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[IP] BROADBAND DEPLOYMENT IN RESIDENTIAL NEIGHBORHOODS





Begin forwarded message:

From: Dewayne Hendricks <dewayne@xxxxxxxxxxxxx>
Date: October 15, 2004 11:40:41 AM EDT
To: Dewayne-Net Technology List <dewayne-net@xxxxxxxxxxxxx>
Subject: [Dewayne-Net] BROADBAND DEPLOYMENT IN RESIDENTIAL NEIGHBORHOODS
Reply-To: dewayne@xxxxxxxxxxxxx

[Note: Here's a capsule summary of the FCC's broadband decision yesterday with pointers to the various comments on the FCC website for those of you who are interested in the details. DLH]

BROADBAND DEPLOYMENT IN RESIDENTIAL NEIGHBORHOODS

The FCC relieved incumbents telecos from unbundling requirements for fiber-to-the-curb (FTTC) loops, where fiber is extended within 500 feet of a customer's premises. The FCC found that FTTC networks can deliver many of the same benefits as FTTC loops. FTTC networks offer enhanced capability for providing advanced services, including the ability to offer voice, multi-channel video, and high-speed data services. The new rules free companies to choose between fiber-to-the-home (FTTH) or FTTC networks based on marketplace characteristics, rather than disparate regulatory treatment. The FCC also clarified that incumbent telecos are not obligated to build time division multiplexing (TDM) capability into new packet-based networks or into existing packet-based networks that never had TDM capability.

[SOURCE: FCC]
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A1.doc

STATEMENTS FROM COMMISSIONERS --
* Powell (Majority):
Deep fiber networks offer consumers a "triple play" of voice, video and data services and an alternative to cable. By limiting the unbundling obligations of incumbents when they roll out deep fiber networks to residential consumers, we restore the marketplace incentives of carriers to invest in new networks. There is, however, an important limiting principle in this item: our rules demand that carriers deploy fiber deep into neighborhoods - within 500 feet of a customers' home. Our policy is designed to remove regulatory barriers to these risky investments; but we will remain watchful of requests that would back the Commission up from the broadband future. Consumers deserve information at the speed of light and by taking action today, we move one step closer to that result.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A2.doc
Abernathy: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A3.doc Martin: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A5.doc
* Copps (Dissenting):
Though today's Order speaks in glowing terms about broadband relief, the reality is far less radiant. I don't believe competitive telecommunications have been faring very well under our watch and this particular proceeding strikes me as yet another in a series of prescriptions this Commission is willing to write to end competitive access to last mile facilities. It seems every month brings a new onslaught. Here is why I think this approach is dangerous. The loop represents the prized last mile of communications. Putting it beyond the reach of competitors can only entrench incumbents who already hold sway. Monopoly control of the last mile created all kinds of problems for basic telephone service in the last century, and now we seem bent on replicating that sad story for advanced services in the digital age. Unfortunately, the digital age is going to take a lot longer to get here because of the blows we are inflicting on competition. If we aren't going to listen to consumers, one would think this Commission would at least listen to the investors who wrote us again last week that our broadband policies are undermining competition, undermining facilities-based carriers who need last-mile access to service small business customers, and undermining the confidence of investors who want to put money into this kind of competition-in fact who have already done so! It doesn't take a compass to see what direction this is heading. With fewer and fewer loops available to competitors, more and more control will be wrestled away from consumers and placed with the entrenched owner of the last mile facility. By shutting off the last mile to competitors, the Commission is not ushering in a new era of broadband. It is returning to the failed and non-competitive policies of the past. Residential consumers, small businesses, edge providers of VoIP and others who rely on competitive broadband will be stuck with the consequences, and the consequences will be with us for a long time and will, I predict, kick us further down that broadband penetration ladder where your country and mine now ranks Number 11.
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A4.doc
Adelstein (Dissenting in part): http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-253127A6.doc

REACTIONS
* Association for Local Telecommunications Services
“The Bell companies -- with the support of the FCC -- are quickly recapturing their monopoly over local loops. Thanks to the FCC’s action today, the Bells can now deny competitive carriers access to local loop facilities that contain any fiber ­ including part fiber/part copper loops that were deployed decades ago. In a complete reversal of broadband policies announced just last year, the FCC has now immunized the Bell companies from competition for residential and small business customers over existing loops ­ even though the FCC concluded that such remonopolization of loop plant would disincent further investment in new fiber deployment. Today’s action undermines facilities-based competition and threatens the availability of competitive services to businesses. Even access to core DS1 network elements -- supported by a unanimous FCC in the last competition proceeding -- is being curtailed in response to Bell company requests. The FCC needs to stop saying one thing and doing another. The nation’s small businesses need the Administration and the FCC to stand firmly in support of loop unbundling.”
* Consumers Union and Consumer Federation of America
"The FCC today took our country one giant step closer toward solidifying a two-company domination -- the local cable and telephone providers -- over the consumer Internet market,” said Gene Kimmelman, Senior Policy Director for Consumers Union. “As both industries tighten their hold on high-speed Internet (broadband) access, consumers will see their choices diminish and their bills skyrocket.” “This stranglehold will stifle innovation as these duopolies discriminate against unaffiliated applications and services that in the past have driven the growth of the Internet and the boom in information technology,” Mark Cooper, Director of Research at the Consumer Federation of America, said. “As a result, our country will fall even farther behind Asia and Europe in broadband penetration.” http://www.consumersunion.org/pub/core_telecom_and_utilities/ 001443.html#more

SEE ALSO --
Reuters: http://www.reuters.com/newsArticle.jhtml; jsessionid=HIK3ZIV30ABA0CRBAEZSFEY?type=technologyNews&storyID=6506341

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