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Structural Bypass - A Simple, Proven Path to "Real Broadband"
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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
Unconference session this evening
Big City Broadband Policyincluding examples from developed
and developing economies
8:30 pm – 9:30 pmSalon G
