I don’t comment all that often here, but very much pay attention to the voices 
of experience.  On Net Neutrality, I have plenty to say.  As with most of my 
FCC comments, what I filed 2 weeks ago with them went against the grain.  I am 
a purist who has been in telecom since I repaired my first CB radio for a 
neighbor at the age of 14.  I helped launch Metromedia’s cellular system in NY, 
 a company I was a part owner in was the first acquisition of Fleetcall in NY 
City.  Anyone as old as me would remember that Fleetcall became NexTel, and for 
the real youngsters, they were acquired by Sprint for what turned out to be a 
total write-off of $35 billion in December of 2004.  I have been using 
unlicensed radio to link communications sites since long before it went 
digital.  

 

One thing my experience and observations have taught me is that nothing 
promotes innovation like free market.  We need not look beyond our own industry 
to prove that.  When no one would service 40% of America, we collectively built 
an industry that matured into a recognized and respected market sector.   I was 
involved in the previous formation of an industry that is both parallel and 
intertwined with WISPS, that of home satellite television. 

 

Back in the mid 1970’s a band of tenacious, adventurous experimenters took 
handfuls of surplus junk and built home earth stations.  In short order we went 
from being pirates and thieves to an established medium to reach rural America. 
 It wasn’t long before the big money found us and pushed us out of the way.  We 
went from a place where we could make a respectable income to being lackeys for 
DirecTV and DISH who generously paid us a few dollars to do the job and then 
gave us a big residual of 50 cents to about two dollars, on subscribers that 
ARPU of $100 or more.

 

WISPs have been struggling to keep up with the Netflix demand since they went 
to Internet delivery in 2009.  Systems big and small quickly found their choke 
points.  And like in highway design, if you upgrade one intersection, the 
traffic jam just moves to the next unimproved intersection.  The problem is, 
unlike the highway department, we don’t run on tax revenue.  We have to charge 
subscribers for a service that is both fair and responsive to their needs.

 

The SPRINT concept in the article is the most fair and responsible way to 
assure that our infrastructure can meet the demand, and that those creating the 
demand are the ones paying for it.  The FCC needs to stop cow-towing to the 
illiterate public who are still touting that they need to “protect the FREE 
Internet”.  Who gets this for free?  If you are in a coffee shop, the 
proprietor is paying for it.  Public Wi-Fi is advertising or tax subsidized.  
Do we get power, water, heating for free?  

 

Ten years ago we projected a mass movement from the PSTN to VoIP.  Even the 
industry experts never predicted a loss of 48% of copper lines in 10 years.  
What was built up over a century dissipated in the blink of an eye.  We are 
again on the cusp of a shift in the paradigm that will see cable and satellite 
users shift to Internet based delivery on any device they desire.  The same 
dramatic reduction witnessed in copper phone lines awaits the traditional 
Multichannel marketplace.  And along with the big guns, we are on the front 
line.  We will be expected to deliver copious amounts of data to subscribers as 
they stream HD video and music to multiple devices in their homes and offices.  

 

We, the WISP industry, need to step up our game if we are going to remain part 
of this.  We are going to have to emulate the cellular industry with frequency 
reuse like we never imagined.  We are going to have to replace our older radios 
with ones that can deliver the required bandwidth, and our backhauls are going 
to need enough capacity to handle all this.  

 

But how do we justify the cost, who do we charge, and how do we do it?  The 
early agreement with Verizon and Netflix that received the FCC’s blessing was 
never going to benefit everyone.  How long would it take for you and I to get 
Netflix to pay for our “fast lane”?  My guess was never.  

 

Netflix, Hulu, and the like have created a business model where they have no 
cost to deliver a product to their users.  They are using the infrastructure 
built and paid for by others, then stirring up the ignorant masses to complain 
to the FCC about the free Internet.   I have learned the hard way that no 
matter what is done to increase bandwidth, the increase is negated in short 
order, often weeks if not days, by savvy users that realize they can pull 
another stream and waste no time setting it up.

 

The simple answer is, let the market decide.  If you want Netflix, each stream 
will cost you a monthly fee.  Likewise for other streaming services.  This way 
the user pays, not everyone.

 

 

 

 

From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf 
Of Josh Luthman
Sent: Thursday, July 31, 2014 10:39 AM
To: WISPA General List
Subject: [WISPA] Net neutrality, The beginning of the end

 

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<http://www.droid-life.com/2014/07/30/12-a-month-for-facebook-sprint-tramples-over-net-neutrality-with-new-prepaid-plan/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+DroidLife+%28Droid+Life%29&utm_content=FaceBook>
 
&utm_medium=feed&utm_campaign=Feed%3A+DroidLife+%28Droid+Life%29&utm_content=FaceBook

Josh Luthman
Office: 937-552-2340
Direct: 937-552-2343
1100 Wayne St
Suite 1337
Troy, OH 45373

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