The CBTF Found Lacking?

Heh, and double Heh, as Glenn Reynolds would say. ThirdPipe has gone thru the CA Broadband Task Force report. we dearly hope that they did not pay any serious money for this. For example the recommendations in overview had this to say –

Recommendation #1:
Build Out High-Speed Broadband Infrastructure to All Californians

Recommendation #2:
Develop Model Permitting Standards and Encourage Collaboration Among Providers

Recommendation #3:
Increase the Use and Adoption of Broadband and Computer Technology

Recommendation # 4:
Engage and Reward Broadband Innovation and Research

Recommendation #5:
Create a Statewide E-Health Network

Recommendation #6:
Leverage Educational Opportunities to Increase Broadband Use

Recommendation #7:
Continue State-Level and Statewide Leadership

ThirdPipe has issues with all of these which we will get to in a moment. But what distresses us even more is that several leading IT magazines are calling this a ‘California Broadband Report Offers Model for Other States…’

To understand why ThirdPipe considers this report less then stellar in nature lets take a look at the facts that the report itself engenders:

• 96% of the population of the State has access to something called a broadband pipe. E.g. DSL or better. (pg 7)
• Roughly half of Californians make use of broadband access. (pg 7)
• 1.4m out of 35m Californians do not have broadband access. (pg 7)
• Review the regional appendix; you will note that it is the rural areas that are impacted. (pg 37-49 inclusive).
• This report was generated with the support of WIRELINE companies — Cisco, AT&T, Verizon.
• Loss of leadership. –

growing from 5.17 million to 58.24 million lines. During
the same period, satellite and wireless broadband grew by
5,998 percent.

Despite these dramatic increases, the UnitedStates has lost considerable ground in comparison to other countries. In 2001, the country was ranked 4th in the world, according to statistics from the Organisation for Economic Development (OECD). As of June 2007, however, 14 of the 30 member nations had higher levels of adoption rates than did the United States.

Definitely take a look at the graph on page 24 of the report.

General Observations

1. Is this a scam? With a 96% penetration of broadband to the general population this is a report looking to suck money from the taxpayers. Bonds being a general obligation of the State tax base. But it is assuredly a ‘problem’ not needing a solution generally.
2. Only half of Californians who have access make use of it? Now the report suggests a need for further penetration. This is still a free society, if someone chooses not to use the services what is the State going to do? Bust down doors and force someone to get an upgrade? The HOW is of course price and services which is in the providers hands. Want more penetration? Lower your prices and eliminate setup fees — Verizon, AT&T, Comcast and Time Warner.
3. Addressing the 1.4m Californians without broadband service is not probably a wireline solution. Especially considering that the Majors (AT&T, Verizon) have been desiring to abandon these areas as it does not fit their price/service model. These individuals need to acess needs from a much different wireless perspective. Its the only technology that has a chance to provide the capability and potential of a servicable profit. That means WiMax or 3G as appropriate. But this is a need for a SPOT solution for rural areas not a broad brush, one size fits all rewire the State solution.
4. The report references several times the need for upgrades for schools. ThirdPipe would ask, what happened to all the NCLB grant monies that were allocated to K-12 schools? Most of them should already be wired. Here in our local Texas area most of the schools were wired with fiber years ago.

Recommendation Specifics

Recommendation #1:
Build Out High-Speed Broadband Infrastructure to All Californians

• Issue broadband bonds to aid infrastructure deployment
• Create the California Advanced Services Fund to fund infrastructure
• Provide tax credits to extend broadband to communities without sufficient broadband
• Increase participation in and consider expanding the California Teleconnect Fund

These first 4 suggestions will not affect the penetration at the individual user level. Only by affecting price will any meaningful penetration be increased.

• Reauthorize and lift the $2.5 million per project cap on the Rural Telecommunications Infrastructure Grant Program

We would suggest probably not. Technologies today, especially for wireless, rural community development would not require near that level of indivdual capitalization.

• Fully implement the state facility inventory database for wireless infrastructure.

Punt, its bureaucracy. Just do it.

