Telecom analysis including broadband
Recently, FCC Chairman Tom Wheeler gave a speech arguing that “A 25 Mbps connection is fast becoming ‘table stakes’ in 21st century communications,” with the implication that anything less than 25 mbs is not really broadband.
This is an odd sort of statement, as it appears to be based not on any real analysis, but simply on the Chairman’s opinion. He tried to provide some rationale for this number when he stated “It’s not uncommon for a U.S. Internet connected household to have six or more connected devices – including televisions, desktops, laptops, tablets, and smartphones. When these devices are used at the same time, as they often are in the evenings, it’s not hard to overwhelm 10 Mbps of bandwidth.” I don’t know about you, but I personally am generally not using two devices at once. And as the Census Bureau reports, the average household size in the U.S. is 2.58 people with the median size being less. So, the majority of households are not overwhelming 10 Mbps of bandwidth.
So, if sub-25 Internet connections are not really broadband what does this mean in terms of what nations have … Read the rest
I can see the headlines now: “ISPs tell Wall Street and Washington mostly, but not quite exactly, the same thing about Title II.” Doesn’t quite have the right ring to it…
Instead, Brian Fung at the Washington Post has been reporting a number of stories attempting to show that network operators are telling Wall Street and Washington two entirely different stories and musing on some potential policy implications of such possible discrepancies.
Yesterday afternoon, Bob Quinn with AT&T expressed his surprise at the line of stories. I must say I agree with Mr. Quinn – Fung is really stretching his interpretations. Here I suggest we go to the primary sources: The transcripts of interviews with executives from Comcast and Time Warner Cable that Mr. Quinn reproduces are quite up-front with their thinking on Title II. They clearly state that the Title II framework is bad policy and bad for investment. Nobody in D.C. has claimed that the world will melt under Title II. But, let’s be clear, to the extent any of these statements can be read to say carriers can live under Title II with forbearance done properly (a … Read the rest
The Open Technology Institute recently released the latest version of its “Cost of Connectivity” report. We at ITIF have repeatedly criticized past “Cost of Connectivity” reports for their flawed methodology (criticisms, by the way, shared with many others). The most recent OTI report continues this tradition, relying only on advertised broadband plans in a handful of cities. In keeping with this tradition, we offer the following constructive criticism in hopes that OTI will continue to improve their methodology going forward. One big improvement in this year’s report is the decision to drop the comparison of “Triple Play” bundles, with the recognition that the variation in cost and quality of programming bundles from country to country is too great to offer a meaningful comparison. Hopefully next year’s report will recognize the U.S. broadband market for the success it is and leave us with even less ammo for criticism.
It is not clear that we can draw any real conclusions from this year’s collection of data, given the tiny sample size and the disparity between advertised and actual speeds in Europe, not to mention the remarkable differences in history, culture, and … Read the rest
Rashomon, for those readers who aren’t big film buffs, is a 1950’s Japanese masterpiece about a rape and murder mystery told through four different points of view. The film’s brilliant technique, now commonplace in modern narratives, presents different witnesses’ contradictory, self-serving accounts of the crimes with the audience left to sort out the truth. All the spin in policy debates these days can make interpreting current events feel like a similar exercise, with some advocates being all too eager to seize on and promote a particular interpretation, no matter how strained it may be. Case in point: Harry Reid’s recent letter to David Segal of Demand Progress on net neutrality.
Appreciating the subtleties of Reid’s letter requires some context. The most recent iteration of the now decade-long debate over net neutrality has actually seen widespread agreement over the general principles of the open Internet. All the major carriers insist they have no interest blocking or degrading traffic or splitting up websites into tiers or packages. The real controversy is over the appropriate jurisdictional framework for the FCC to build its rules on. There are two possible starting points: either … Read the rest
Internet interconnection usually doesn’t make for big news. The term refers to the agreements that connect up the Internet’s component networks and since they usually “just work” they rarely attract the media’s spotlight. We don’t particularly care how our House of Cards gets to our screen or whether our video bits travel long distance though a transit provider or cached closer to home on a content delivery network (CDN), so long as it works. So long as it works. Now old news, it was around October when some Netflix users first began seeing their streams slow.
This touched off a rather public spat, with a back and forth of blog posts from Netflix and Verizon. Tensions rose after Netflix began placing notices on customer’s screens accusing Verizon’s network for the slow streams. Verizon responded with a cease and desist with which Netflix appears to have complied. On top of all this, FCC Chairman Tom Wheeler recently released a statement announcing a relatively informal investigation into recent interconnection deals.
