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story category Japan Makes Unbundling Work
Faster, cheaper -- and leading to more innovation?
(old news - 11:09AM Wednesday Aug 29 2007)
tags: business · world
More Japanese broadband adoration, this time from the Washington Post, who explores the nation's growth as a broadband superpower. A nation helped in part by geography, regulators there have (unlike the United States) supported line sharing and invested in infrastructure to the benefit of consumers:
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The opening of Japan's copper phone lines to DSL competition launched a "virtuous cycle" of ever-increasing speed, said Cisco's Pepper. The cycle began shortly after Japanese politicians -- fretting about an Internet system that in 2000 was slower and more expensive than what existed in the United States -- decided to "unbundle" copper lines.

For just $2 a month, upstart broadband companies were allowed to rent bandwidth on an NTT copper wire connected to a Japanese home. Low rent allowed them to charge low prices to consumers -- as little as $22 a month for a DSL connection faster than almost all U.S. broadband services.
Unbundling has also worked for the French broadband industry. During that same time period, unbundling in the U.S. was scrapped by an incumbent-controlled FCC, resulting in the slow death of the majority of independent ISPs. Japan's broadband successes were also recently touched on by Bob Cringely, who argues that luck played a part.

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Forums » Japan Makes Unbundling Work
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woody7
Premium
join:2000-10-13
Torrance, CA
·EarthLink
·DSL EXTREME

hmmm.....

This is like beating a dead horse in this country. We will never see this at least in my life time. Here it is all about the money, not the consumer. Whenever I read about these stories I just sigh knowing it will never happen here. Just like all the locked phones that we get. Unless there is a change we are doomed. JMT
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BlooMe

danza
Premium
join:2002-08-23

No surprise. Government in the US

does not have the best interest of consumers. They are all lobbied by the telcos/etc. while most of the consumers are ignorant and don't really care about their speed anyway.

kapil
The Kapil

join:2000-04-26
Chicago, IL

Really?

Is it really a surprise that other countries are making advances by putting national and common interests ahead of petty greed, nepotism and politics? The whole time we're busy, umm, marching democracy into all corners of the world.

Japan may have lost the war, but since then they have owned our economy. Smart people...hit us where it hurts the most, our pockets!

Unbundling can work. It is a sound concept. The bastardized implementation of it at home notwithstanding.

jgkolt
Premium
join:2004-02-21
Lakewood, OH
clubs:

Re: Really?

We are also Japans military support since the end of WWII so they CAN divert more time, attention, resources, and money into non security programs such as that.
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soccerguy

join:2004-06-28
Seattle, WA
·Clearwire

Re: Really?

This was a regulatory change, forcing a private company (NTT) to open up its lines to competition. There's nothing in this story (or the original Washington Post article) about the Japanese government spending its funds to lay wire or fiber to promote broadband competition.

The FCC could do the same thing if it wanted to (or if Congress exerted enough pressure) in a matter of months.
Automate

join:2001-06-26
Atlanta, GA
·Comcast

Re: Really?

said by soccerguy See Profile :

This was a regulatory change, forcing a private company (NTT) to open up its lines to competition.
Only partially true, NTT is 1/3 owned by the Japanese government.
soccerguy

join:2004-06-28
Seattle, WA

Re: Really?

A fair comment. Thanks for the correction.

Jodokast96
R.I.P Bassman442
Premium
join:2005-11-23
Erial, NJ
But once again, the big difference here is who paid for the lines in the first place. With government subsidized lines over there, you should expect to see a more open way.

jgkolt
Premium
join:2004-02-21
Lakewood, OH
clubs:

Re: Really?

i agree just mentioning the gov can shift its military resources to somewhat trivial stuff like this. Granit i want faster internet speeds but the safety and security is number one in the states. They also have problems over their supplying the bandwidth the consumer demands. I'm playing devils advocate here bty.
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skrupowies

join:2002-08-22
Wallingford, CT
clubs:
·AT&T U-Verse

said by Jodokast96 See Profile :

But once again, the big difference here is who paid for the lines in the first place. With government subsidized lines over there, you should expect to see a more open way.

