Vint Cerf, Google, Municipal Broadband & Lafayette

(If you're only perusing this for the "& Lafayette" skip the windup and run to the bottom.)

Vint Cerf, internet pioneer and VP at Google, recently voiced support of high-speed municipal fiber-optic networks.

Some operators contend that municipal networks create competition between the government and private companies. "That's nonsense," Cerf said.

Indeed; Cerf links network neutrality—a position he has pushed as Google's "Internet Evangelist"— to control of the shared resource of the internet:

Operators may simply not want to invest in their networks to bring higher bandwidth to users, he said. "That comes back to the municipal argument. Citizens that want the capacity should be able to decide among themselves to put the resources in place to get that kind of capacity," he said....

"I still think it's not a bad idea to have legislation that says don't discriminate unfairly simply because you happen to have control over this shared resource," he said.

Who owns the network is indeed the crucial question. The current owners won't agree with Cerf that the network is "shared;" they are certain it is theirs. With public ownership the shared nature of the net is unambiguous and net neutrality is simply not a contentious issue—owner-operators are free to do what is technically the most advantageous to the community.

While the endorsement of a major name in the networking world is significant in and of itself these remarks in Spokane come at an interesting juncture locally and nationally.

Locally Seattle is considering following its neighbor Tacoma and building a municipal fiber-optic network. Such a network would be the largest in the US if built. The discussion in Seattle has see-sawed between politicians wanting to "invite" private investment and tech advocate who advocate a municipally-owned system.

Nationally Google has become one of the staunchest opponents of the expansion of the vertically integrated business model of carriers like Cox, Comcast, and cellular owners who already have an exclusive lock on much of the content carried over their network and owners like AT&T who would like to emulate that model.

Google's main thrust in this battle has been to try and force open the wireless marketplace. It recently upped the ante by bidding in the recent 700 megahertz FCC auction thereby making sure that at least some of that bandwidth would be more open than any cellular airwaves have been to date. It has put considerable resources into the "Android" open cell phone architecture in the attempt to pressure cellular carriers to reshape their network policy so that users can use their cell phones to access data and content as freely as they use their laptops.

But perhaps most significantly Google has followed the down-home maxim: "Money talks where BS walks" with a half billion dollar investment in the recent tech alternative "Clearwire" consortium of Sprint, Clearwire, Comcast, Time Warner, Intel, and Google. The group hopes to put together a national WiMax network using Sprint and Clearwire's spectrum to force an open regime in the wireless mobility arena. That's a lot of money to spend--especially when you are allying yourself with the cable companies whose networks currently represent the acme of closed networks on the wireline side.

This story is one of an alliance of convenience and necessity. The three-sided alliance benefits all. The telecom companies are strapped for cash to exploit their spectrum; the tech companies desperately need open networks to keep their business models running at full tilt, and the cable companies need a wireless play to offset the phone networks ownership of the cellular marketplace. The players need each other's money, spectrum, and credibility to create a markeplace suited to their strengths.

The tech giants are spending billions to establish an alternate vision of how the world could be—in part by pulling Sprint and Clearwire into their internet-centric orbit. Intel wants space for new technologies...and most immediately for the WiMax chips it is currently fabricating and which the teleco's reasonably see as a threat to their business model. Sprint and Clearwire are looking exit a loosing battle against the Verizon/AT&T closed cellular behemoth. If you are losing, change the game: the internet-open network model looks like a good bet for the also rans of cellular. Google has built its business on having unfettered access to individual customers. Verizon/AT&T is very clear about wanting to move the sort of control they have over applications in the cellular part of their business to their landline-based internet offerings. The needs and benefits for the players are easy enough to see.

One of the "needs" of the spectrum owners is one that Sprint recently came up against hard: the need for substantial backhaul from its local cell sites. Not consistently having enough bandwidth to push modern services out over its newly constructed Xohm WiMax network was the central reason Sprint delayed its nation-wide launch. Allying with the big cable companies, who have more capable last-mile networks deployed into every nook and crany of the densely populated regions that are the first targets of Sprint and Clearwire's now merged networks is a huge help in actually getting that network properly launched. Which brings us to the implications for Lafayette.

