This is the future.

conder's picture
Submitted by conder on Sun, 2012-05-13 19:18

Blisteringly fast Internet speeds, more robust connections and a big increase in network capacity at little extra cost, even in rural areas?

http://ec.europa.eu/information_society/digital-agenda/research/optical_...

This is the future. The question remains, how can Europe facilitate the roll out when the incumbents have such a stranglehold on the politicians?

My suggestion would be to start buildout in the rural areas where take up is greater, and seed corn fund the altnets to build to this standard, wherever the needs are known. If an area actively wants some help, help them first. They will engage the community - then as their project succeeds other areas come on board, eventually joining the spider's web together and building a digital country.

What's your suggestion?

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penval's picture
Submitted by penval on Sun, 2012-05-13 20:16

This is an interesting idea Chris. Start from the least served areas then build out.

This has a number of things going for it. Firstly such a programme would qualify for state aid which would be an incentive. Secondly it would establish rural regions not just as niche player but also as key players. Thirdly it would emphasise links to the urban core because providers would have to find commercial wins - city regions would become true city regions.

While not being at the forefront of people's minds this suggestion does also create a potential for a more democratised view of NGA because it creates the opportunity for those rural communites to create their own solutions and then to sell on rather than wait for the opportunity to connect to already established, large scale, centralised, commercial opportunities owned by the big four. This suggestion has sustainablilty build in.

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conder's picture
Submitted by conder on Sun, 2012-05-13 20:48

Thanks Paul, I think so too, but qualifying for state aid and actually getting any are two different matters. The funders don't seem to want to fund rural projects. The BDUK money in the UK seems to be going to the incumbent for cabinets, and there are no cabinets in the final 10%, so it strikes me the main problem is political? what do you think?

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IanGrant52's picture
Submitted by IanGrant52 on Sun, 2012-05-13 21:09

The researchers say "Using emulation technology combined with real-world infrastructure, the tests showed that the network is able to serve between 1,000 and 4,000 users within 20 kilometres of the main ring with symmetric internet connections at speeds of around 300 Mbps. Separately, the researchers also demonstrated that the technology could be used to transmit optical signals up to 100 kilometres from the central office in order to provide up to 250 homes with asymmetrical 10 Gbps downstream and 2.5 Gbps upstream connections."
Great, but they also say it uses existing fibre. That's a big problem right there, which would be resolved by building the network locally and joining the dots, as it were.
I'm not sure how much the existing duct networks would support the ring topology suggested by the researchers. You can bet your bottom dollar the incumbents are not going to play ball willingly.
That said, the lab results look interesting enough for someone to start exploring the commercial models. Perhaps Mrs Kroes can find a few euros for that.

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conder's picture
Submitted by conder on Sun, 2012-05-13 21:12

spot on Ian! if a community could get their hands on a single dark fibre to peering they could build it themselves. The problem is getting it. The transit charges imposed by the incumbents are too great, yet as Peter Cochrane quite rightly says there is fibre everywhere. Bit like the ancient mariner. Water water everywhere but not a drop to drink?

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ferencjacobs's picture
Submitted by ferencjacobs on Mon, 2012-05-14 16:04

I would rather go for the credo 'Broadband for everyone'. It is perfectly possible to deploy networks for inner area's and less served area's together. An economy of scale and scope and sharing costs and benefits would contribute to fulfill this credo for a start.

Looking at the Dutch situation: 2 million citizens are living in area's with non-sufficient connections. Normally the costs of deploying and services would be too expensive for investors. With an honoust non-revenu-driven businessmodel it is possible to:

- get the connection (people, companies)
- get ROI (investors, whether they are public of private)
- get to an open market situation for ISP's, which leads to competitive prices and better quality

The key is act locally, but share knowledge, investments and services with other parts of Europe. Look at the Swedish situation, where the OpenNet model is a good and working way to deploy nextgen networks without 'cherry picking'.

It is about creating no exceptions, everybody needs a connection, then everybody should get it.

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Infostack's picture
Submitted by Infostack on Thu, 2012-05-17 14:09

Chris, your comment "transit charges are too high" is spot on. I like to say there is an ocean of capacity being sold one drop at a time. it is not a technology issue, rather a pricing, software and marketing issue. All investment has to be approached from a horizontal perspective. For instance the cost of 196 bundle fiber running down the street is high if there are 1-2 buyers, but low if there are 100 buyers buying 1-3 strands. 3 strands, btw, supports ANY conceivable business model for the foreseeable future. Elsewhere I will introduce the concept of digitization, 3 prior digital waves, and how they pave the way for a 4th and final wave of digitization. The key in all this is modeling marginal cost under an array of demand contexts. Only then can we efficiently sell the ocean of capacity.

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conder's picture
Submitted by conder on Thu, 2012-05-17 14:24

Another brilliant quote Michael, thanks! 'An ocean of capacity being sold one drop at a time'. Spot on. Telcos are working on the scarcity model when they should be working on the abundance one. Its like rationing the air we breathe. No need to ration it at all.

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Infostack's picture
Submitted by Infostack on Thu, 2012-05-17 15:10

The scarcity model is perpetuated by vertically integrated monopolists who themselves can't fill their infrastructure and require protection to rule via the tyranny of average costprices. Technology (moore's and metcalfe's laws) undoes this stranglehold so the high volume user (marginal) flees the public network creating diseconomies for all. IBM was forced to change and adapt to the Wintel model as the data world of data processing was "digitized" and scaled to the masses (moore and metcalfe). In the process it experienced its best growth ever! All carriers should look at the IBM transition of the late 1980s and early-to-mid 1990s as a guide to where they should be heading in the next 3-7 years. They have already lost the upper layers of the stack (application ecosystems) and will lose the middle and lower layers via software, pricing and marketing mechanisms as the retail cost per bit to underlying economic cost arbitrage is the widest it has been since 1983.

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