Category: Top Broadband

Economists Predict Net Neutrality Cost 700K Jobs and $35 Billion Annually 0

Economists Predict Net Neutrality Cost 700K Jobs and $35 Billion Annually

Obama-era net neutrality rules the Federal Communications Commission could repeal 1 may have cost the U.S. economy 700,000 jobs and $35 billion annually in broadband investment, according to economists at Stanford, Pepperdine, New York University, and elsewhere. The economists on Thursday discussed three separate studies commissioned by the broadband industry examining the FCC’s decision to reclassify broadband service as a public utility, subject to potentially tougher regulation.

Reclassification under Title II of the Communications Act, originally designed to regulate telephone monopolies in the 1930s, has cost the industry tens of billions in investment toward network expansion and hundreds of thousands of jobs since enacted in 2015, according to one study. “Estimates of $35 billion per year in lost investment and, cumulatively, lost jobs nationwide that may have reached 700,000 since the FCC’s reclassification of BIAS Broadband Internet Access Service providers are reasonable,” Christian Dippon of NERA Economic Consulting wrote. The FCC turned to Title II as a way to bring internet service providers (ISPs) under its jurisdiction after previously trying to enforce open internet rules against web traffic blocking, throttling, and paid prioritization that were struck down in court. Though the FCC forbore from many heavy handed Title II regulations like price capping in the 2015 Open Internet order, Dippon — in a study paid for by Comcast — said the FCC can “reverse itself” any time, and that threat is making investors wary. “There will be lower levels of investment and, relatedly, lower levels of innovation, which will lead to lower levels of Internet subscriptions, yielding lower levels of employment at the macroeconomic level,” he predicts.

Dippon arrived at his numbers via an approach used in a previous Title II economic study by Phoenix Center economist George Ford. Ford’s study 2 , cited in Dippon’s, estimates what jobs and investment would have looked like if the FCC never implemented Title II. Dippon further estimates and factors in how many potential new broadband customers could’ve been lost. “The Ford study predicts shortfalls in investment of roughly $35 billion per year,” Dippon says. “A paper by Sosa and Audenrode, using the Bureau of Economic Analysis RIMS II data and other industry data, estimated that each additional dollar of capital spending generated 20.4 jobs for every million dollars invested in capital equipment.” “Consequently, the shortfall of $35 billion per year translates to 714,000 jobs,” including in sectors like construction and others outside the telecom industry, the study estimates.

Separately, in an FCC filing earlier this week 3 , small manufacturers of broadband network products argued Title II was a threat to their businesses. Another study by Stanford economics professor Bruce Owen, paid for by the cable trade group NCTA, cited Ford and another study by Georgetown economics professor Hal Singer. According to Singer 4 , capital expenditures by the twelve largest internet service providers in the U.S.

have fallen by $3.6 billion, a 5.6 percent decline compared to 2014 levels. “Even setting aside the debate over how best to interpret investment data over the past two years, economic literature is replete with empirical examples of the effects of common-carrier-style regulation on the incentives of regulated firms to invest in infrastructure and new services,” Owen’s study reads. It goes on to say broadband investment prior to the rules “stands in stark contrast to the chronic underinvestment in heavily regulated public utility sectors in this country. Prominent examples include water utilities, electricity grids, and railroads.” A third analysis by former economics professors Andres Lerner of USC and Janusz Ordover of NYU made similar claims.

They argue portions of the net neutrality rules beyond Title II, like the “internet conduct standard,” let the FCC “regulate any practice that it considers “unreasonable.” ‘These risks are likely to have the effect of reducing investments and hampering innovation in the long term, in an industry where continual investments and innovation are key to providing services that benefit consumers,” their study reads. The economists say investments in network expansion, which typically require large “initial sunk and irreversible costs” and produce benefits only in the long-term are especially sensitive to those risks. So are new services and business models like zero-rating, targeted by the outgoing Obama administration 5 with the help of the internet conduct standard late last year.

Groups in favor of keeping the rules on the books, like the Internet Association, say investment has gone in the opposite direction. Using SEC and other data 6 directly from ISPs or used by ISP trade groups, the group shows investment going up 5.3 percent, or $7.3 billion, from 2015 to 2016. That’s higher than the period from 2014 to 2015 (5.1 percent or $4.7 billion), when the FCC was still debating the rules.