& Lafayette...
You'll notice that none of the cable partners has a presence in Lafayette. That is because Cox, in a smart and aggressive move, is going it after the wireless arena without the compromise implied by partners. It no longer needs Sprint or Clearwire or any other carrier's spectrum and has not joined the coalition. (It was a member in an earlier incarnation.) That is because Cox recently invested heavily in the aforementioned 700 mhz wireless auction and won good spectrum in an arch from Gonzalez through Baton Rouge and across the Atchafalya to Lafayette. That roughly corresponds to the unified Baton Rouge-Acadiana market that Cox now operates. You can be confident that Cox is planning a wireless rollout of its own to compete with AT&T — and differentiate itself from Eatel & Lafayette's more capable fiber to the home landline systems. The new spectrum is still being freed up from its previous owners but 700 mhz offerings can be looked for in 2010. The time for LUS to act to secure its own wireless offering ahead of the rollout of Cox's new network and AT&T's 4th generation services is right now. First to market is worth a lot. As is maintaining a set of services that matches and outclasses the opposition. The incremental cost of adding a WiFi network capable of being upgraded to 802.11n-k-r-y is truly minimal, perhaps 5% on top of the fiber investment. LUS is aware of the potential and already has a test of 70 WiFi nodes running.

Because the Clearwire coalition will have no local cable company to rely on—and with whole coalition organized in opposition to the likes of AT&T—the new group will need to find a lot of high quality backhaul in Lafayette and the parish. LUS' fiber network should be the obvious candidate. If LUS is really smart they'll seek a more extensive deal after attracting the coalition's attention with something it needs.

But Lafayette amounts to only a tiny side-deal in this battle of giants. Why in the world should the coalition go out of its way to cut a special deal in Lafayette? Maybe they won't. But they should. Because it is not about Lafayette: it is about municipal broadband and the consumers —citizens— owning the crucial last mile and "next mile" infrastructure. And visibly encouraging Lafayette is a cheap and effective way to encourage that sort of ownership to spread.

Spend a billion or two on Communities
The Tech folks and Sprint/Clearwire surely understand that their alliance with each other is one of genuine parallel interests but that their alliance with the cable companies is one where only their short-term interests are aligned. People as smart as Vint Cerf understand that in the long run the interests of cable companies lies is in extending their tight control of content to the internet and the interests of tech companies lies in continuing the open internet and letting the destruction of the broadcast/cable model proceed apace. In contrast communities could be long-term allies with whom their true interests are permanently aligned. Encouraging communities to build and own their own broadband infrastructure is something that both Google and Intel have both visibly supported. They've committed to spending billions on an infrastructure that fortifies them against the telcos' intentions but leaves them dependent upon cable companies which share the same long-term goals. It'd be wise for them to lay a foundation for moving away from the cable companies when the inevitable day comes that their divergent interests become practical obstacles.

So what could these companies do to help out a community? Let's make one of those lists bloggers are famous for:

• Sprint could partner with the muni network and provide a cellular tie-in for the muni's bundle that would help it compete against quadruple play offerings from the telephone and cable companies.
• Clearwire could offer cut-rate wireless locally (though the municipality that owns fiber should really do this itself).
• Intel could offer money and technical support.
• Google has by far the most to offer:
• An on-network google cache that would lower costs and speed up the internet for local users
• Google email for the community--ideally with community addresses rather than generic google ones
• Google apps for the community--ideally run of the local server for unmatchable speeds; an amazing way to help bridge the digital divide by bringing down costs
• YouTube in HD....
• Use the partner communities as a testbed -- Lafayette with its 100 megs of intranet bandwidth would make a unique playground for trying out the sorts of ideas that Google is famous for.

Spending a little money...and even more, spending some prestige and thought on supporting municipal efforts could do as much to sustain and create the internet Vint Cerf and other wise tech types want to see as any other partnership they might undertake.

Worth pondering.

