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Our National Broadband Plan Is A Bland, Boring Mess
Can it be saved by last minute changes?
by Karl Bode Friday 19-Feb-2010 tags: legal · competition · fcc · business · alternatives · bandwidth · Op/Ed · cable · legislation · content · net-neutrality · consumers · caps · wireless
Early glimpses of the FCC's national broadband plan didn't impress consumer advocates, who noted that the plan really didn't do anything to rattle the status quo. Most annoying perhaps is that the plan doesn't even attempt to tackle the broadband industry's biggest problem: a lack of serious competition among ISPs in many markets. The FCC didn't do much to shake off that perception yesterday as they unveiled the "national purposes" outline of the plan. In a press release (pdf) and in the full report (pdf), the agency tackles issues such as health care, energy independence, homeland security, and even "civic engagement."

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Once again however, the agency doesn't appear to be focusing on competition, nor does the plan at this juncture appear to make bold choices of any kind. While many of the goals and agendas listed are respectable (technology training for small disadvantaged businesses?), the list is an ocean of "safe," unoffensive policy targets (distracted driving, really?), the report fails utterly to tackle more major concerns in the sector, such as high prices, sub-par service, or the myriad of other problems caused by limited competition.

The report and slideshows do have a lot of very lovely pictures of individuals in various stages of technology use. But pretty pictures aren't of much use to users in broadband markets who have the choice of only one, overly expensive broadband provider. Nor does vaguely tackling "civic engagement" address the use of below the line fees to covertly jack up the amount that wireless and broadband customers pay each month. Addressing distracted driving isn't quite the same as exploring how incumbent carriers essentially control government and the legislative process in most of these partially-wired United States.

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One telltale sign that the plan doesn't address competition (which for the biggest carriers means lower revenues and more work) is the fact that the plan is due to be unveiled in just 26 days, and there's still not a single telecom lobbyist complaining. Carriers utilize an endless army of sniping, chatty policy vessels to attack and dismantle any and every competitive threat. They're all dead quiet. In fact, the NCTA (which represents the largest cable carriers) quickly issued a statement that quite simply gushed over the FCC's vague, nebulous outline.

"The FCC’s broadband team deserves enormous credit for their effort to identify key national priorities and achievable goals that will improve America’s economic welfare and enhance basic government and societal services that millions of citizens rely on," says the NCTA. "The key challenges and opportunities outlined today all recognize how critical broadband is and will continue to be to ensure the U.S. remains competitive in key economic and societal sectors."

The NCTA's statement, much like the glimpses of the plan we've seen so far, and in fact most interviews with FCC boss Julius Genachowski for that matter, all appear symptomatic of a broader disease. The plan's primary architects seem to be using a litany of words -- but few appear to be actually saying anything. The FCC appears to have done a bang up job helping everyone involved in the plan feel good, but the end product of this collaboration -- our first national broadband plan ever -- so far looks like a bland, uninspired policy mess that tries to be everything to everyone, and as a result accomplishes very little.

On a bright note, we are hearing from several sources that there are a number of people less than enamored with the end result, and some individuals within the FCC are trying very hard to get some tougher measures built into the plan before it's unveiled to Congress in 26 days. But this is Washington D.C. after all, and companies like AT&T, Verizon and Comcast have already done their part to ensure the plan doesn't rock the uncompetitive, duopoly boat. Perhaps we'll all be pleasantly surprised, but most indications are that this plan is going to land with a deafening thud heard from coast to coast.

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FBGuy
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join:2005-03-19

What exactly does the "national broadband plan" actually do?

is it like a law?

i'm really not understanding what the FCC's role is in all of this.
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Romney2012
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USA
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Re: What exactly does the "national broadband plan" actually do?

said by FBGuy:

i'm really not understanding what the FCC's role is in all of this.
The FCC was tasked by Congress in a law to develop a plan. I presume that Congress would then examine the plan and pass appropriate laws needed to implement the parts of the plan they feel appropriate. In other words, virtually nothing will be done.

