Peter : On Rad's Radar?
Peter
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

broadband

Pouring Billions

September 21, 2009

The WSJ has an article titled, "AT&T, Verizon Still Pouring Billions Into Mobile Networks". It notes that cellcos have already spent billions upgrading their networks to 2.5G and 3G -- and now will spend billions more on 4G.

In addition, both companies are also dumping billions into International routes, domestic broadband networks, and their respective triple play networks, U-Verse and FiOS. 

On top of that, both companies have been acquiring companies, like Alltel and Centennial. Ummm, how are they not toppled over in debt? 

These companies have felt intense pricing pressure from cable companies as well as T-Mobile and Sprint. Customer Acquisition and Retention costs have to be high, even as ARPU remains about the same.





Only 2 Rounds of Broadband Stimulus

September 10, 2009

Looks like the latest testimony says that there will only be 2 rounds of funding under the Broadband Stimulus act.

V. Future Funding Rounds Although NTIA and RUS previously indicated that we planned to hold up to three rounds of funding, our review of our experience in this first round, leads us to now explore the option of holding just one more round of funding. This more consolidated approach may have the potential of yielding benefits for all stakeholders.

Too many apps for way too much money (basic math anyone?) has closed the window for some applicants who were on a holding pattern to see what could be learned from Round 1.

What did we learn? Rules change fast these days.





The Stimulus Spend is Opportunity

July 23, 2009

I talk with many CLEC's and ISP's that are looking at the BTOP and BIP programs to see if there is opportunity for them. As I said in the podcast with Occam Networks, most of the funds are earmarked for companies already collecting USF funds. Why do I think that? Because it is a safe bet and politics is about safe bets.

I'm attending Tech Data's Technology Solutions Tour. This morning started with TD SVP Pete Peterson discussing how to translate the stimulus spending into technology opportunity.

Occam Podcast about the NOFA

July 21, 2009

Alphabet Soup in Broadband

July 18, 2009

If you have been even slightly following the Broadband Stimulus program, you will notice that there is an increasing amount of acronyms to keep track of - ARRA, BIP, BTOP, etc. Luckily, here's a glossary from the Knight Center of Digital Excellence.

The key words to know are Unserved and Underserved because that is where the money is earmarked to go. But you have to decide if you will apply for the RUS Broadband Initiatives Program (BIP) for broadband projects in rural areas or for the NTIA Broadband Technology Opportunities Program (BTOP) for broadband projects in unserved and underserved areas of the United States.

Each program has separate criteria. On a soon to be released podcast with Occam Networks, we discussed much of this.



Is Cellular the new Crack?

July 13, 2009

Stacey at GigaOm writes about the data problem for cellular companies. On the one hand, data revenue of $40 to $60 more per month from an account seems pretty good; on the other hand, 70% of the traffic on a tower is from data cards (about 3-4% of subscribers). This seems like they should have known this.

Voice calls take up less than 10K per stream. 3G data takes up to 3MB.

USF and Rural Reform

July 4, 2009

In a recent conversation with a buddy of mine at a state PUC, we were discussing small rural ILEC's. Many are cash strapped which makes providing advanced services difficult - no cash to buy a head-end (half a million or more). 

RLEC's can get RUS loans for the upgrade to fiber, but OPEX and labor for installation are not covered by the loan. That creates a quandry.

Why are the RLEC's cash strapped? They get all that Universal Service funding (both state and federal).



Wouldn't Eminent Domain Work?

June 19, 2009

BellSouth and Cox fought Lafayette (LA) over the municipal fiber project (LUS) to the  tune of $500,000 in legal fees. Who do you think paid those fees? Taxpayers and consumers.

Then there's the Embarq, TimeWarner Cable fight over the Wilson (NC) municipal fiber project called Greenlight. It was a $28M project.

Usage Based Billing Rant

June 18, 2009

Occam Networks has a pretty good blog. Today's topic is usage based pricing. I disagree with the usage based pricing.

As I see it, we have had (mainly telco) rate hikes since 1999 on the promise of Broadband. In fact, in Penn. Verizon promised DS3 to the home.



Broadband Funding Round-Up

June 15, 2009

Everyone has some plan to spend money for broadband now that the BTOP is out there.  Much of the broadband problem revolves around lack of fiber. There's no conduit and no fiber, so what do you do?

This one blog post explains the conduit and fiber access dilemma and how if it is not addresses will create problems down the road. 

Then you have a couple of Congresspeople pushing a bill to build conduit into any highway expenditures. Except the Highway Trust Fund is broke.

Maybe we need to stop looking at the federal government for broadband deployment and start looking at the business plan for after you sink all those assets in the ground. Need we forget that there is plenty of fiber in the ground from companies that have long been forgotten that lies unused (because no one knows where it is, where it goes or who owns it). 

At the end of the day, there needs to be a business plan that allows for sustainable broadband.







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