Smart Power, Networking, and Lafayette

(Note: Lafayette is about to get its introduction to this topic when Terry Huval addresses the League of Women Voters tonight. Invited to talk about Lafayette's new network he says he wants to bring up ways to use that network to cut the community's electrical costs. Lafayette may be the place where the electrical and the communications networks first merge in ways that preview what will happen more widely as soon as the current, ongoing energy crisis echoes through to electrical market place.)
The electric service of the future.)

Want to get a sense of what that is about? Try the AP article that appeared in Sunday's Advocate that explored smart electricity.
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Lafayette's POV
It's all about peak demand. Or: It's all about saving money.

Your choice of focus depends on your Point Of View.

Network Engineers will focus on the first, peak demand. It's a constant source of irritation for neat, tidy, frugal, engineer types that they have to add hugely to the expense of their networks in order to accommodate a few days in August when all the AC units are chugging on high. The customer POV, on the other hand, focuses on saving money. With the rising price of energy this motivation looms larger every day.

And of course there are those pesky, forethoughtful sorts who claim that we can't keep on doing what we're doing to the environment and simply must burn less fossil fuels if we don't all want to sink into the Gulf faster than is necessary.

All these groups can hope that Lafayette's new community network will help lower peak demand and cut costs and usage.

Lafayette is positioned on the cutting edge of all these issues: unlike most communities we own and produce our own electricity. We are about to own our own advanced telecommunications system with fast fiber and, eventually, ubiquitous wireless. And, in a time of climate change and rising waters, we sit in a spot where the alluvial plain sinks into the Gulf. Had Rita come ashore southwest of Lafayette instead of south of Lake Charles we'd have seen storm surge in the southern half of the parish and up the Vermilion River to I-10.

Doing Less with More
We can hope to do less (use less energy, spend less money) with what we have more of (networking and community).

The AP article talks about what is being done in some locales--and neglects to mention how important a capable, pervasive network is in making its dreams possible. Without two way communication between the customer and the electrical grid none of the potentials can be realized.

What the engineers at power companies want is to eliminate the spikes in demand that drive the costs of providing service up dramatically and make the network dangerously unstable. Here in Lafayette you might be surprised to know that our Fiber To The Home network is not the most expensive public works project undertaken in last few years. In fact building a set of gas-fired power plants here in the parish to handle merely the occasional peak demand cost nearly twice as much! (Nobody much noticed that project and it sailed through the council with out much public notice or media comment.)

Saving money on that cost is something that, if you have smart communications, you can share with your customers who are willing to help cut such peak demand. Power companies have long sought a way to give customers breaks who cut their usage during such periods--but the technology simply has not been available in a world where the finest grained reading of meters is done monthly. With smart, continuously read meters and a tight connection to a household network a dramatic set of possibilities for helping the power company, the consumer, and the environment emerge.

You can simply charge more for electricity during peak usage periods. Smart consumers and especially businesses can shift their usage cycles to respond to that price savings. Big electricity users like chemical plants have had such capacity for years--and have responded well, running power-intensive processes in the middle of the night helping providers save on new capacity. Other, more sophisticated programs give the consumer a substantial break for allowing the power company the ability to reach in to the home and raise the AC temperature 2 degrees, or to turn off the hot water heater or refrigerator for an hour during crisis moments. Just being able to monitor how much running various electricity-hungry processes costs can have a surprisingly good effect on holding down wasted use.

--------------------
So, if you're interested in this sort of value-added convergence of LUS Fiber and LUS Power consider coming to this evening's LWV meeting. --The focus will be the network but expect Huval to introduce this new potential to the community.

Monday, May 5, 2008, 6:30 @ City Hall, Conference Room
(6:00 for Social/Refreshments)
Lafayette Consolidated Government Building—705 W. University Avenue

"LUS fiber project still on schedule"

The Advertiser published a small update on the LUS fiber project "LUS fiber project still on schedule" whose title just about says it all.

The headend building near the I-10/I-49 junction is now up; I was by there the other day and it is a solid looking building—massive prepoured concrete slab walls give a solid impression. It's not the showcase building LUS might have originally wanted but it ought to weather the storms.