Here is what I think will happen:
The USF will be revamped and expanded to increase the tax burden on internet users; cellphone users; and telephone users and the extra USF money will be doled out in those favored congressional districts so that the pols voting for this can send some pork to their home districts.

FBGuy
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2 edits

Re: What exactly does the "national broadband plan" actually do?

wow. for once I think they should've just done nothing. let me explain. I don't like the way things are, but obviously if this pols do anything they will mess it up worse. once again they are out of touch with reality. biggest thing they should be pushing for is more competition. the free market will/would fix these problems.

regardless they need to get net neutrality set in stone. but then again that shouldn't be part of a plan. that should just be the way it is.
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AutoBot

join:2002-01-12
Memphis, TN

Re: What exactly does the "national broadband plan" actually do?

I am tethered to my laptop because this is my only option for anything that could be called high-speed internet, out of touch is putting it lightly. I live 90 miles from my states capitol here in Arkansas, lets get with it on the rural broadband stuff....where is my 4G or DSL?

Scatcatpdx
Fur It Up

join:2007-06-22
Portland, OR

Re: What exactly does the "national broadband plan" actually do?

The probably the same place is you digital copper cable: in the city.

Don't expect we to subsidizes big cit service if you chose to live in the sticks.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: What exactly does the "national broadband plan" actually do?

said by Scatcatpdx:

The probably the same place is you digital copper cable: in the city.

Don't expect we to subsidizes big cit service if you chose to live in the sticks.
They said the same thing about roads and electricity. Thank God there are unselfish, long-term vision oriented people out there that ignore people like yourself.

Besides, why should rural folk be forced to provide city dwellers and their unsustainable lifestyle with cheap food?
bcreek

join:2009-07-01
Little Rock, AR
I feel you brother. I live in Little Rock and I still can't get any sort of broadband where I live unless I tether, and even then it's sketchy at best due to AT&T's crappy network. The biggest problem is that out where I live, cable companies lock down certain regions (in my case Charter), but they don't actually invest in upgrading their services to provide broadband to those areas that they fought so hard to gain exclusivity. AT&T has had DSL two miles down the road from me for years, yet they just can't seem to find the incentive to run an extra five miles of line up the road to deliver their service to at least 600-800 homes of which I'm sure 75-90% would sign up if the service was made available. My parents who are in the same situation as I am still use dial-up, and it seems like every few years they get a rate increase. I think they are now paying like $15 a month for 56kbps, the same price as the low-end DSL which is 768kbps.

In relation to this article, all the FCC is doing in this matter is running their big mouths so that in a few years when nearly everyone has access to LTE, they can pretend as if it was their influence that set the wheels in motion. The sad thing is that even if the FCC does come up with some wonderful idea that will drag America out of the broadband slum that its in now, at the rate that our government takes to get anything accomplished, there probably wont be a need for a Broadband Plan by the time this gets signed into law, since I believe mostly everyone will have access to LTE by that time.
PDXPLT

join:2003-12-04
Banks, OR
said by FBGuy:

I don't like the way things are, but obviously if this pols do anything they will mess it up worse.
the free market will/would fix these problems.
Got it. You're saying "zero regulation"; laisse faire and pure market forces will lead to broadband Nirvana.

regardless they need to get net neutrality set in stone.
Huh? I thought you wanted the giv't to keep "hands off"(?) How is net neutrality going to be "cast in stone" then? The ISP's ain't gonna do it, unless they are made to.
biggest thing they should be pushing for is more competition.
?? how can they be pushing for anything, if you want them to be hands off?

You seem to be contradicting yourself.

