broadband conference - august 2008

8/6/2019 Broadband Conference - August 2008

1/23

Connecting Rural Indiana 2008Policy-Programs-Progress

Indiana Office of Utility Consumer Counselor

David Stippler

Indiana Utility Consumer Counselor

317-233-3232 [email protected]


2/23


Broadband deployment helps build economic

development and business growth in Indiana, especially

in our small cities and towns.

A strong telecommunications infrastructure in our statewill keep us competitive in todays global marketplace.

Becky Skillman

Lieutenant Governor, State of Indiana


3/23


4/23


- Technology allows consumers/small business to connect

through coaxial cable modems

Typical speeds from 512 KBps to 1.5 MBps;

Biggest problem today is fluctuating speed the more usage, theslower the connection speed for each customer. Companies are

switching from coax and upgrading to all-digital networks FTTH and

Next Generation Network Architecture (NGNA) to offer full packages

of service in response to competition and consumer demand

-Availability throughout state fairly ubiquitous, particularly inthe east central and northeast parts of Indiana

Cable Industry Evolving


5/23


- Digital Subscriber Line -- According to INdianaINterconnect, DSL is available in Indianas populated areas Limited to consumers/business within @18,000 ft of the Central Office

(CO). Past 12,000ft line quality and other factors may inhibit speed.

Next generation DSL offers 25Mbps speeds while very high-speedasymmetrical systems can achieve 100 Mbps within a few hundredfeet of the CO.

-AT&T, Verizon, and Embarq deployed extensive DSL

networks in rural areas as a result of pre-HB1279

Alternative Regulatory Plans under IURC jurisdiction.

DSL Near Term Future Steady


6/23


- Continues to be a panacea for rural broadband connectivity

Operating in the licensed and unlicensed spectrums

Capable of speeds from 3 MBps to 11 MBps

Licensed wireless providers can reach 82% of U.S. population andalmost 100% of Indiana population, offering viable competition to

unlicensed providers.

- Unlicensed provider deployments continue and new

providers continue to appear, especially in southern

Indiana.

- Wi-Fi hotspots and muni-networks on the upswing.

Wireless BroadbandContinues Growth and Evolution


7/23


- Broadband Over Powerline

Deployment continues but is trending more to utility usage to improve

service system monitoring, deployment of smart grid and advance

metering. Speeds on consumer internet access systems remain symmetrical

and average around the 2 Mbps

BPL Technology Evolving


8/23


- Satellite Broadband

Satellite access still an option for other providers do not offer service.

Although continuing to evolve, still does not meet FCC definition of

advanced service. Latency will always remain an issue

View of southern hemisphere also required

New Ka-band systems promise improved coverage and potentially

higher upstream/downstream speeds.

Satellite systems evolving to provide last-mile connectivity to mobileplatforms airplanes, ships, vehicles.

Satellite Broadband Remains An Option


9/23


- Fiber-optic

The absolute fastest conduit for data transfer

Speeds are unlimited

Fiber rings around major metropolitan areas, along I-69, I-65, and I-70; fiberalso connects states major universities.

Dramatic increases in deployment providers responding to

consumer demands for package voice/video communications, full

spectrum entertainment, high-speed internet access, security, and

new technology.

RBOCs slow to deploy outside urban and suburban areas.

RLECs are deploying within historical operating territories and absorbing

adjacent territory, especially since passage of HB-1279.

Fiber-Optic Experiencing Explosive Growth


10/23


- Highly responsive to consumer demands they hear what

consumers want and are providing it.

Sensitive to generational differences generations younger than Baby

Boomers want mobility and ability to stay connected Companies changing themselves physically and operationally to meet

the generational demand

Indiana Companies Changing How They Do Business


11/23


- Boomers (1945-1964)- They want technology and are willing to pay for it

- Need to feel young

- Tech savvy but need more hand holding

- Xers (1965-1982)- EXTREME child involvement -- make purchasing decisions based on

their kids

- Millennials/Gen Y (1982-2004 / 2005 - )- They live online - word of mouth/social networking is all important

- Influence the majority of purchasing decisions - $200 billion per year

- Will probably never have landline phone service

- They dont care much about quality or service

Indiana Companies Changing How They Do Business


12/23


Consumer demands, global economic

requirements and the evolution of technologypoints to one conclusion:

Indiana and the nation is shifting to

a Fiber-Optic networkwith a robust wireless network overlay

WhereWillWe End Up?


13/23


-Ability to evolve almost instantaneously with a capability

limited only by transmission equipment.

Only technology to offer full range of services: communications,

internet access, entertainment, security, energy management, etc.