But here's the part I liked; a quote from Huval:

"But I can tell you that it's going to be everything we promised and more. We've got people working six-plus day weeks trying to make this thing happen."

That's what I like to hear. (Incidentally, I talked to one of the engineers in charge of the project the other day and from the way she described her job it sounds like the director's description of the work week is pretty much literally true.)

Against the Grain

With the country sinking into a recession and the housing market collapsing nationwide it is somewhat comforting that Louisiana is going against the grain.

Loren Scott, the media's go-to economist from LSU, predicts a continued strong economy and particularly a strong housing market in Lafayette according to an article penned by a local realtor in today's Advertiser.

What did Scott say specifically about Acadiana? He noted many positive indicators including a low unemployment rate, a strong oil patch, a large number of building projects, LUS fiber system, hospital expansions, Acadian Ambulance expansion, Dynamic Industries contracts and discovery of more oil in the Gulf. In other words, Acadiana has a vibrant economy and an excellent housing market. They are predicted to remain strong for the next two years. (emphasis mine)

What's interesting in the context of this site is that the LUS FTTH network has already graduated from a gee-whiz, that-would-be-neat-if-they-get-it status to an accepted, off-hand element in a list of strengths for the region.

Here's to hoping that the lower prices, an amazingly advanced product, and better service that LUS Fiber are bringing will do its part in keeping the wolf from the door locally.

Video franchise bills all take; where's the give?

The statewide video franchise bills up for consideration in the Louisiana Legislature are, in fact, bad news as John and the LMA (pdf) have made clear. But, based on the 2006 experience where only Governor Blanco's veto prevented a version of this legislation from becoming law, I also believe it is clear that some form of this legislation is going to pass again this year and Governor Jindal will sign it into law.

First, let's make clear that while AT&T is the prime mover of this legislation, the cable industry is on board. That's because this legislation or a subsequent package will ultimately give cable companies the same freedom to cherry-pick and red-line neighborhoods that the phone company is seeking with these bills. They'll demand a level playing field.

It was no accident that Cox Communications announced its latest rate increase just as the Legislature was heading into its Regular Session. That enabled the various astroturf movements to begin flooding newspaper editorial pages with letters to the editor, condemning the cable companies and singing the praises of competition.

Think of this as a choreographed fight for the benefit of the viewing audience, rather than a brawl. The cable companies and AT&T are partners in this dance. Cox stepped on a lot of consumer toes in order to make them receptive to the competition paeans that the phone company allies would produce.

Cherry/Red

That ability to selectively deploy new network technology is the heart of the issue.

How do I know this? Because John and I sat in on the 2006 negotiations on that year's version of these bills when the phone company (still called BellSouth at the time) flatly refused to deal on offers that did not free them from community-wide build-out obligations.

What does this mean for communities? It means, for starters, that the State of Louisiana will become the official enforcer of the digital divide in our state; that is, enforcing that divide will become official state policy codified in the law.

Under current law, local governments have been able to require community-wide build-outs in their negotiations over franchise agreements. Under the three bills being offered in this session to create the statewide franchise, there will be no community-wide build out obligation.

That means that AT&T (but more likely, cable companies) will be able to deploy their new network technologies only in those neighborhoods that they believe will be most receptive to using it. Yes, I think cable companies will be the primary beneficiaries of this legislation because AT&T is not going to be making huge new infrastructure investments in Louisiana. They are carrying a heavy debt burden now and expecting things to slow down as the national economy moves into recession.

But, cable companies are already pretty well deployed across the state. Look for them to work to amend the legislation to allow them to selectively deploy new network technology in the communities where they are already in business under existing local franchise agreements. This will be a particularly attractive path for companies like SuddenLink that bought older networks in slower growth markets from Cox (Lake Charles and Alexandria among them) shortly after the Atlanta-based media company went private.

Consumers As Shields

AT&T and its allies are using the well-being of Louisiana consumers as the poster children for their argument to be relieved of the onerous burden of local franchise agreements. But, those are crocodile tears. In fact, most consumers will be losers as a result of this legislation.

