rural Australia’s economic viability is guaranteed a future with the availability of fast and reliable broadband for businesses large and small;
• Telemedicine means patients seeking routine care and follow-ups can conduct them from the comfort of their own homes;
• Telecommuting means less energy consumption, less traffic, and reduced costs in roadway maintenance as workers do their jobs away from the office without wasting precious time in traffic;
• Telelearning provides rural students with access to the same high quality education city students receive, and ongoing education can be managed anytime, anywhere, even for those with existing jobs and families;
• Australian businesses can reach new customers across the world, increasing sales, whether they sell a digital product or one that leverages online shipping and tracking tools to complete delivery anywhere;
• Millions of Australians will have access to the same high speed broadband, delivering a platform for the development of large-scale, next generation applications that don’t make sense in countries where broadband is a patchwork of speeds, service, and basic availability.
• It means a broadband network so far advanced above that found across North America, it could change Australia’s standing in global commerce, and impact our own.

Embarrassed yet?  Worried about America and Canada becoming broadband followers instead of leaders?

You should be.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Australia’s NBN June 2011.flv[/flv]

Australia’s National Broadband Network  (38 minutes)

Australia’s march towards an all-fiber future took an important step last week when the government announced a wide-ranging agreement with Telstra, the country’s largest phone company, to use Telstra’s existing infrastructure to help construct a national fiber network.

After two years of negotiations, Australian Prime Minister Julia Gillard on Thursday announced an $11 billion deal between Telstra and NBN Co to allow NBN to use Telstra’s existing conduits, poles, and network facilities to provide a foundation for the construction of the all-fiber network and the removal of existing copper wiring.

The deal is expected to save the government millions by not having to construct redundant facilities.

The network is expected to take a decade to complete, and will provide optical fiber broadband to at least nine out of ten Australian households.  The project will make Australia a global broadband leader, far ahead of the United States and Canada and most of western Europe.

As part of the deal, Telstra agreed to pay $2 billion for upgrades to its own infrastructure in preparation of migrating customers to the NBN.  Telstra’s CEO, David Thodey, said the agreement ended the uncertainty surrounding Telstra’s possible association with NBN and will allow his company to focus on customer service.

Gillard and Communications Minister Stephen Conroy turned on Australia’s first connection to the NBN in May at the Presbyterian Ladies College in Armidale in the east Australian state of New South Wales.

The town is one of five test markets where the NBN will first operate.  Areas in Melbourne, Townsville, coastal New South Wales and South Australia will also be switched on in coming months.

[flv width=”512″ height=”308″]http://www.phillipdampier.com/video/Nine Network NBN Switched On 5-11.flv[/flv]

Nine Network in Australia covered the opening of the country’s National Broadband Network in Armidale earlier this year, and what it means for Australians as fiber broadband replaces older technology.  The opposition gripes the government is spending too much on the network.  (7 minutes)

Liberal opposition to the NBN has been fierce in some quarters, with Opposition communications spokesman Malcolm Turnbull claiming the government is overspending on a network that delivers fiber straight to the home.  Gillard accused the conservative opposition of seeking to rip installed fiber straight out of the ground if they were to come to power, a charge Turnbull rejects as ridiculous.

 

He prefers a “fiber to the neighborhood” approach, similar to AT&T U-verse, which he says will bring good enough speeds to Australians faster and cheaper than an entirely fiber based network would.  But fiber proponents claim the costs will come down as the network construction ramps up, delivering economy of scale.  The government also believes fiber to the home is more upgradable and more reliable than a hybrid fiber-copper network.

Most of all, Australians are celebrating the imminent end of usage-based pricing, fair access policies that reduce speeds of heavy users to near-dial-up, and the fact they are likely to be among the top-five ranked broadband nations globally when the network is complete.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Sky News ABC NBN and Telstra Achieve Deal 6-23-11.flv[/flv]

Sky News and ABC report on the government’s deal with Telstra to retire the nation’s copper wire network and work together to build fiber to the home to virtually every Australian. (7 minutes)