January 12, 2009 11:20 AM

We Shouldn't Base Broadband Subsidies on Speed

By Geoff Daily
App-Rising.com

January 12, 2009 11:20 AM

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A common theme I've been hearing on the Hill is that broadband subsidies 
should be based on speed requirements rather than technologies. The idea 
is that Congress shouldn't be picking technology winners but instead 
setting minimum levels of access and letting the market decide which 
technologies to use to get there.

While I can see how politically this provides a lot of cover, in terms 
of what's the best policy for America, I think going down this road is a 
mistake.

My first argument against this is how are you going to determine who's 
actually delivering what they promise? Are we going to allow broadband 
providers to qualify for support who advertise high speeds but don't 
actually deliver them?

Already at today's broadband speeds this is a major problem. I rarely 
get the 10Mbps Comcast has sold me, especially when lots of people in my 
apartment building are online. And even with some cable companies moving 
to DOCSIS 3.0, which enables them to sell 50Mbps packages, these speeds 
are far from guaranteed.

Even worse is that I've heard from many people that the network 
management practices of broadband providers are trending towards ever 
higher over-subscription rates, meaning more and more customers sharing 
smaller pipes onto the Internet despite being promised higher advertised 
speeds.

So if we're going to subsidize based on speed we need to have a clear 
and strong set of regulatory guidelines that are enforced on an ongoing 
basis about what advertised speeds actually mean in terms of the actual 
throughput realized by consumers. But this can get very messy very 
quickly, and it will undoubtedly require a lot of administrative overhead.

Alongside these issues is how do we make sure these top-end speeds are 
offered at affordable prices? What good is mandating 50/10 networks if 
that service costs $500 a month to subscribe to? And yet even if 
broadband providers want to offer these speeds at lower prices they 
often can't due to the prohibitively high cost of backhaul access. So 
how are we going to resolve this issue?

Another problem with mandating the speeds broadband providers must offer 
is what if no one wants to buy those speeds in a given market? Why is 
government making decisions that are better left up to the marketplace 
to decide? While ultimately I think everyone's going to want the biggest 
pipe they can get, the market isn't there yet. So unless a 50/10 service 
can be offered for the same or less than a 5/1 service is today, there 
aren't going to be that many consumers signing up for it.

What's arguably more important than Internet speeds is that any 
last-mile broadband access infrastructure being put in place has the 
in-network capacity to scale indefinitely to meet demand and that that 
in-network capacity is open to all applications developers to deliver 
high bandwidth applications. Access to the Internet should only be one 
consideration in terms of the kinds of broadband networks we're supporting.

Additionally, how can we not mandate symmetrical speeds? The biggest 
bottleneck in broadband networks is the upstream capacity. Why? Because 
broadband providers didn't see the Internet as a two-way medium. Yet 
there are as many reasons for users to be sending as receiving data, so 
if we're trying to spur the deployment of next-generation broadband it 
would be irresponsible to not guarantee that consumers will be able to 
contribute as much as they consume.

And we also need to realize that whatever speeds we mandate today will 
be too slow tomorrow. So we need infrastructure to be put in place that 
can quickly and easily scale to meet whatever demand for bandwidth 
materializes in the future. We can't assume that just because 
infrastructure can deliver 50/10 today that it'll be able to turn up the 
spigot in the future. The only technology that works for is fiber. With 
fiber you just swap out the electronics at either end and you can scale 
up indefinitely. With everything else you're going to have to go back 
and lay new fiber lines.

But we shouldn't be putting ourselves in a position where we're going to 
have to rip up roads every 5 years to keep up with the growing demand 
for bandwidth. If we just put in fiber now, then we won't have to dig 
into the ground to put in new infrastructure for at least 100 years. No 
copper or wireless broadband infrastructure can say the same thing.

The simple fact is that the rest of the world has already decided that 
the infrastructure that's going to form the foundation of 21st century 
economies are full fiber networks. China, Japan, South Korea, Sweden, 
and beyond: they're all picking a technological horse because there's no 
question that not only is fiber the best, it's the only one that we know 
today can not just deliver Mbps but easily Gbps to every home.

If we allow ourselves to buy into the idea that all broadband is created 
equal, and that all we need is infrastructure that can live up to 
today's demands without being prepared to handle tomorrow's, then we're 
setting ourselves on a road that will cement our lagging international 
broadband rankings in stone for future generations until we finally come 
around to recognizing that fiber is our future.

The only question left for us to answer is: do we want to achieve that 
future now before the rest of the world leaves us behind, or do we want 
to continue muddling through convinced that today's broadband is good 
enough to secure our future in the global economy.



-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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