How so?

It flows from the freedom phone and cable companies will have to bypass those neighborhoods that they deem not sufficiently attractive to them to warrant their network investments. When the insurance industry did this, it was called red-lining. When only the best neighborhoods are targeted, it is cherry picking. It is the preferred corporate way.

The fact is that there is no commonality of interest between these companies and most Louisiana citizens — or, for that matter, the best interests of the state. AT&T, Cox and others are focused on return on investments. Which is all fine and good for their stockholders. It is the American way.

But, there is a divergence of interests between the profit motives of those companies and the best interests of communities, particularly when it comes to the issue of access to modern network technologies. Access to those technologies is essential for the economic success of individuals, businesses and communities. With the video franchise legislation, the Legislature will be saying to the phone and cable companies that it is just fine with them if those companies want to exclude certain neighborhoods and communities from access to these technologies.

Combined with the burdens and limitations imposed on communities to act in their own interests on the matter of network technologies via the Municipal Fair Competition Act of 2004, the Legislature (and presumably Governor Jindal) will be handing over control of the economic fates of communities and neighborhoods to companies like AT&T, Cox, SuddenLink and others.

Where on the hierarchy of priorities — for investment, for deployment of new technologies, etc. — of those companies does the fate of those communities rank? With the limits placed by the so-called Fair Competition Act, this is a vital question because communities will have little or no recourse to the decisions that these companies make on matters about access to advanced to technologies.


Where's the 'Give'?

The statewide video franchise legislation would give the phone and cable companies everything they want. What are they giving up in exchange for this largess? So, far, nothing.

Recognizing the political reality that a few hundred dollars in campaign finance contributions from the phone company buys a lifetime of loyalty from legislators, I don't believe there's much chance to defeat this legislation. Some form of a statewide video franchise will emerge from this session and Governor Jindal will sign it.

Viewed from that perspective, what can communities take away from this battle? As matters stand, there is nothing in this legislation that benefits communities. As the record in North Carolina shows, consumers are not going to get benefits of competition that is, supposedly, at the heart of this stuff.

Legislators need to take their eyes off the corporations for just a few minutes and think about their constituents. The statewide video franchise will consign some number of citizens — primarily in middle and low income neighborhoods, to second class digital citizenship by relieve phone and cable companies of the obligation to include those neighborhoods in their new network build-outs.

This is a public policy disaster in the making that runs against the efforts of the state to upgrade the quality of the workforce here. The network tools needed for workers to fully participate in the connected workplace and the global economy will not be available to every one, only instead of a market failure, it will be the direct result of public policy.


The Fairness Doctrine

There is a way to lessen the negative impact of the statewide video franchise legislation. That would be to restore to communities the right to act in their own self interests in matters of network technology access.

That is, those interested in closing instead of widening the digital divide in Louisiana should move to amend this legislation to include a repeal of the Municipal Fair Competition Act of 2004.

The logic of this is rooted in the points made earlier: the interests of the phone and cable companies are separate and distinct from the interests of communities and, indeed, the state.

The only entities that are obligated to act in the interest of all citizens in communities are local governments.
As Lafayette has demonstrated, local governments have the technological skills and the financial means to act in their own self interests in the arena of network technology. LUS is in the process of deploying its fiber network now. By the end of the year customers will be able to sign up to get levels of network services that no other community in the state — and only a handful in the country — will be able to access.

Other local governments must have the freedom to act in the interests of their own citizens rather than be forced to stand idly by as these network builders shunt aside the interests and aspirations of large segments of their citizens.

The Municipal Fair Competition Act is a relic of a soon-to-be bygone era when phone and cable companies proclaimed that they sought to serve entire communities. Local governments should be freed to act to respond to the needs that these corporations are fighting for the right to ignore.

Repealing the 'Fair Competition Act' is a fair trade off for passage of statewide video franchise legislation. Doing so would free local governments to act on the interests of the community that the phone and cable companies do not share.

Amend the statewide video franchise bills to include a repeal of the Municipal Fair Competition Act. It's in the best interest of Louisiana.