FBGuy
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join:2005-03-19

1 edit

Re: What exactly does the "national broadband plan" actually do?

bah. your right.

zero regulation won't work. why? the incumbents would get creamed if it worked that way.

so net neutrality is the alternative.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

1 edit

Re: What exactly does the "national broadband plan" actually do?

said by FBGuy:

bah. your right.

zero regulation won't work. why? the incumbents would get creamed if it worked that way.

so net neutrality is the alternative.
Your comment makes no sense. If the incumbents would be creamed without any regulation, then why enact net neutrality?

There are huge barriers of entry into the ISP market. That is the polar opposite of a "free market". Freaking google the term "Free market" before spouting.

LegoPower77
Abecedarian
Premium
join:2002-08-03
Midlothian, VA

Re: What exactly does the "national broadband plan" actually do?

Barriers to entry do not preclude a free market; neither does market concentration prove the absence of a free market.

By your definition, only the theoretical "perfect competition" construct would be a free market.

In a true free market, barriers to entry can be mitigated by forward contracting. For instance some oil and gas pipelines (huge barriers to entry) have been paid for in advance by investors willing to take the risk and fund the projects in the hopes of future profits. Thus small start-ups have been able to lay pipelines--not just the huge incumbents.

The real problems of barriers to entry vis–à–vis the broadband market are the exclusive contracts and franchise licenses which are problems of government action--not of any natural market structure.
ashworth

join:2001-10-06
Pittsburgh, PA
LTE wireless will be available to 80-90% of homes within 3-4 years, so this national broadband initiative means nothing. Didn't the FCC know that wireless was the future ?? Oh, that's right. they're a bureaucracy that doesn't know squat.
spendit

join:2006-09-08
Chatham, ON

Re: What exactly does the "national broadband plan" actually do?

Some people will always want to be hard wired instead of wireless. Think gaming. Wireless = very high latency and cant be avoided.

Scilicet
Premium
join:2005-04-11
Aurora, CO
So, is anyone really surprised at this?

Simba7
I Void Warranties

join:2003-03-24
Billings, MT

Re: What exactly does the "national broadband plan" actually do?

I'm not.. Leave it up to the lobbyists to cloud everyone's idea to what's really going on.

So.. Basically what this "national broadband plan" does is give the big players more money to kind-of upgrade their network.. if they feel like it.

It should have been targeted to smaller providers that are local to most rural towns.. or people who want to start their own WISP. I'm sure most places would be excited to actually have broadband.

Hell, I could probably set up half the state with wireless broadband for less than a mil.. and I'd be glad to do it.
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knightmb
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join:2003-12-01
Franklin, TN

Re: What exactly does the "national broadband plan" actually do?

said by Simba7:

I'm not.. Leave it up to the lobbyists to cloud everyone's idea to what's really going on.

So.. Basically what this "national broadband plan" does is give the big players more money to kind-of upgrade their network.. if they feel like it.

It should have been targeted to smaller providers that are local to most rural towns.. or people who want to start their own WISP. I'm sure most places would be excited to actually have broadband.

Hell, I could probably set up half the state with wireless broadband for less than a mil.. and I'd be glad to do it.
Agree 100%

As a matter of fact the "set up half the state with wireless broadband for less than a mil.. and I'd be glad to do it." is exactly where I am right now. Though, I only got half-mil

But either way, the two markets that I'm working to take over are a combination of fierce competition (Comcast, AT&T, Covad, Clearwire, Speakeasy, etc.) and a rural market (no competition except dial-up and satellite) have both turned out to be a bit more expensive than you would think.

The big factor has been lock-ins. I have people that want service, but Comcast/AT&T/whoever has some 1 or 2 year lock in that makes even dirt cheap service too expensive for them to shed before the ETF amount. What I have resorted to doing is offering up free installation & equipment which has slowly bled away customers from Comcast and AT&T. This year has been better as a lot of the ETF are running out and people can afford to switch and still pay a modest $35 installation fee for our time to get them hooked up without too much hassle.