• Use wireless facility lease revenues in the Digital Divide Fund
• Allow Community Service Districts to provide broadband services if the private sector does not deploy service in that location.
• Assess anchor tenancy opportunities as a part of every state agency’s process to negotiate leases
• Provide access to state rights-of-way on a cost-recovery basis for wireless providers in unserved areas.
• Create public/private partnerships across California to upgrade state infrastructure and provide wireless broadband to unserved and under served areas in return for no-cost leases
• Offer small spaces on state-owned properties for collocation facilities

Here we generally agree. However we would recommend forgoing the typical carrier. They have been loathe to invest. Bring Fon and other open source - community players to the fore in this regard.

Recommendation #2:
Develop Model Permitting Standards and Encourage Collaboration
Among Providers

• Convene a statewide group of stakeholders from local governments and the provider community.

This group should develop:

• A voluntary municipal application process
• E-permits
• A permitting time line for standard types of permits
• Metrics to measure efficiency of the permitting process and compliance to issued permits
• Guidelines for the use of blanket permits for large, long-term infrastructure placements
• Guidelines for moratoria on above-ground facility construction
• Conduit standards
• Commitments for placing standard spare conduit in the Rights-of- Way at times of construction

In the main, ok. But ThirdPipe wonders, especially on the last 3, was in the pervue of the carriers to affect today. “A voluntary municipal application process”, what? Isn’t the permitting process already voluntary? Most of the rest of it is municipal falderall.

Recommendation #3:
Increase the Use and Adoption of Broadband and Computer Technology

• Establish a public-private partnership to ensure that every household with a child is able to have a computer with high-speed Internet in the home and the ability to use it
• Use incentives to increase computer donations from the private sector and the government to under-served families and non-profit organizations
• Develop an education campaign to promote broadband and its importance to California
• Create a community technology resources map that provides a database of community technology access points, technology training programs, technical support organizations, and low-cost and refurbished computer resources

Herein is where we have concerns with enforcement. Is it going to be a crime that a child without a broadband connection is considered child abuse? The donations from the private sector is becoming a moot point. PC cost is dropping like flies. You can’t tell me somebody would find $199 high priced. The same for nonprofits. Education campaign? Hmm. In my day we called that advertising — paid by the seller. The last bullet is just more bureaucracy.

• Empower community colleges to expanding digital literacy programs
• Include a technology literacy component in the Workforce Investment Board strategic plan and increase funding by 10 percent
• Expand Career Technical Education opportunities in Secure Community Re-Entry Facilities
• Make effective use of community institutions that provide technology access and training
• Provide tax incentives to technology-based businesses offering training and technical support to at-risk communities.particularly disabled and low-literacy populations.

What can I say? This has and is being done today all other the country by various for profit and nonprofit organizations. Showing someone how to ‘compute’ does not always translate to ‘I will use’ the technology.

Recommendation # 4:
Engage and Reward Broadband Innovation and Research

• Refocus the California Research & Development credit
• Create the Community Innovation and Research Initiative
• Develop a Teen Innovation Project
• Grant Governor’s Broadband Innovation awards
• Expand the UC Discovery Program

Here it’s a case of who gets what. The State already provides grants but the distribution is not a telecom on. In a capitlist society R&D generally is borne by the profiteer. But specifically to the reach of broadband, R&D is not the issue — deployment is. Get on with it. Take the results of the 700mhz auction and partner with players who will deploy WiMax to the 1.4m CA residents who don’t have it. Teen innovation? My God my son and daughter can textify me into the dirt. They don’t need any training. The last two bullets, ditch.

• Expanding the state portal, www.ca.gov, and cataloging best practices in local government portals
• Publicizing information through partnerships with non-profit organizations
• Supporting trained “e-government efficiency” staff in community centers
• Supporting telecommuting and Virtual Office
• Adopting innovative applications

Government speak for a waste of taxpayers dollars. A simple excuse for spending grant dollars with no identified benefit to the issue of user acceptance. However there is a gem here, second to last bullet on telecommuting. CA was an innovator in requiring any employer with 500 employees or more implement and reach a telecommuting target. Expand that to the individual. Incent the employer and employee who can virtual commute to do so via reduction in State taxes for both parties. Use State gas tax dollars to fund the program. With a reduction in road usage there should be a perceived savings in road maintenance that can be diverted to this program. Do this to unclog the freeways.