Follow Giuseppe on Twitter 7 Subscribe for the Latest From InsideSources Every Morning 8 References ^ could repeal (www.insidesources.com) ^ Ford’s study (www.insidesources.com) ^ FCC filing earlier this week (www.broadcastingcable.com) ^ According to Singer (haljsinger.wordpress.com) ^ targeted by the outgoing Obama administration (www.insidesources.com) ^ SEC and other data (internetassociation.org) ^ Follow Giuseppe on Twitter (twitter.com) ^ Subscribe for the Latest From InsideSources Every Morning (www.insidesources.com)

Huawei supplies MDU broadband technology for i3 Broadband FTTH deployment 0

Huawei supplies MDU broadband technology for i3 Broadband FTTH deployment

Huawei says it will supply elements of its multiple dwelling unit (MDU) technology portfolio to i3 Broadband for the service provider’s recently announced fiber-to-the-home (FTTH) deployment in Champaign-Urbana, IL (see ” I3 Broadband expanding fiber-optic network in Champaign-Urbana, IL 1 “). The systems will help i3 Broadband address MDU broadband demands in light of what Huawei describes as an increase in construction of multifamily residential buildings in the area. “The goal of i3 Broadband is to reduce cost, create value and continue to offer high-quality internet, HD TV and voice services to residential and business customers,” said Dan Kennedy, i3 Broadband COO. “As i3 Broadband continues to expand its all fiber, ultra-high speed network to more locations within the communities we serve, i3 Broadband is excited to be using Huawei MDU products, as their next-generation solutions will allow i3 Broadband to quickly acquire new MDU customers and speed our market delivery.” Whitaker added that i3 broadband hopes to collaborate with home owner associations in the area to deliver FTTH 2 based internet, HDTV, and phone services. Huawei didn’t specify which systems it will supply to i3, but noted that its MDU portfolio includes GPON, NG-PON and D-CCAP technologies that can support gigabit services for MDU broadband.

The fact that its MDU line offers easy, comparatively low-cost upgrade capabilities proved telling in winning the supply contract, Huawei added. Native Advertisement “The goal of i3 Broadband is to reduce cost, create value, and continue to offer high-quality internet, HDTV, and voice services to residential and business customers,” said Dan Kennedy, COO of i3 Broadband. “As i3 Broadband continues to expand its all-fiber, ultra-high speed network to more locations within the communities we serve, i3 Broadband is excited to be using Huawei MDU products, as their next-generation solutions will allow i3 Broadband to quickly acquire new MDU customers and speed our market delivery.” For related articles, visit the FTTx Topic Center 3 .

For more information on FTTx systems and suppliers, visit the Lightwave Buyer’s Guide 4 .

References ^ I3 Broadband expanding fiber-optic network in Champaign-Urbana, IL (www.lightwaveonline.com) ^ FTTH (www.lightwaveonline.com) ^ FTTx Topic Center (www.lightwaveonline.com) ^ visit the Lightwave Buyer’s Guide (www.lightwaveonline.com)

ACT Fibernet to invest Rs700cr to expand wired broadband infrastructure 0

ACT Fibernet to invest Rs700cr to expand wired broadband infrastructure

NEW DELHI: Atria Convergence Technologies , which offers wired broadband services under the ‘ACT Fibernet’ brand, today said it will invest up to Rs 700 crore this year to expand its infrastructure and presence across the country. The Bengaluru-based firm, which is present in 11 Indian cities, is looking to enter 3-4 new cities and expand presence in regions like Delhi-NCR. “We will invest Rs 600-700 crore this year to expand our infrastructure. It is not about just setting up base in a city…

the investment would include setting up infrastructure and maintenance,” ACT Chief Executive Officer Bala Malladi told PTI. This will be funded through internal accruals and debt, he added. The company, which commenced operations in Delhi a few months ago, has significant scale in cities like Bengaluru, Hyderabad and Chennai.

It clocked a turnover of Rs 1,300 crore at the end of March 2017. At the end of May 2017, it had 1.2 million subscribers. The company had started its operations in 2000 as a cable TV service provider.

Backed by investments from private equity firms True North and TA Associates, the company has now become India’s third largest wired broadband services firm after BSNL 3 (9.80 million subscribers) and Bharti Airtel 4 (2.09 million). The total number of wired broadband subscribers in the country stood at 18.23 million at the end of May, 2017. “We are looking at strengthening our presence in the Delhi market and will also expanding to Gurugram as there are significant opportunities in these geographies,” he said, adding that average data consumption on its network in Delhi is already higher compared to other cities. Malladi added that ACT will spend Rs 100 crore over the next 24 months to expand its presence in the Delhi region.

It has launched a new Rs 999 plan, under which users will get 250 GB data transfer at 75 Mbps speed. The Rs 1,499 plan will offer 500 GB data transfer at 100 Mbps. Asked how entry of players like Reliance Jio, which offer affordable data plans, had affected the company, Malladi stressed that there has been no impact. “Wired broadband users typically have high consumption and they want really high data speeds which wired networks can provide.

The lowest speed we offer is 20 Mbps.

Our focus is on offering reliable, efficient services at affordable prices,” he added. 1 2 References ^ Convergence Technologies (timesofindia.indiatimes.com) ^ broadband (timesofindia.indiatimes.com) ^ BSNL (timesofindia.indiatimes.com) ^ Bharti Airtel (economictimes.indiatimes.com)