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Journal Kadin2048's Journal: Telcos, Customers, Voters: Taking sides on IPTV and FTTN. 1

ArsTechnica recently posted an interesting article discussing the experiences of several Chicago suburbs experiencing the first waves of telco-delivered next-gen broadband (FTTN) deployments.

On one hand, traditional telecommunications carriers like AT&T want to use their existing right-of-way agreements and "last mile" copper wiring to offer 20Mb data service, which would include the magic trifecta of voice, data, and video, to residential customers' homes. But facing them is a range of challenges, including the homeowners themselves, with local municipal governments in tow; that's in addition to the resistance you'd expect from existing cable TV franchises. Customers dislike the large fiber/copper interface boxes that must be deposited around neighborhoods in order to provide the service, and are worried that telcos will use their status as "data services" to avoid traditional franchise agreements that require whole-town build-outs, similar to what cable companies had to do in the 1980s.

The result is what you'd expect: lawsuits. The municipal governments are stuck between the proverbial rock and a hard place: if they allow the telcos to go ahead with their (generally undisclosed, trade-secret) plans, they'll be sued by the cablecos for not keeping the playing field level; if they block the telcos, they'll be sued for not allowing "network upgrades." Since there are currently no court rulings or Federal laws to act as guides, it's anyone's guess as to which way it will turn out.

As someone who just wants a fast, cheap data pipe, it's a difficult issue to take sides on. It's obvious that the U.S. regulatory and competitive climate is poisonous, as evidenced by the lack of broadband options here, compared to other countries with similar population densities. What's not obvious is whether letting the telcos deploy according to their own schedules is best, or whether municipal governments should be allowed to force them to build-out, deploying service to areas that may not be as immediately profitable. The telcos are quick to threaten that the latter will cause the deployment of the services to be aborted entirely, while others have speculated that including low-income areas in next-generation deployments might help to keep prices down later, benefiting everyone.

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Telcos, Customers, Voters: Taking sides on IPTV and FTTN.

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  • If telcos don't come up with something to compete against the cablecos, they'll be marginalized out of existence. Upgrading the copper network to fiber is something they *HAVE* to do to stay viable in 10 years. The cable companies had the benefit of 80 years of technological advancement to make this happen, and the telcos have gotten a mostly free ride on the 100 yo AT&T monopoloy.

    Time to call bullshit. Either deploy, or leave the market for Comcast/RCN/Cox/Charter to dominate.

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