Recommendation #5:
Create a Statewide E-Health Network

• Implement a shared vision, strategic plan, and sustainable business model for the network.
• Ensure sustainability for the e-health network
• Increase the availability and use of e-health applications
• Remove barriers for appropriate reimbursement by health plans
• Improve the capacity to provide e-health

A crumugdgon of a comment — no e-doctor is going to make you e-well. Health care is a hands on physical experience. Where e health services can be useful is in post operative monitoring rather than having the patient languishing in a bed at a high cost rate. For that limited application ThirdPipe sees a fit.

Recommendation #6:
Leverage Educational Opportunities to Increase Broadband Use

* Connect schools that are unconnected to the K12 High-Speed Network
• Provide assistance to small school and library districts in completing applications for E-rate funds
• Evaluate the bandwidth, technology, and support needs of educational stakeholders to create a support system

If a school is unconnected ok. We would still ask what happened to the Federal funding that was targeted for that purpose? Evaluation services are part of services before the sale by the winning bidder. The taxpayer should not be paying for it.

• Consider wireless broadband solutions for students and faculty living in limited-access communities
• Create and disseminate technology-enabled curricula to the education community
• Develop technology literacy programs in Prop 49 supported programs
• Support policies to ensure that all youth graduate schools proficient in 21st century skills Foster partnerships with community institutions that provide technology access and transition
• services to students with disabilities and foster youth
• Revise grant rules to encourage participation in educational events from remote sites

Question is all these bullet points are the function of the current educational system. It isnow part of their function process to deliver such skills. Yes Dear Taxpayer that is your wallet being pilfered.

Recommendation #7:
Continue State-Level and Statewide Leadership

• Continue the California Broadband Initiative within state government
• Periodically convene the California Broadband Task Force
• Support a public-private partnership to create Community Broadband Leadership Councils to increase demand in unserved and underserved communities

Pitch it all. This is a sop to continue this Board’s control. Nor do we see where BLC’s would function to increase demand in a location that is not being served. That’s like asking a LA resident would they like to do more horseback riding.

Conclusion

There are gems in this report worth considering –

• Permit the use of State tower facilities on a lease basis where the space is available. This would assist in a cost to deploy scenario. However the opportunity cost defrayed must be represented back in the user base rates not to the corporate office.

• With a 96% penetration ratio, there is really only one area with a problem — the north and inland areas of the State where there is low population densities. Nor will these areas be properly served using wireline facilities totally. This is best resoved with 700mhz wireless services.

• With the State now in a fiscal crisis floating bonds for what appears to be a minority of Californians does not make sense. Better to leverage new wireless technologies with business partners who do not have the desire to abandon rural communities.

• Regard to rural communities, many are served by phone cooperatives. The State should encourge these entities to partner with the 700mhz providers by lowering the bar on appropriate charter reorganizations.

• Loss of Leadership is quite an indictment. Who are the leaders but Verizon, AT&T, Comcast and Time Warner. It is this group that by lack of foresight, lack of verve, lack of support, and most notably by greed and avarice have permitted the country to come to this state of affairs. Should we then turn around and reward these very same entities with yet more of the public trough? ThirdPipe votes nay.

When one looks at Korea and see WiMax services at 10mb for $30/mo one has to wonder. Is the penetration problem one of access? Certainly not when its 96% available to the population. Is the penetration problem a matter of knowledge of the end user community? Here again we think not, as 50% of the CA population is using the access and amongst the younger age group it is even higher.

The problem? A lack of competition both in provider and technology. Bundled cable rates of $100/mo on full depreciated assets is a crime. One only need to look in the US wireless market where there is competition for customers to see that the rates have dropped drastically since cellular was created. That level of competition needs to be permitted in the wireline side. Only by delivering 10mb @ $30-40/month will penetration rise in the broadband market place.

How to get there –

• Go naked. Have incumbent carriers provide a unbundled full pipe at a decent cost.

• Go WiMax. Wireless fixed base is the only economical way to implement a broadband solution in rural areas.

• Go Open Source. There are technologies and groups that can make this happen. Rural areas can and will implement their own solutions at cost structures far below the major carriers. If so then the State needs to get the incumbents out of the way, not get in bed with them. Watch San Fransisco of all places. They are doing it.

• Go without the bureaucracy. Regional boards, State oversights, Local committees are structures that get in the way. Controlled anarchy can and does work, for it is the basis for the Internet itself. The anarchist just needs to follow a few rules. They do so for the leverage offered is too powerful to ignore.

The rest of it — shelf fodder.

[Report located here.]