What's been the biggest obstacle? Well, getting the word out and getting an established name. I started back in 2005 and just now in 2010 do people recognize the company name and I have customers who have been with our wireless service for years than can vouch for it's speed and reliability. So image is another factor for those that start their own ISP because if someone comes to you and says "I'm from a brand new XYZ Internet company, do you want service", people are afraid of the hassle they may face if they switch, probably traumatized from years of dealing with out of country tech support or perhaps poor service in their area from other ISP. I can understand that completely, all part of the business though.
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alchav

join:2002-05-17
Palm Desert, CA
said by FBGuy:

Is it like a law?
I'm really not understanding what the FCC's role is in all of this.
Okay for starters, no one even knows what Standard Broadband is, let alone what the Average Person is willing to pay. FCC (Federal Communications Commission) controls Communication in our Country, and if you go to their Web Page you will see that this Plan is for Key Sectors. Like Healthcare, Education, Energy, and Government. It really doesn't talk about the Average Person being connected to the Internet.

Everyone here has ideas on Standard Broadband, and no one wants to pay more than $50/mo or less. Now Standard Broadband should be at least 1Gb, and to achieve this I feel FTTH is the best solution. So what Company wants to spend Billions of Dollars to Wire up the Nation for that price? I don't think the figures work out, and that's why Companies like Verizon are scaling back.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: What exactly does the "national broadband plan" actually do?

said by alchav:

said by FBGuy:

Is it like a law?
I'm really not understanding what the FCC's role is in all of this.
Okay for starters, no one even knows what Standard Broadband is, let alone what the Average Person is willing to pay. FCC (Federal Communications Commission) controls Communication in our Country, and if you go to their Web Page you will see that this Plan is for Key Sectors. Like Healthcare, Education, Energy, and Government. It really doesn't talk about the Average Person being connected to the Internet.

Everyone here has ideas on Standard Broadband, and no one wants to pay more than $50/mo or less. Now Standard Broadband should be at least 1Gb, and to achieve this I feel FTTH is the best solution. So what Company wants to spend Billions of Dollars to Wire up the Nation for that price? I don't think the figures work out, and that's why Companies like Verizon are scaling back.
Which is exactly why infrastructure should be government-built and taxpayer funded.
djcrazy

join:2009-08-05
Minneapolis, MN
Reviews:
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4 edits
said by alchav:

Okay for starters, no one even knows what Standard Broadband is, ......

LOL! I remember way back when the U.S. government was bragging about broadband penetration. I believe the definition of "broadband' was either 144 kbps or 200 kbps! I don't think they ever changed that definition.

said by sonicmerlin:

Which is exactly why infrastructure should be government-built and taxpayer funded.
I thought we as taxpayers have been paying for this for years to the tune of about 200 Billion dollars. The government simply was paying the telcos to do it rather than build it itself. Biggest scam ever!

Simba7
I Void Warranties

join:2003-03-24
Billings, MT

Re: What exactly does the "national broadband plan" actually do?

said by djcrazy:

I believe the definition of "broadband' was either 144 kbps or 200 kbps! I don't think they ever changed that definition.
They changed it to 768kbps. My parents ISP got a massive unexpected speed boost from 256kbps to 768kbps without notice.
said by djcrazy:

I thought we as taxpayers have been paying for this for years to the tune of about 200 Billion dollars. The government simply was paying the telcos to do it rather than build it itself. Biggest scam ever!
I think the small ISPs should get some of these funds. It seems they actually give a damn about their community and want broadband available in their area.
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void_of_Ligh

join:2005-12-27
Nacogdoches, TX

My plan

Block all lawsuits by incumbents that slow down municipalities or private business from offering service. If an area is not served currently treat it like a gold mine claim, or a patent filing. Any company that can provide 95% of the area with broadband that meets certain criteria gets a 10 year monopoly on that area. The restrictions would include minimum speeds, comparable price with other services and not include satellite or any technology that excludes users from any service that is available from dsl or cable. (VOIP, online games, streaming video, ETC) Basically no FAP, enormous ping times or ridiculously low caps. This would give them a guaranteed 10 years to get established and make a profit.
WHT

join:2010-03-26
kudos:3

Re: My plan

said by void_of_Ligh:

Any company that can provide 95% of the area with broadband that meets certain criteria gets a 10 year monopoly on that area.
Very bad idea.....

