The Federal Communications Commission issued the long-awaited National Broadband Plan this week,
a 376-page document that makes clear the agency accepts the reality of the current wireline
duopoly — and as such, has decided to put the burden of competitive pressure on mobile
broadband.
There are many consumer-friendly aspects of the plan,
such as
opening up set-top boxes (GigaOM Pro, sub req’d) and creating an easy-to-understand
label that shows people what their broadband connections are capable of (see image). But the FCC
has clearly decided against a plan
that requires a new infrastructure buildout when the current infrastructure will suffice. If only
the agency had moved to tackle this issue back in 2002, when the telecommunications providers
were thinking about how their fiber rollouts were going to occur, and implemented policies that
could have resulted in a shared nationwide fiber network.
When Life Gives You Lemons …
But now that Verizon is spending $19 billion to push fiber to the home for 80 percent of its
footprint (although that push may be slowing) and
cable providers have pushed fiber out closer to the home in their networks and are deploying
DOCSIS 3.0 upgrades, the FCC needs to work with what ISPs have in the field. So the bulk of the
wireline reform coming out of the plan consists of regulatory tweaks to address predatory special
access charges, inter-carrier compensation rules, set rates for access to underground conduits
and utility poles, and in-depth proposals for universal service fund reform.
Yes, the FCC is proposing
that wireline networks will be faster if the 2020 goal of 100 Mbps speeds down and 50 Mbps speeds
up are met, but that’s a goal, not something I’m sure the FCC can and will enforce.
Another goal is 1-gigabit connections to community centers and schools, which depending on how
it’s implemented could help drive faster networks as well. But again, those are 2020
goals.When it comes to ensuring competition
between the duopoly in the short term, the FCC will rely on data. The plan proposes changes
to both the type and amount of data the FCC collects, and also asks the Bureau of Labor
Statistics to collect information on how people use broadband.
The FCC says it will watch for price discrepancies and inequalities as newer networks are
deployed and the types of services available to consumers diverge in speeds from wireless
broadband’s 1 Mbps downstream speeds to fiber’s 100 Mbps downlink speeds. However, it
doesn’t lay out how such inequalities — if they do emerge — will be addressed.
Rather, mobile broadband is the star of the plan, both because it offers hope of a third
broadband competitor in many areas, and also because of the potential for future growth and
innovation of the U.S. economy.
Airwaves Are The Key
I’ll write more in the coming weeks on the spectrum aspects of the plan. The details as to
how the FCC plans to go from having 50 MHz available for mobile broadband today to 500 MHz in 10
years will result in a pretty big legislative battle as the FCC tries to nab broadcaster spectrum
and incumbents and tech firms position to own large chunks of those valuable airwaves.
But the real benefit of mobile broadband as a competitive stick is threefold: it can cover the
entire country relatively cheaply, existing operators are already moving to all-IP networks that
the FCC sees as the future of its regulatory jurisdiction (the airwaves will always be part of
the FCC oversight even if Internet applications and services are not), and the infrastructure is
easily upgradable without tearing up streets and installing gear into people’s homes.
So to push the mobile broadband envelope the FCC wants to take actions to free up 300 MHz by
2015. The chart lays out the spectrum bands and the timing for this FCC airwave grab, and I offer
a bit more context below.
WCS — This spectrum is contentious because
Sirius Satellite is worried about interference from any cellular operators deploying service
in this band. The plan proposes to resolve that issue this year.
AWS 2 and 3: These 60 MHz should be relatively easy to get to auction or to
allocate for mobile broadband once the government makes some decisions. At issue with some of
this spectrum is whether it will be paired with spectrum the FCC will have to carve out from
other federal holdings. The agency hopes to figure this pairing issue out with the National
Telecommunications and Information Administration by Oct. 1. Paired spectrum is useful for
deploying the more common, forward division multiplexing-type of networks.
D Block: These 10 MHz were too much trouble during the last spectrum auction
because they were burdened with huge public safety network rules. The goal, to which the plan
dedicates an entire chapter and $6.5 billion, is to build out a nationwide public safety network
so all local, state and federal first responders can communicate in case of an emergency. These
10 MHz will have to connect with spectrum set aside for the National Public Safety network, and
will have to be deployed to work with commercial handsets using LTE network technology. This
makes such spectrum a good bet as a safety valve or a backup chunk of spectrum for an existing
provider.
MSS: Mobile satellite service providers such as Terrestar, SkyTerra, and
Inmarsat own spectrum in this band because they’ve promised to build a combination
satellite-and-terrestrial network. So far they’ve
failed to make good on that promise, and I have huge doubts that they
ever will. The FCC appears to be relaxing some of the more stringent requirements on
satellite providers to see if they can deliver a credible mobile broadband service with devices
consumers will buy. If the FCC eliminates some of the satellite requirements, the MSS spectrum
holders
hope their spectrum becomes more valuable.
Broadcast TV: The FCC hopes to pry 120 MHz away from broadcasters in urban
areas, where cellular providers have the most need for spectrum, which will pit the FCC and
carriers against big broadcasters and over-the-air television watchers in big cities. Oh. My.
God. It’s going to be a showdown. But I’m glad the FCC isn’t going for a token
spectrum grab from rural broadcasters, which would be easy but wouldn’t alleviate network
congestion.
The FCC isn’t making friends in Congress (or with over-the-air television buffs) with this
plan, but as the final arbiter on how televisions have to send out their signals, it has the
ability to squish some channels together and dictate how broadcasters use their 6MHz channels. To
ease the pain of the FCC flexing this power over broadcaster’s spectrum allotments,
it’s asking Congress to change the way spectrum auction proceeds are shared so as to let
broadcasters have a piece of the pie. To bolster its controversial move, the FCC points out that
cellular companies have valued each megahertz of spectrum per person covered at $1.28 while the
television spectrum is currently valued at 11-15 cents. Why? Because mobile broadband is the
future and over-the-air television is on its way out. Heck, the FCC even notes that poor
consumers could get their broadcast through subsidized IPTV instead.
Getting more spectrum is the biggest aspect of expanding mobile broadband, but rules to make it
easier to deploy microwave backhaul are also in the queue for 2010. And the FCC pledges to
allocate a band for unlicensed wireless, although it doesn’t specify where this band might
be. It also touches on the white spaces
broadband the FCC approved in 2008, basically saying it wants to see devices and networks
using white spaces broadband soon. We
do, too. We thought we’d have more than a few trial networks by
now. For folks watching and waiting for this flood of spectrum, the FCC and the NTIA set a
deadline of Oct. 1 of this year to identify additional spectrum for use.
Since mobile broadband is the lynchpin of our federal broadband plan, we’d better get this
right.
