Broadband Stimulus Package

New Occam Podcast Available: Jeff Heynen, Infonetics

Occam Networks — Wed, 10 Mar 2010 01:03:09 GMT

Last week, Juan Vela, our Strategic Marketing Director, conducted a podcast with Jeff Heynen, Directing Analyst, Broadband and Video for Infonetics Research. During the Podcast, Juan and Jeff discussed a variety of topics including the outcome of BIP/BTOP NOFA #1 as well as general industry topics including worldwide technology trends and the National Broadband Plan.

Take a listen and let us know your comments here.

Details Begin to Emerge on National Broadband Plan

Occam Networks — Mon, 08 Mar 2010 19:16:22 GMT

Converged Digest is reporting this morning that the National Broadband Plan, due officially next week, will have the following:

The FCC's upcoming National Broadband Plan will propose major changes to the Universal Service Fund, a program that will distribute more than $8 billion in support in 2010. In a blog posting on the FCC's Broadband.gov website, the following recommendations were made:

"Transition to a new Connect America Fund to extend broadband where it is not available now and to support ongoing service in those areas where it is uneconomic to provide service without governmental support � meaning that the total costs to deploy and provide broadband service exceed the total revenues derived from that broadband-capable network. Funding will be provided on a technology-neutral basis and open to any entity that can satisfy the thresholds established by the FCC."

Create a new, targeted Mobility Fund to ensure that everyone in the country has access to 3G wireless services. Some states are significantly lagging behind the national average for 3G coverage. The Mobility Fund would provide a targeted subsidy in such areas to bring those states up to the national average."

"Reform intercarrier compensation to gradually phase out per-minute charges, while providing carriers with the opportunity for adequate cost recovery from customers, and, where necessary, from the Connect America Fund. Adopt interim rules to address arbitrage. "

Obviously the details will matter a great deal, but it the transition periods are appropriate, this appears to be good news to rural carriers. The movement of recovery from voice minutes to broadband, and to move mobile operators out of the pool should help rural telcos.

What do you think?

National Broadband Plan: Enough Already!

Occam Networks — Thu, 04 Mar 2010 22:05:06 GMT

Untitled Document

If you follow even one telecom trade publication on a daily basis, it was hard to miss the coverage on yesterday's announcement regarding the FCC's Broadband Plan. In case you haven't read it elsewhere, the plan calls for up to $25 billion in new spending, much of which ($12-$16B) appears to be allocated toward a wireless "public safety" network for police and firefighters; the plan also recommends an additional $9B to expand broadband to rural areas though FCC officials say they don't believe Congress is likely to endorse more broadband spending. The much anticipated USF revisions also appear to be taking shape as do some of the speculations regarding competition. Today, ComputerWorld interviewed Blair Levin, the executive director of the FCC's Omnibus Broadband Initiative. I would recommend reading the entire interview, because it contains far more insight than I could summarize here, but at the outset, Levin clearly outlines his intentions for the plan:

"Levin agreed that the plan is inherently broad, including three U.S. priorities for broadband deployment: bolstering the economic infrastructure of the country; spurring broadband innovation and investment; and bringing access to broadband technology to everyone in the U.S., including the 92 million people in the country now without access to high performance Internet connections. "Most of the publicity about the plan has focused on getting more spectrum but a major concern of ours is using mobile applications for public safety, health care ... and general innovation in the economy," [Levin] said."

I find it frustrating that, with two weeks to go until the plan is revealed, the steady trickle of information coming from the FCC has given us some clues to the plan's general outline but there are still many missing pieces and a lot of speculation. I see both positives and negatives in what I've heard to this point but my initial reaction to all these teasers has been "Enough already! If it's ready, release it."

So I leave it up to our readers to help me fill in the blanks. What do you think the National Broadband Plan is going to look like? Will there be any surprises in store? Let's hear your comments.

On a related note, earlier this week we started working on some new podcasts, and today, Juan and I were on the phone with Karlen Reed, NTCA's Senior Regulatory Council. We covered this very topic, along with some of her insight on NOFA#2 and SmartGrid. I found it a very interesting conversation and will link to the post as soon as it becomes available!

-Rebecca

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RUS and NTIA Grant Infrastructure Project Application Deadline Extension

Occam Networks — Tue, 02 Mar 2010 20:39:49 GMT

This entry was posted on the BroadbandUSA.gov website today. Stay tuned as more details surface.

NTIA and RUS will grant a limited extension of time to file infrastructure applications in the second funding round. Specifically, applicants for BTOP Comprehensive Community Infrastructure projects will have until March 26th to file their applications to NTIA. Applicants for BIP infrastructure projects will have until March 29th to file their applications to RUS. Applications in NTIA's two other project categories - Public Computer Centers and Sustainable Broadband Adoption - remain due on March 15th.

