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The Internet United States Government

Are America's Big Telecom Companies Suppressing Fiber? (salon.com) 446

Salon just published a new interview with Susan Crawford, the author of "Fiber: The Coming Tech Revolution -- And Why America Might Miss It." Crawford has spent years studying the business of these underground fiber optic cables that make fast internet possible. As it turns out, the internet infrastructure situation in the United States is almost hopelessly compromised by the oligopolistic telecom industry, which, due to lack of competition and deregulation, is hesitant to invest in their aging infrastructure... This is going to pose a huge problem for the future, Crawford warns, noting that politicians as well as the telecom industry are largely inept when it comes to prepping us for a well-connected future...

"The decay started in 2004 when -- maybe out of gullibility, maybe out of naivety, maybe out of calculation -- then-chairman of the FCC, Michael Powell, now the head of cable association -- was persuaded that the telcos would battle it out with the cable companies, that their cable modem services would battle it out with wireless, and all of that competition would do a much better job than any regulatory structure could at ensuring that every American had a cheap and fantastic connection of the internet. That's just turned out that's just not true. Since then, he deregulated the entire sector -- and as a result, we got this very stagnant status quo where in most urban areas -- usually the local cable monopoly has a lock in the market and can charge whatever it wants for whatever type of quality services they're providing, leaving a lot of people out."

"Because Americans don't travel," she adds, "you don't get the sense of what a third-world country the U.S. is becoming when it comes to communications."
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Are America's Big Telecom Companies Suppressing Fiber?

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  • by Anonymous Coward on Monday April 08, 2019 @05:47AM (#58402310)

    "Because Americans don't travel," she adds, "you don't get the sense of what a third-world country the U.S. is becoming when it comes to communications."

    Only when it comes to communications, really? What about health care? Taking care of your poor? Having a proper democracy?

    The U.S.A. has been a third-world country for quite a while, just ask the other civilized countries.

    • Comment removed (Score:5, Insightful)

      by account_deleted ( 4530225 ) on Monday April 08, 2019 @06:32AM (#58402456)
      Comment removed based on user account deletion
      • Using checks is still a thing.

        I suspect this has little to do with the banking system and a lot to do with the nice old ladies who will let go of their checks when you pry them from their cold dead hands... in the express lane at the grocery (puts head on shopping cart and sobs).

        Affordable eductation.

        This has a lot to do with how media is portraying education. What universities list for tuition and what the average student pays after scholarships is often two different things. And people could get a plenty good education at many of the fine public colleges

      • by gweihir ( 88907 )

        The banking system is a laughing matter. Using checks is still a thing.

        What? The last time my bank gave me blank ones was more than 20 years ago and the last time I cashed one was about 18 years ago when some company invited me to the US and they gave me a check for the travel cost. These things are ancient! Interbank transfers in Europe are universally available and so cheap you do not actually pay for them.

        • Our electronic banking system is older, and therefore less secure - and it's not changing any time soon. Your account number is basically your password here, so you can't offer it up to accept a transfer. You have to keep it hidden and private.

      • That was my take on the US as well when I lived there 10+ years ago - it was like travelling back a few decades in time compared to Europe. However, for the case of fibre, I think the problem is not that companies are suppressing it for some shadowy reason, but that it costs too much to make it financially viable.

        Last summer our local Canadian phone provider, Telus, laid fibre to most of my city and since then they have been increasingly desperate for us to sign up to use it. However, the prices they are
      • by Solandri ( 704621 ) on Monday April 08, 2019 @11:28AM (#58404286)

        It does not stop there: The implementation of the PIN code on Credit and Debit cards that was available in the rest of the world was done badly and late.

        That wasn't because the U.S. is backwards third-world country (well, the sign instead of PIN part was, but not the slow rollout of chipped cards). The rest of the world got to do it better because the U.S. did credit cards first. So the rest of the world got to see all the problems with magnetic swipe credit cards before implementing their credit card systems. The U.S. by virtue of being the first adopter, has to deal with the additional overhead of replacing a much larger legacy system, instead of just implementing a clean system mostly from scratch. Virtually every merchant in the U.S. already had credit card readers which weren't capable of reading chipped cards, so the transition to chipped cards took a lot longer here than in other countries where merchants hadn't widely adopted credit card readers.

