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brookseven
brookseven
7/3/2014 | 10:24:47 AM
Re: Urban Renewal
Costs depend on the site and style of deployment.  It is impossible to create a single number, especially given that Unions are involved in some situations.

I am telling you (not giving you opinion) about what is being spoken about here in terms of regulation.  You can have any opinion that you want, but it is rural independent carriers that are subsidized.  You said in your first post that this was about urban deployment.  High Cost Loops is straight USAC.  Read the following link:

http://usac.org/hc/legacy/telecom-carriers/step01/hcl.aspx

seven

 
jabailo
jabailo
7/2/2014 | 11:24:34 PM
Re: Urban Renewal
You raise good arguments, but they are unquantified (like mine).

What exactly is the cost (per meter) of maintaining a fiber optical cable?

What is the cost of an LTE antenna/site designed for broadband access?

As I understand it, yes, you can put more users per cable/antenna -- but that doesn't mean each will get more speed and use.  These resources are like party lines.  Cramming the most per unit resource is the idea.

However, at some point, if the costs become so cheap and so easy to maintain, then it behooves them to put it everywhere.

 
brookseven
brookseven
7/2/2014 | 10:34:33 PM
Re: Urban Renewal
jabailo,

Then you clearly need to rethink a whole lot of things.

The longest loop that I had to deal with was 80 miles and served a single home.  The line had to be installed by the Carrier of Last Resort for free.  This is an extreme illustration to help you see what you are missing:

- The number of homes served per mile of construction is much lower in rural America.  You can run a multi-fiber cable and support 1,000s of homes from one cable run through the manhole covered installation.

- The support costs to manage those remote installations are very high.  Cable breaks and equipment problems mean long trips to fix things for a few subscribers.

- Imagine the cost of installing an LTE antenna for a single home.  Before you scoff, the least dense phone company that I was aware of was Valley Telephone which was 7500 subs in 6500 square miles.  

That is why those companies get a huge amount of support for their networks.  Which is the whole point about unsubsidized companies.  AT&T and Verizon have the vast bulk of their connections in what is considered to be low cost areas so are not subsidized.

This is not speculation by the way.  It is the way the regulatory framework is constructed.  The 3rd bit that you should not is the "Price Cap" verbage in the original article.  There are still some small Incumbent LECs that are "Rate of Return" carriers.

seven

 

 
jabailo
jabailo
7/2/2014 | 8:16:00 PM
Re: Urban Renewal
Let me suggest another form of "competition".

Big cities are political and econonmic entities.

They have expensive real estate, they have high paying jobs, and they sell themselves by presumably offering something that you cannot get in the suburbs or rural areas.

Fast forward to the 21st century.

Now I can get 1Gig of fiber on my 2 acre summer home in the mountains, while my co-workers are sweating it out in the heat, and not able to get a halfway decent signal because of the reflections of the apartments.

Sounds like someone might get a little worried about their...investments.

 
jabailo
jabailo
7/2/2014 | 8:13:39 PM
Re: Urban Renewal
It would seem to me that stringing a single fiber cable along the telephone poles along a rural route or sticking a single Wimax or LTE antenna on a farm plain would be a lot less costly than having to go run the same cable by going down into manholes or scotch taping a bunch of plane "reflectors" on the side of every building.

But that's just how I think.

 
kq4ym
kq4ym
7/2/2014 | 7:58:20 PM
Re: Urban Renewal
It could be argued by some that it should be ok to "step on the toes" of the big guys. In order to bring competition and presumably better service at reasonable cost to the rural areas, the government might just allow that competition that indeed would hurt the profits of the existing guys a little bit.
brookseven
brookseven
7/2/2014 | 7:37:38 PM
Re: Urban Renewal
Note the commentary in the 2nd paragraph particularly the words "high cost".  Read that as rural.  

Now read "unsubsidized" in the first paragraph as Verizon, AT&T and some of Centurylink. 

That should help your comprehension immensely.

 

seven
jabailo
jabailo
7/2/2014 | 12:11:40 PM
Urban Renewal
This sounds like the urban version of the rural broadband acts that were passed.  It's ironic because some of these rural areas, where there aren't even towns, now are getting Google speed optical fiber, and higher than average cable connectivity, thanks to the Government's push.

Meanwhile, there are areas in "high tech" cities like Seattle that get speeds barely considered broadband any more!    Over time it seems like any and all wired connectivity will become optical fiber.  And phone service will end up all being 5G.   But someone has to turn the first shovel...

 


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