Two Weeks to the National Broadband Plan - An International Perspective

Occam Networks — Mon, 01 Mar 2010 12:00:00 GMT

Last week was the FTTH Council Europe conference in Lisbon. I attended a panel discussion amongst regulators from Portugal, France, Spain and the UK, as well as two Service Provider associations (ETNA and ECTA). The topic for the panel was the European regulatory environment - what has changed in the last few years, and what progress is being made.

The regulator from Portugal presented the goal and difficulty for all parties: The goal of regulators worldwide is to "Promote Investment and Assure Competition." Five simple words, but very complex, because in most cases the two portions of the sentence are in direct conflict.

While the major telcos of Europe are still slow to deploy significant FTTH, the world's largest GPON network lives in the US with Verizon, who was given assurances of not having to share the network before they would invest.

That said, I found myself pleased, and agreeing with many of the ideas presented on the panel: Success will come through public and private partnerships. All geographies in a country (or in our case state) are not the same, so they should be looked at differently. The "Rural Divide" is a worldwide challenge. Governments will be required to provide a combination of both funding and sane tariffs to ensure infrastructure investment can see a return for the private party. Getting fiber to the side of an MDU only adds value if inside the building wiring is shared, or landowners have installed ducting to make new fiber or cable pulls easy.

When the Association speakers presented, they sounded like they could have come from USTA, NTCA or OPASTCO. The message was focused on two points: Make regulation clear and consistent. Use Government funds to increase adoption and usage of broadband so "if we build it, they will come." (Is it allowable to mix European telecom with a line from a movie about American baseball?)

Why does this matter to the US? Because two weeks from tomorrow, we will have our first look at the new US National Broadband Plan from the FCC. Here's to hoping it is clear, consistent and helps drive broadband usage.

Tallying Up NOFA 1

Occam Networks — Fri, 26 Feb 2010 16:51:01 GMT

According to the recent BIP program FAQ updates made available by RUS, NOFA 1 award announcements were to be completed by the end of February. And while technically RUS has a couple of days to announce new winners, it might be fair to speculate PRs won�t be circulated over the weekend.

There are a number of points that I�d like to surface after analyzing the 33 projects identified in the comprehensive list of BIP projects as of February 17. Keep in mind, these data points could change if RUS decides to announce more awardees from NOFA 1. If that happens, I�ll be sure to update this information.

1. RUS has awarded projects in 24 states with a few states like AK and IA receiving multiple awards.
2. So far, approximately $647M has been awarded from the BIP pool of funds. This is well shy of the nearly $2.4B allocated in NFOA 1 which is why I suspect the size of NOFA 2 is so large (approximately $2.2B). I�m not sure how the numbers are reconciled out but I don�t claim to understand government arithmetic.
3. Of the funds awarded, approximately $39.9M have been allocated to wireless broadband projects, $15.8M to DSL projects and $90.6M to middle mile projects. $409.1M has been awarded to FTTP projects. That leaves approximately $91.6M in last mile infrastructure funding for projects that don�t clearly identify technology. Most of this unidentified amount is associated with one particular broadband expansion project that is likely a combination of fiber and DSL.

The tally could continue to rise over the next few days but I think we�re fast approaching the end of NOFA 1. I�ve enjoyed covering this exciting program for the better part of a year and have learned much about the operations of Uncle Sam but I think it�s about time to turn the page to NOFA 2.

Any thoughts you�d like to share about NOFA 1?

You�ve Received Broadband Stimulus Funds � Now What?

Occam Networks — Wed, 24 Feb 2010 16:44:30 GMT

After months of grueling market investigation, network planning and stimulus program navigation, you�re company has been awarded broadband stimulus funds. Now what? Do you take your application committee out for a celebratory dinner and reflect back on the successful application? Perhaps, but I suspect most of the winning applicants of NOFA 1 are still uncertain about how to proceed with their funded projects.

It�s not for lack of understanding how to undertake a broadband infrastructure program. Most of the initial BIP winners have a history of building and operating broadband networks and the services they deliver. The uncertainty likely stems from the lack of comprehensive documentation communicating how applicants will receive their funds and repay loans. This may impact their ability to move forward.

Even if fund distribution and loan payment details were available, the reality is most projects � especially ones of significant size � will require careful planning and logistical coordination to assure successful completion.

In my opinion, the starting point to any significant project is communicating expectations and success criteria. And the initial audience may be internal staffing. Existing staff may want to understand project details, timelines and impact to staffing. This could include responsibility and staffing changes.