        Same thing happened with digital cell phone service. The U.S. already had an extensive analog cellular network, so was slowest to transition to digital cellular. The cost to implement digital cellular was the same here as in other countries, but the marginal gain was less because the gain in the U.S. was analog to digital cellular, while the gain in other countries was from no cellular to digital cellular. Consequently there was less market pressure to roll out digital cellular, and it progressed more slowly than in other countries. Likewise, the standard electrical socket and plug in the U.S. is the worst-designed, because other countries to got see the problems with the U.S. design and got to implement designs which fixed those problems as their standard, before they rolled out electricity in their countries. (e.g. Ground wire connects first; and live wires are covered before they're connected so you can't accidentally touch wires carrying current.) The U.S. was saddled with the inertia of that initial socket design being standard, and has never managed to overcome it and replace it with a newer, better socket design.

        So these problems aren't because the U.S. is some backwards third-world nation. it's because the U.S. is the world's spearhead - the trailblazer and first adopter. And the first attempt at implementing something is almost never the best way to do it. Other countries get for free the lessons learned from the suffering and pain of trial and error that the U.S. had to go through. Mocking the U.S. for it just means you're an ungrateful prick.

        • by jeff4747 ( 256583 ) on Monday April 08, 2019 @02:19PM (#58405454)

          The rest of the world got to do it better because the U.S. did credit cards first. So the rest of the world got to see all the problems with magnetic swipe credit cards before implementing their credit card systems.

          You really need to get out more.

          The US, and the rest of the world, implemented credit cards using imprinting of the front of the card, with a signature. Because credit cards predate the widespread use of computers.
          Once computers were widespread, the US, and the rest of the world, implemented magnetic stripes.
          Once the problems with that became widespread, the rest of the world implemented chips in their cards.
          Once the problems with that became widespread, the rest of the world added PINs to the chips.
          Then the US added chips to their credit cards.

          The rest of the world faced the same problems with upgrading their infrastructure, and they upgraded their infrastructure. We cut taxes instead.

          Same thing happened with digital cell phone service. The U.S. already had an extensive analog cellular network, so was slowest to transition to digital cellular.

          So did Japan, so did most of Europe.

          (e.g. Ground wire connects first; and live wires are covered before they're connected so you can't accidentally touch wires carrying current.)

          It seems odd you have spent such little time around electrical sockets. Guess why the ground pin is longer than the hot and neutral on US plugs. Also, you'll never guess just how far you have to put the plug into the socket before it supplies voltage to the hot terminal.

          So these problems aren't because the U.S. is some backwards third-world nation.

          I have bad news for you. It's because we are now a backwards third-world nation. We haven't been the "trailblazer" in a very, very long time.

    • Re: (Score:3, Insightful)

      by Joce640k ( 829181 )

      "Because Americans don't travel," she adds, "you don't get the sense of what a third-world country the U.S. is becoming when it comes to communications."

      Only when it comes to communications, really? What about health care? Taking care of your poor? Having a proper democracy?

      The U.S.A. has been a third-world country for quite a while, just ask the other civilized countries.

      The rest of the world looks at the USA and wonders how they put up with it the same way the USA looks at North Korea and wonders how they put up with it.

      Simple answer: "Ignorance is bliss".

    • by gweihir ( 88907 )

      Obvious from the outside, apparently hard to see from the inside. A whole large country as a filter-bubble.

  • by jonwil ( 467024 ) on Monday April 08, 2019 @06:39AM (#58402488)

    Its got nothing to do with exactly what technology is being used to provide internet service and everything to do with making sure any new players who want to come in and compete with the big boys don't get that chance. And it all comes down to content.

    All of these big ISPs know that if these new players come in, they will not only take away the revenue from the internet side of things but they will take away the far more lucrative TV revenue. Even more so for those ISPs like Comcast or AT&T who actually own content producers and channels rather than just cable platforms.

  • by cloud.pt ( 3412475 ) on Monday April 08, 2019 @06:52AM (#58402528)

    This reminds me of a ruling by ANACOM (Portugal's FCC) where the subsidised Fiber, granted installation and exploitation rights to a single one of our ISPs, which should be providing infrastructure to people that paid for it in secluded areas, is only ever made residentially, commercially available by that ISP when there is no alternative whatsoever. And guess what ANACOM accepts as an alternative: 2-8Mbps WIRELESS 3/4G or COPPER DSL!

    There are thousands of villages in Portugal that have multi-Gbps Fiber installed but also have a faint, miserable 3 or 4G connection and/or copper, where Wireless and Copper fail to reach even the tens of Mbps and are always unstable. Yet since both Wireless and Copper have the POTENTIAL of reaching those numbers (even though they never ever do), the ISP is allowed to NEGATE access to the state-sponsored network, and only sell residential copper and wireless, because those services simply bring in more revenue (Copper: requires a phone fee that adds up to 50% cost; Wireless: is much more expensive and has data caps)!!!

