Google Fiber goes boringly conventional in Seattle

10 June 2017 by Steve Blum
, ,

At first it tried to disrupt the broadband industry in the U.S. with full scale fiber to the home deployments, but the financial realities of a capital intensive business with a long term return on investment horizon has forced Google Fiber into a traditional small ISP business model. Its latest move – into a high rent Seattle high rise – is a low risk venture. According to a blog post by its Webpass subsidiary…

Today, we announced that Webpass is ready to move into the Emerald City, one Ethernet-wired building at a time.

… More

CPUC takes another look at a Santa Clara County FTTH subsidy

9 June 2017 by Steve Blum
, , ,

A stalled Santa Clara County fiber to the home project might get back on track this week. A proposed $1.1 million grant for the Light Saber Project is scheduled to go in front of the California Public Utilities Commission next Thursday.

It’ll be the second time that commissioners have taken a look at it. LCB Communications/South Valley Internet, an independent Internet service provider in southern Santa Clara County, applied for a $2.8 million grant from the California Advanced Services Fund (CASF) in 2015 for a plan to build out fiber to more than 500 homes in the San Martin and Paradise Valley communities, south and east of Morgan Hill, respectively.… More

FCC begins Act II of apartment, condo broadband access drama

8 June 2017 by Steve Blum
, , , ,

The rules that govern how video, voice and Internet services are delivered to people who live in what the Federal Communications Commission calls multiple tenant environments (MTEs) are complicated. It’s a universe that includes apartments and condominiums (multiple dwelling units/MDUs), and commercial real estate, such as shopping malls or office buildings. Later this month, the FCC will consider, and likely approve, the start of a broad enquiry that could result in an update and overhaul of those regulations.… More

California assembly considers preemption of local pole ownership, cell site permits

7 June 2017 by Steve Blum
, , ,

A bill to largely end local government control of municipally-owned light poles and other vertical infrastructure and eliminate discretion over where cell sites can be located has landed in the California assembly. The perks are limited to "small cells", but the way the definition is written, it’ll allow pretty big installations anywhere in the public right of way or in commercial or industrially zoned areas, as well as setting rental rates for publicly-owned poles at below market rates.… More

PG&E adopts a dark fiber and wholesale telecoms services business model

6 June 2017 by Steve Blum
, , , ,

The low ball fiber business plan that PG&E submitted to the California Public Utilities Commission drew criticism from several organisations that probably didn’t fully understand it – publicly traded companies usually downplay the profit potential of new ventures, to avoid hyping stocks and running afoul of federal securities laws. In its application for certification as a telecommunications company, PG&E estimated that it "will have approximately 1-5 customers after one year and will have more than 5 customers by the fifth year after commencing provision of the services".… More

California assembly votes to throw broadband speeds into reverse

5 June 2017 by Steve Blum
, , ,

The California assembly voted to lower the state’s minimum Internet standard to 6 Mbps download and 1 Mbps upload speeds. By a vote of 67 to 5, and with eight members abstaining, assembly bill 1665 was approved and sent onto the senate last week. It only needed 54 yes votes to pass. All five noes and eight abstentions came from republicans, but a dozen others joined with democrats to vote in favor.

AB 1665 reinstates a tax on phone bills that’ll pay for adding $330 million to the California Advanced Services Fund (CASF), the state’s primary broadband infrastructure subsidy program.… More

Better data would support better muni broadband decisions

4 June 2017 by Steve Blum
, , ,

Not suprisingly, the municipal fiber to the home analysis done by the University of Pennsylvania’s Center for Innovation, Technology and Competition, comes to the conclusion that the more successful systems (or, from the study’s glass half empty perspective, the ones that are failing less badly than the others) keep revenue high and costs low. Operating efficiency – the ratio of operating costs to revenue – and revenue per household had a greater impact on near term positive cash flow and long term capital payback than the per household construction costs…

The fact that these regressions yielded statistically significant results based on only 19 or 20 observations is remarkable.

… More

Cities need to get out in front of self driving cars, League of Cities says

3 June 2017 by Steve Blum
, ,

Broadband availability and self-driving cars are thoroughly linked issues for local governments, according to a white paper on autonomous vehicle policy published by the National League of Cities. Sitting back and letting telecoms providers – wired or wireless – take the lead is a bad idea. Instead, the League argues, local governments should use what policy and political tools are available and jump in with both feet…

Cities should be aware that their wireless broadband needs will grow exponentially in the future, and should plan with the understanding that their infrastructure will need to be constantly updated.

… More

Muni FTTH study estimates the cost of local subsidies

2 June 2017 by Steve Blum
, ,

Municipal fiber to the home systems are not money makers, according to a study done by the University of Pennsylvania’s Center for Innovation, Technology and Competition. It started by identifying 88 muni systems in the U.S., and then dove into a top-line financial analysis of the 20 that publish separate separate operating statements – the rest consolidate their FTTH reporting with the results from their muni electric utilities.

According to the authors, less than half are showing positive cash flow and most of the rest aren’t making enough to pay back basic construction costs…

The data contained in this study are sobering.

… More

PG&E will slow walk its own fiber builds, just like everyone else's

1 June 2017 by Steve Blum
, , , ,

It’s not going to speed up the process for reviewing requests to attach fiber optic cable to its utility poles, but PG&E won’t give its own, in-house telecoms unit any short cuts either. That’s the top line from PG&E’s reply to objections filed against its request for formal certification by the California Public Utilities Commission as a telecoms company. Several companies and organisations that are, at once, potential competitors, customers and suppliers to a PG&E-operated fiber optic venture (that’s the interconnected nature of the telecoms business) asked the CPUC to delve deeply into the way utility pole attachments are managed.… More