an eccentric perspective on broadband regulation marjory s. blumenthal associate provost, academic...

An Eccentric Perspective on Broadband Regulation

Marjory S. Blumenthal

Associate Provost, Academic

Georgetown University

©Marjory S. Blumenthal

Basics: Means v. Ends• BB as end: more BB, to more people

– (Cf. BB as means to other ends?)

• Policy as means: starting point, progress– Money, not tech, gates broadband: who spends, reaps?– Multiple biz models possible (and evident)– Tech diversity: no horse-race, no winner

• Policy > regulatory– Telecom regulatory policy is confusing...

• Endless litigation & proceedings obscure, distract– Voice history distorts

• Tension between motivating inv & controlling conduct• Proliferating stakeholders w/different POVs


Picturing Broadband (Network Architecture)• Generic model of a broadband access network

• system architecture common across technology alternatives

• important differences in cost-performance and business models

• even the drawing can be political…

INTERNETINTERNET

Web Servers, etc.

Access Router/Headend/Cache

Consumer Equipment(wired & wireless)

SubscriberInterface Access

Medium(copper, coax,fiber, wireless)

Multiplexedbroadband pipew/ aggregated data

IP packets

may be sharedor switched

IP packets

technology-specificpart of the system


Other Policy Flavors Affect BB• IPR: if audio and video files are key drivers but the law reins

in...• Cf. Open Access—who controls what content how much• Cf. privacy, spam—other policies on information

• “Public safety”—critical infrastructure interventions?

• International: the ITU, lots of gov’ts watching

• Antitrust

• Public investment—absolute or conditions

• Research

=> Broader view of “telecom regulatory policy”?


Concentration: Forshadowing?Eli Noam TPRC 03 HHIs


Demand Still Limited: Fast Growth on Small Base Gives…


Policy Principles• Aim for more facilities-based providers

– Long-term preference over forced unbundling– Cf. ensuring adequate spectrum

• Accept that facilities-based competition will not always happen– Plan now for how to deal with this– Worst case: post-investment competitive failure

• Focus regulatory expectations on the service rather than the tech – Preference for logical over physical unbundling (CSTB 02)


Two Definitions*• Local access link performance should not be the limiting

factor on a user’s experience in running today’s applications– Today we run yesterday’s apps faster– What registers as an improvement? When DSL fail test?

• Broadband access should have high enough perfor-mance—and wide enough penetration of that perfor-mance—to encourage the development of new apps.– The clichéed chicken and egg

• Contrast to hard numbers, focus on speed—multi-D

* Broadband: Bringing Home the Bits (CSTB 2002)


Location, Location, Location—State/Local Key

• National averages don’t reveal enough

• Broadband policy has been federal . . . but local variation and benefits call for bigger local roles

Home in on local area differences:• Type 0—no provider... (but satellite ubiquitous)• Type 1—one terrestrial facilities-based provider • Type 2—two terrestrial facilities-based providers• Type 3—one or more facilities-based providers

install new infrastructure to compete with the incumbents


Locals Can Lead• Public initiatives can foster market entry

– Lower cost and/or risk; don’t chill competition

– Conduits, condominiums (avoid industry capture)

• Familiar tools can be used, esp. in high-cost and under-served areas– Relax local rules? Financial incentives?

– Not urging proliferation of conflicting local rules

• Increase local capacity– Planning grants? Cost-sharing (e.g., field trials)?

– Clearinghouse of information and practices?

• It’s happening (see, e.g., Gillett, et al., 03)


Transcend/Combat Assumptions• R&D on access techs—esp. needs of nonincumbents and areas

lacking stable private investment– Architectural options and other means of cost-reduction in fiber access nets– Enhanced wireless capabilities– Technologies that foster the accommodation of multiple competitive service providers over

intentionally open facilities—techs for openness– Quality of service for homogeneous and heterogeneous access scenarios

• Research on economic, social, and regulatory factors– Alternative business models and better understanding of consumer behavior – Economic and regulatory barriers to non-incumbent facilities providers

• How to regulate/manage type 1 areas and avoid shifts to the left

– Explore international comparisons

• R&D on alternative content and services


For More Information...

Broadband: Bringing Home the Bits

See www.cstb.org

*and*

Assorted papers from TPRC

See tprc.org

an eccentric perspective on broadband regulation marjory s. blumenthal associate provost, academic...

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