Any moderately financed wireless company (WISP) could come in, lay claim to the footprint....now you have a ten year monopoly.

Bill Dollar

join:2009-02-20
New York, NY

No "Hope and Change" for a Captured Agency

Great post Karl (I wonder why you didn't excerpt the picture on page 7 of the presentation showing a half-naked woman -- FCC seems to need to get out more).

But it is becoming pretty clear that this FCC is still at its heart, staffed by folks who epitomize the phenomenon of "regulatory capture." People on all sides hated Kevin Martin's guts, but because he took power away from the drones in the bowels of the agency, he was actually able to do a few things that shook up the status quo,

But not Genachowski. He is letting the drones and consultants steer the ship... and they are steering it towards those nice calm waters of the incumbent-friendly status quo. At some point, Genachowski's going to have to decide whether he wants to make lives better for consumers, or if he just wants to sit back, make no waves, and assure himself a future of corporate board appointments and perhaps a nice ambassadorship.

Almost certainly this national plan is his biggest test... we'll know in 4 weeks whether he cares about "Hope and Change" or whether he just likes hobnobbing with CEOs and making speeches about his "data-driven" agency.
deadzoned
Premium
join:2005-04-13
Baton Rouge, LA

Wow.

The FCC truly is useless isn't it? One thing is for sure, this will not do a single thing to help us out but you can bet that this will in some way work out in favor of the broadband providers.

It's been pretty much a given for a long, long time now.

Michael C

join:2009-06-26
Cedar Park, TX

They've had a year....

to brew this turd they're about to drop. What a waste of our money.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: They've had a year....

said by Michael C:

to brew this turd they're about to drop. What a waste of our money.
This is what bothers me the most. Why did it take so long to develop such a meaningless plan? Why the delay?

farmerjow

@charter.com

Here's a thought

If you want a high speed connection don't buy a house in the country problem solved.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

1 edit

Re: Here's a thought

said by farmerjow :

If you want a high speed connection don't buy a house in the country problem solved.
If you want low-cost food out of the city.
axus

join:2001-06-18
Washington, DC
Reviews:
·Verizon Online DSL

Re: Here's a thought

said by sonicmerlin:

said by farmerjow :

If you want a high speed connection don't buy a house in the country problem solved.
If you want low-cost food out of the city.
Haha, I live in the city and have expensive food and no FIOS
fpilot

join:2007-02-24
Camino, CA

Competition can't solve infrastructure deficit

"Once again however, the agency doesn't appear to be focusing on competition..."

That's because telecommunications infrastructure like other utilities and public infrastructure like roads and highways is a natural monopoly. We aren't going to get more advanced telecommunications infrastructure with more infrastructure competition. We need to come up with a more creative solution.

ogamawab

join:2009-03-26
Hinckley, MN

Is 2010 the year of white space?

FCC type-accepted white-space devices by the end of 2010, especially now as the FCC searches for more spectrum for broadband deployments.
what going on what this technology? I know much people on this site don't know much about it. do some research please.
dodgetech

join:2002-02-10
Forest Hill, MD

Broadband

I think everyone just doesn't realize that the big ISPs love no competition in their areas and they will do whatever to try to keep it that way!
mlcarson

join:2001-09-20
Las Cruces, NM

Re: Broadband

City folk see competition as the answer to broadband woes since they already have access to broadband but want cheaper rates and higher speeds. Rural folk have no broadband access and never will if companies aren't forced to provide it.

I find it ironic that they are generally in favor of big government for everything else but not so when it could actually make a difference for rural people.

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