It's nice to see that someone actually realizes and mentions this important piece of trivia. The government can do whatever it wants with it's own resources (which of course are ours to begin with) but should keep their greedy paws off what isn't theirs. Yes Verizon, AT&T, Quest etc are greedy but why shouldn't they be? After all they ARE in the business of making money and NOT in the business of ensuring free or low-cost internet to every man, woman, child and cow in the country.

Piggie
I Actually use Windstream
Premium
join:2005-11-23
Orange Springs, FL

Re: Really?

Yeap, right or wrong, that little piece of trivia is the difference.

While I see capitalism force some technology faster and cheaper , seems in as many cases it allows companies to hold back and squeeze the last nickels out of a system.

And the latter seems to be becoming more and more of the status quo. Very similar to the 1880's and 1890's. History repeats itself.
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T1 Rocky

join:2002-11-15
Dallas, TX
·Time Warner Cable

said by Jodokast96 See Profile :

But once again, the big difference here is who paid for the lines in the first place. With government subsidized lines over there, you should expect to see a more open way.
Wait, wasn't our copper infastructure wholly funded by the governmnt prior to 1985? Not to mention the $15 worth of line items on your phone bill today which the government "requires" the telcos to collect to maintain their network (which by the way the telcos spent literally hundreds of millions lobbying politicians to pass laws whereby the telcos are forced by the government to collect those fees for themselves!)

I have friends at AT&T who drink from the company cool aide and we debate how AT&T and Ed Whitacre have damaged the country by snuffing out telecommuniction development. If the telcos hadn't successfully lobbied the reversal of the Telecom Act of 1996 over the last 10 years then we could be just as wired as Japan.

But the media won't cover that story because it's not run a negative story about Verizon or AT&T when they are their biggest advertisers. Politicians aren't going to go after their biggest campaign contributors. So we continue in this cycle with no end in sight.

kontos
xyzzy

join:2001-10-04
West Henrietta, NY

Re: Really?

Wait, wasn't our copper infastructure wholly funded by the governmnt prior to 1985?
Do you really think it was?

Richard B
Fur It Up

join:2007-06-22
Portland, OR
·Comcast

Much ado about Nothing

So far the man gist is a bunch of activist are search search for a problem to apply a govenment funded solution. I do not think there is a broadband here in America the market is responding well thank you except for less tan .001% who think we need government funded 100MB sot they have their game server and torrents.
Do get me stared about this bad joke of being a "broadband superpower"that designation and $1.35 will get you a shot of espresso at Starbucks.
OverModded
Premium
join:2002-03-03
·Sprint Mobile Broa..
·Comcast


1 edit

Japan regulators have kept Japanese economy underperforming

regulators there have (unlike the United States) supported line sharing and invested in infrastructure to the benefit of consumers:
And it is also government regulators that have kept the Japanese economy underperforming for the last 20 years. Regulation also has a downside as well - a stagnant economy.
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batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:

Unbundle this.

FiOS is coming and copper must die.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
·AT&T DSL Service
·Cox HSI

Re: Unbundle this.

said by batterup See Profile :

FiOS is coming and copper must die.
Tell that to someome who is 10 miles outside of town. Hell, tell that to people in major cities under AT&T's control.

FIOS is coming. Yeah, probably right after the Sun explodes.

--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!)

Fox McCloud
Crazy like a fox.

join:2006-07-23
·Embarq Now Century..
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Re: Unbundle this.

said by KrK See Profile :

said by batterup See Profile :

FiOS is coming and copper must die.
Tell that to someome who is 10 miles outside of town. Hell, tell that to people in major cities under AT&T's control.

FIOS is coming. Yeah, probably right after the Sun explodes.

I think what he meant is that "fiber is coming" and "copper must die". This, I believe is the truth; after all, when copper becomes more expensive than fiber, I very much doubt the telco's will continue to use copper. It'll probably start with the small, independent telco's (like the ones that only cover 1-2 towns/cities) first, since they're going to be more for saving a buck than the big-boys are...then it'll trickle down to the largest independent telco (Embarq)...from there, the major players will have to follow or be far behind the rest of the nation in providing adequate bandwidth.
ltjordan

join:2001-12-02
Hyattsville, MD

Re: government doing something for the people.

Is this really a surprise to anyone? Everyone knows that the American government is really a front for big business.
Forums » Japan Makes Unbundling Work


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