brough turner's presentation at ecomm 2009

Structural BypassStructural BypassA simple, proven path to “Real Broadband”A simple, proven path to “Real Broadband”

Brough TurnerFounder & CTOAshtonbrooke

Real Broadband – 100/100 MbpsReal Broadband – 100/100 Mbps

Amsterdam $127

Real Broadband – 100/100 MbpsReal Broadband – 100/100 Mbps

Tokyo $ 61

Amsterdam $127

Real Broadband – 100/100 MbpsReal Broadband – 100/100 Mbps

Hong Kong $ 35

Tokyo $ 61

Amsterdam $127

Real Broadband – 100/100 MbpsReal Broadband – 100/100 Mbps

Seoul $ 24

Hong Kong $ 35

Tokyo $ 61

Amsterdam $127

http://www.flickr.com/photos/neaners/8457858

Real Broadband – 100/100 MbpsReal Broadband – 100/100 Mbps

Stockholm $ 11

Seoul $ 24

Hong Kong $ 35

Tokyo $ 61

Amsterdam $127

Pictures courtesy Lars Hedberg, The Swedish Urban Network Association

Real Broadband – 100/100 MbpsReal Broadband – 100/100 Mbps

Stockholm $ 11

Seoul $ 24

Hong Kong $ 35

Tokyo $ 6

Amsterdam $127

New York City N/A

Open access at what layer?Open access at what layer?

Stockholm,> 300 ISPs

Tokyo,11 ISPs

So we argue net neutralitySo we argue net neutrality

US vertically integrated duopolists

Stockholm,> 300 ISPs

Tokyo,11 ISPs

Layer 0

Layer 2

Layer 3

Local right-of-way bottleneckLocal right-of-way bottleneck

Right of way usage issuesRight of way usage issues

Swedish Urban Network Association

Facilities competition a jokeFacilities competition a joke

Video/TV

Internet

Phone

Fiber network

Marginal costof services

CostsRevenues

Triple play can’t fund players with < 20% share

Useful life of BB elementsUseful life of BB elements

Moore’s law dominates

Building a Broadband CityBuilding a Broadband City

Structural Separation

Building a Broadband CityBuilding a Broadband City

Public service; regulated monopoly; condo association

Open access to dark fiber

Politically “impossible”Politically “impossible”

One precedent –

US Bell System 1984

• Multi-decade saga• 1913 Kingsbury commitment

• Telecom act of 1934 regulates telecom

• 1949 antitrust suit 1956 consent degree

• 1969 FCC Carterphone decision

• 1960s, 70s – technology advances lead corporations to demand increased communications flexibility

• 1970s – Bell System jealous of computer industry

• 1974 illegal practices lawsuit 1982 consent decree

Structural BypassStructural Bypass

• Dark fiber only. No services!

• We’re not going to compete with you Mr. Incumbent

• Anyone can lease our fiber, including you Mr. Incumbent

• This is the model that worked in Stockholm

Stokab launched 1994Stokab launched 1994

• 3 years of politics ’91-’94

• Corporation owned by Stockholm government

• Offers open infrastructure for everyone

• Reduce digging in streets

• Stimulate economy with lowest infrastructure cost

• Breakeven for long term

Income and earnings trend (tkr)

249,277

176,495

137,323

88,409

42,37532,912

12,879

325,510

52,44026,9066,642

-11,886-32,371-24,586-385

60,160

-100,000

-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

1994 1995 1996 1997 1998 1999 2000 2001

Stokab coverage todayStokab coverage today

5000 km of routes, serving 29 towns1,200,000 km of fibers300 cross connect sites6000 antenna sites

Fiber to every blockFiber to every block< 2001

Take AwaysTake Aways

• Net Neutrality is the wrong fight

• Facilities based competition is no better

• Structural separation at dark fiber layer: most desirable, but politically impossible

• Structural Bypass: works and is feasible !

Thank you!Thank you!

Brough TurnerFounder & CTO

Ashtonbrooke .

http://blogs.dialogic.com

broughturner@gmail.com

rbt@broughturner.com

Unconference session this evening

Big City Broadband Policyincluding examples from developed

and developing economies

8:30 pm – 9:30 pmSalon G