Providers see the future deploying rapidly at local level while

backbone providers remain aggressive at the state level.

- Fiber-optic technology makes Indiana globally competitive.

- Fiber fundamentally changes the landscape

Once deployed by a provider, overlaying competitive networks notcompetitively viable

Quickly degrades value of copper and coaxial networks they cant

match capability

Why Fiber-Optic?


14/23


- First and foremost Consumers. They want to stay

connected while on the move.

Generational While Baby Boomers want the capability, younger

generations DEMAND it.

Economic in todays evolving environment, business has to stay

connected while on the move to remain competitive.

Security and Emergency Response Technology allows responders

to get up-to-date information while responding.

Kosciusko County 911 Dispatch leading the way.

- Cell phone providers quickly becoming the leader in

nationwide networks 3G, 4G

Voice, data, entertainment access already in place

Cards enable laptops and PCs to access networks

Why AWireless Overlay?


15/23


- Indiana has penetration in over 90% of all zip codes by

some type of high-speed access provider.

OUCC database increased to approximately 250 service providers

25% increase since 2007.-Almost 100% coverage with cellular 3G or comparable

technologies.

Viable competition to unlicensed wireless provision

- Unlicensed wireless broadband provider coveragecontinues to expand, especially in southern part of the

state.

How Does Indiana Look Today?


16/23


- Existing copper network will remain viable in rural areas for

the short term.

- Rural LECs deploying and expanding fiber networks

absorbing new territory as they expand. Big three losses will continue & losses likely to be permanent.

- DSL deployment will slow down.

Low hanging fruit is almost gone without significant technology

advance, 18K limitation makes deployment in low population densityareas not viable for business investment considerations.

How Does Indiana Look Today?


17/23


- Illinois, Kentucky, Ohio and Michigan have agencies or

organizations directly or indirectly associated with state

government examining broadband development.

- Indiana no dedicated authority or agency. Hands-off approach within guidelines of HB1279 to allow market

forces to work.

Not enough data to support conclusion yet, but Indiana seems to be

moving much more rapidly deploying globally competitive high-speed

access networks.

How Does IndianaCompare To The Region?


18/23


- Reports do not provide accurate assessments at the state

level

Generally rely on inaccurate and incomplete FCC data.

Few offer any analysis of what providers in each state actually offer. No real understanding of mom and pop shops provision.

Feed off each other.

- International comparisons between U.S. and other countries

do not account for cultural, generational, or geographicfactors that have dramatic effects on deployment strategies

Iceland, Japan, Korea

SoWhy Do The Experts and Reports Say Different?


19/23


- Funding Potential revenue deploying to low-density rural areas with fiber, cable,

or DSL circuits is usually not sufficient to off-set costs to deploy the

technology and provision service. No state or federal Universal Service Fund or USF-type programs

available yet to offset costs of provision to rural areas like we have for

telephone service

Currently, only viable options for consumers living in deep rural areas

continue to be wireless and satellite broadband service

What Hurdles Still Exist?


20/23


- Education

If consumers dont understand what broadband is, they wont want it.

Information Resource weather, news, the new encyclopedia

Social Resource getting connected staying connected

Educational Resource teaching, learning

Economic Resource shopping, business, financial management

Only true for the older generations!!

Although we enjoy the technology, we grew up with the Eight-Track Player

Younger generations want the technology at younger ages.

Younger generations dont consider it a luxury they want the technology

to stay connected to each other

What Hurdles Still Exist?


21/23


- Schools have to remain the first level

Teach/expose students to technology at an earlier age

Require it for informational / educational purposes daily

- Government continues the need Offer services online - be responsive to citizens

Promote broadband education

Teach independent business operators (small business owners, farmers,etc.) to become more effective and efficient using broadband technology

Promote global marketing and expansion

- Service Providers already marketing and changing

Educate older consumers why they should have it

Working to stay on top of what younger generations want.

Education Must Be At All Levels


22/23


- Information Availability Once consumers want the technology, who can they contact?

Some online search site available Not complete; inaccurate information

Many not updated regularly Small or start-up providers rarely have enough funding to maintain

operations and do extensive marketing Valuable resource in areas not served by larger well-known companies

Typically offer good packages, reasonable rates, and excellent service quality

Until 2007, no single source existed in Indiana to get consumers

connected to providers. OUCC developed online search tool to help consumers get connected Designed to get consumers and companies connected; not designed to

detail specific deployment of specific services Consumers can get connected to small start-up providers

Any Other Hurdles?


23/23


QUESTIONS?

broadband conference - august 2008

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