But the communication doesn�t end there. Contractors and consultants may request briefings to understand tentative schedules, project scope and funding terms. Suppliers of raw materials and critical components may ask for the same details to coordinate build schedules and negotiate component deliverables with suppliers. This is especially important in today�s contracted economy as inventories of raw goods and components have been reduced.

Finally, communication with funding agencies is expected to be comprehensive and at regular intervals. Understanding reporting requirements before the onset of project construction may help avoid future headaches as the real work of bringing broadband to rural communities progresses.

So your company has received BSP funds. What�s next? In my opinion, communication is next. Communication with internal staff, contractors, consultants, vendors and government agencies. Open communications will help set the right expectations within your company, with your contractors and suppliers and with the government. And that will go a long way towards successfully bringing broad band to your rural communities.

100 Squared - The National Broadband Begins to Be Revealed

Occam Networks — Mon, 22 Feb 2010 12:00:00 GMT

FCC Chairman Genachowski provided some peeks at the soon to be released National Broadband Plan. In a plan now being referred to as "100 Squared", Genachowski called for 100M households to have 100 Mbps of broadband bandwidth by 2020. Calling the plan "ambitious but achievable" he said the plan will call for the US to become or remain a broadband leader.

How will we pay for it? The answer is public/private partnerships, which seem to me to be like the latest NOFA funding structure. I support and encourage the FCC to do all they can to ensure a truly high-speed broadband network. I believe the details of the regulation will go a long way to assist or hinder the deployments.

This week is the FTTH Council Europe meeting in Lisbon. It will provide an update on Open Access networks and their progression. I'll give you an update next week

Google�s Gbps Experiment

Occam Networks — Fri, 19 Feb 2010 21:46:48 GMT

Over the past week, I�ve been chewing on Google�s announcement to enter the telecommunications fray and build a FTTP network capable of delivering 1 Gbps to consumers, businesses and other community anchors. While it is somewhat surprising to see Google approach the broadband market in this manner, the functional attributes of what is proposed should not be viewed as news.

To set the record straight, there are numerous service providers in the US � many of which are Occam customers � that have constructed and in fact operate a FTTP network capable of delivering 1 Gbps. It is fair to challenge the telecommunications industry to cite examples of a service offering where 1 Gbps is in fact delivered to the consumer. But the fact remains, the broadband infrastructure to support such a service is available in the unlikeliest of locations � rural communities.

But aside from the functional attributes of the network, there are bigger issues to consider. It is my opinion that Google will leverage this experimental network to advance two key initiatives. First, this experiment could foster an environment that can be looked to as the reference model for regulators and service providers to reference when negotiating open network and net neutral policies. While we could point to initiatives in Europe as references for open network modeling, having a local example would make for locally relevant case studies.

The second initiative I believe to be at play is the need to demonstrate what might be possible if broadband is seemingly unlimited at an affordable price. This bandwidth free-for-all could create an innovation engine that sparks the next wave of consumer generated entertainment and perhaps stimulate local economies. With unlimited bandwidth, methinks, applications and services will surely evolve leading to more business potential. Benefactors could range from application developers to consumers. Not to be overlooked, Google could also benefit from more ad space and direct access to consumers bypassing ISPs and traditional service providers.

Anyway you look at this experiment, there will be attention brought to the need to increase the availability of FTTP based broadband and the affordability of bandwidth. And for that, I�m thankful for the Google experiment.

What are your thoughts? Will Google succeed? Will this lead to policy changes?

NOFA 2 - Good Reasons to Resubmit

Occam Networks — Wed, 17 Feb 2010 18:03:32 GMT

The more I learn about the rule changes for NOFA 2 BIP at RUS, the more I am encouraging telcos to submit or resubmit applications. RUS has made a number of wise decisions about the requirements that will result in better broadband networks (all quotes come from the Federal Register of January 22, 2010):

1) Focus on New Service - All applications must be for areas outside of existing RUS borrower service areas.

2) Focus on High Speed Broadband - Extra points are assigned for wireline projects that are provide a service rate greater than 20 Mbps downstream and downstream combined. Given what I am reading about the pending National Broadband Plan, this helps prepare the infrastructure for the increased use of televisions as access terminals.

3) Focus on Cost Control - There is a limit of no more than $10,000 per premises passed for projects, unless a waiver is granted. This encourages facilities to be placed where a larger number of subscribers can be served.

4) Focus on Experience in Network Operation - NOFA2 places greater value on companies that today are running networks. This is especially true in the Middle Mile where the description says "RUS will still consider funding Middle Mile projects, but strongly encourages such projects only be undertaken by current RUS loan or grant recipients".

There are many additional changes that make NOFA 2 much more acceptable to rural telcos. The RUS listened, the rules improved.

What do you think? Are you in or out for NOFA2?