On Wednesday, at an event hosted by the Congressional Internet Caucus Advisory Committee, David Clark, noted Internet engineer and MIT researcher, … Read the rest
This past Thursday, the FCC voted to kick off a new attempt at open Internet regulations, marking yet another milestone in the history of the net neutrality debate. Over the years ITIF has been at the forefront of this debate, and will continue to do so. Below is a top-10 list of ITIF publications that both explain how advanced IP networks actually work and advance our “third way,” middle-ground approach. To see all of ITIF’s work in this area, please go to www.itif.org and click on “issues: broadband”
In May, 2006 Rob Atkinson and Phil Weiser bemoaned the fact that “the network neutrality debate denies the reasonable concerns articulated by each side and obscures the contours of a sensible solution.” Eight years later, and this paper’s diagnosis and cure still hold value. It argues that policymakers should ensure a baseline of a high-bandwidth, best-efforts Internet connection while taking an “antitrust-like” approach to any discriminatory access arrangements.
One of the meatier ITIF publications on net neutrality, this report digs into the … Read the rest
The Wall Street Journal reported Wednesday that FCC Chairman Tom Wheeler was set to circulate a draft of rules to be proposed to codify net neutrality. This initial story prompted a sudden outpouring of inaccurate reporting and misplaced vitriol. There are a number of unfortunate misunderstandings ITIF would like to help clear up in the hopes that Chairman Wheeler is not deterred from what is a very reasonable approach to a difficult policy problem. The Chairman took to the FCC blog on Thursday to try to “set the record straight,” unfortunately, with today’s powerful echo-chambers and viral proliferation of over-reactions, setting the record straight is a very difficult task.
Chairman Wheeler explained that he intends to propose rules that will allow for a case-by-case analysis of traffic management, allowing practices that are “commercially reasonable” to all on reasonable terms. Any type of practice that harms competition or consumers as a result of abuse of market power would be prohibited. ITIF has long been an advocate for these types of restrictions on broadband providers.
We believe the general direction of Wheeler’s proposals to be a good balance between protecting consumers and … Read the rest
Government funding of broadband networks is once again garnering discussion. FCC Chairman Tom Wheeler’s Feb. 19 announcement on Net Neutrality indicates that the Commission may consider Federal pre-emption of state laws restricting municipal communications networks. On the tail of that announcement comes a report from the Government Accountability Office providing some anecdotal evidence of the way small businesses use ten different federally subsidized or municipally run networks. Unfortunately, it is difficult to draw any general conclusions from the report, as it draws on only a handful of interviews with users of a select few networks – a limitation the report itself acknowledges.
I have no beef with the report itself – this GAO report, like all GAO reports I’ve read, is precise, well-written, and self-aware, though I must say I question the value of a study with such a small sample size and so little information about the networks discussed. My concern is that many are misinterpreting the report as offering broad evidence of the success of government run or funded networks. As the report says, “the results of [the GAO’s] interviews cannot be projected to all service providers and … Read the rest
Opponents of the Comcast/Time Warner Cable merger have scrambled to show that companies with larger market shares will hurt consumers, proposing theories built around flawed assumptions. This includes arguments that the new Comcast will suddenly become the only provider or saying that the deal will make the new Comcast a monopsony purchaser of television content.
One metric that they have stumbled upon is data from the American Consumer Satisfaction Index, which gives Comcast, Time Warner Cable, and other television and Internet service providers low scores as compared to other industries.
Several articles (like this one or this one) have bent this finding to argue that a larger company will result in less competition and lower customer satisfaction. Before using the rankings as mud to sling in their holy war against consolidated markets, they should have bothered to look at the reason for the low scores and what they actually say about market competitiveness.
This is what the ACSI data actually shows.
Providing reliable, high-quality Internet and television services across a national network is much more difficult than taking a hamburger order or shipping products bought online. When things … Read the rest
In arguing that “American regulators should block Comcast’s proposed deal with Time Warner Cable,” a recent article in The Economist displays a surprising number of misunderstandings about how our broadband and television markets work. The magazine argues that the combined firm, by having 30% of pay TV subscribers, will be just too big, a “fearsome” “Goliath” that will force only its own content upon its subscribers and only at a trickle. Strange words from a publication with a column named after Schumpeter.
The first stunner comes with the assertion that Comcast has 55% of TV and broadband subscribers, so long as you ignore . . . subscribers of competing TV and broadband providers. Confused? You aren’t alone. Satellite TV programming, telco operations like AT&T’s U-verse, broadcast, and over-the-top are all substitutable to cable TV. Sure, cable is well-positioned today, but explicitly ignoring competitors in the analysis is too far. The ability for different platforms to compete, now and in the future, is a key premise of our current competition policy. As we continue the convergence on the IP platform, different underlying technologies can compete in the provision of broadband and … Read the rest