    This mostly happens because that infrastructure is also exclusive to the ISP in such a way that they don't even have to re-sell the Fiber to competitors, because in rural areas ANACOM exempts competition rules that would force the ISP to re-sell the Fiber!

    This is Big Telecom at its worst. They fed from state funding to expand their networks, then lobbied the state authority to allow them to make use of the state-sponsored infrastructure as they please, even by keeping the villages initially targeted to benefit from the infrastructure in the shadow!

  • by jaredmauch ( 633928 ) <jared@puck.nether.net> on Monday April 08, 2019 @07:52AM (#58402836) Homepage

    I can tell you much of the problem is about how to retrofit existing areas. New builds get fiber, but anything that existed before 2014 or so is a legacy build. I live in an area that was built in the late 90s and there's no hope of getting anything fast out here so I'm doing it myself. The costs are reasonable (about 30-50k/mile) but the majority of the issue is in permitting to go underground. (If you go on poles, it's actually just as expensive as underground in many cases due to annual fees on the poles, engineering studies, tree clearing fees, make-ready, etc.. Plus then you need to own a bucket truck and other expenses).

    The wholesale cost of the bandwidth is nothing, it's all about the cost to put the stuff in the ground and the permit process. Expect 30% of your costs (and 90% of build-time) to be constrained by engineering and permitting costs. The rest of that 30-50k USD/mile cost is the labor and materials needed. You need to put in a place every 2-3 homes you pass to deliver service. There are a lot of people doing this in rural areas to close the gap but most people have only heard of the incumbents so there's a market awareness problem. Many people that are WISPs (see WISPA.org) are now moving into the fiber world, but the capital costs are around 50-250k to get all the equipment you need for underground construction.

    Rough costs if you care: 35c/ft for conduit, 7-10c/ft for fiber (once you get large counts like 96 count, it's closer to 1c/strand/foot) and $100-300 for a pedestal or hand-hole, plus splice trays, etc. $1/foot (linear) * $1/foot (depth) for your route if it's not complicated. Costs go up in urban environments very quickly if you have a lot of requirements or other utilities to dodge.

  • And so TMO, in the midst of a merger plan with the Sad Sack of the industry, is also working on Band 71 deployment as a rural broadband (oh, and yes, mobile service) solution. This is an excellent time to refocus on fiber, engage in another round of subsidized buildout, and let this new fiber, 'everywhere', sit dark.

    How much fiber was laid by Ma Bell pre-breakup, and how much was resold to us for long-distance rate reductions that never actually happened?

    How much of that fiber was laid as expense, not inves

  • Americans travel. 42% of the population owns a passport.

    Fiber != fast. There are consumer ISPs that are offering multi gigabit service over copper. Stop parading the myth that fiber is needed to provide extremely fast Internet speeds. Sure there are some competition issues at the local level (a lot of it created by the local government allowing a monopoly so they can receive extra revenue) but that can easily be resolved.

    • by Bert64 ( 520050 )

      Which is a lot less than most other western countries...
      And just because someone has a passport doesn't mean they ever travel, many people possess a passport to use as a form of ID as many places demand to see a photo id.

    • by Nidi62 ( 1525137 )

      Americans travel. 42% of the population owns a passport.

      Only because you now need passports to go to Canada, Mexico, and the Caribbean. In 2006, there were 70 million passports in circulation according to the Sate Department. By 2010 there were over 100 million in circulation. In 2007, the US government required passports when traveling by air to Canada, Mexico, and the Caribbean. In 2009 they were required for land travel to Mexico/Canada as well. Most Americans haven't even left this continent, much less this hemisphere.

  • by AHuxley ( 892839 ) on Monday April 08, 2019 @08:53AM (#58403230) Journal
    Your only telco in town can't offer 1000/1000 services?
    Ask them for a 1000/100 service.
    When they say no ask them again for 1000/1000 service for the town.
    Plan for community broadband.
    Ask for 1000/1000 around the town again.
    Wait for the NN telco to say no. That wireline is going to stay. That is the NN approved network is the network they have to offer as a monopoly telco.
    Tell the city your granted telco monopoly no longer deserves any monopoly protection as they are doing nothing of value with the monopoly.
    Get community broadband working.
    Connect the community at 1000/1000 when they request that type of connection.
  • The telcoms know that between 5G Home Service and services like Star Link, running fiber to the house is a looser..

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