Broadband ? Bob Loube NASUCA 2011 Thanksgiving Loube NASUCA 20111

Where has all the money gone? Net Investment ATT$58.8b$25.0b Verizon$46.7b$23.7b Qwest$14.8b$8.6b Loube NASUCA 20112

When will they ever learn? We will build broadband if: You give us the Yellow Pages Profits – Opportunity New Jersey Accelerate copper depreciation – BellSouth Florida Allow the merger to go through – Project Pronto –SBC buys Ameritech Eliminate UNEs for fiber and advanced networks – TRO Set terminating rates at approximately zero – the NEW ORDER Loube NASUCA 20113

The ARC Is it a SLC? Is it a PICC? Is it SLC SLC? Will it be part of the Lifeline Program? If so, how does it fit into the $4.5 billion budget? If not, what happens to low-income consumers? Loube NASUCA 20114

Distributing the Price Cap Carrier Money Year One: based on a regression line that no one has reviewed Year Two: based on a model that no has seen Loube NASUCA 20115

The quality of service standard ATT’s U-verse can provide 6mbps downstream and 1.5 mbps upstream Verizon’s FiOS can be provide service at very high speeds – I have 25mpbs in both direction DSL can provide 6mbps downstream and 768 kbps upstream Rumor has it that the order will require 4mbps downstream and 1 mbps upstream Loube NASUCA 20116

The quality of service standard and the model The model will build fiber to the home. What happens if model investment is $1000 per line and investment to meet the required service quality is $50 per line – a new mini- DSLM The difference is profit to the carrier The difference limits the total number of customers that can be supported given a budget constraint. Loube NASUCA 20117

Wireless v. Wireline Should we support two separate networks? Should we push for an integrated network? -fiber to the premise -micro cells that minimize the need for spectrum Should state funds provide support to pilot projects that promote an integrated network? Loube NASUCA 20118

What to do about the Intercarrier Compensation Regime? See you court? Enlarge all local calling areas to be equal to the wireless MTA areas in each state Set transit and tandem rates to zero if one of the parties to the call is a customer of the carrier that owns the tandem Set transit and tandem rates to $ per minute if the call is between customers of carriers that do not own the tandem Investigate wholesale long distance service Loube NASUCA 20119

Wireless MTA MAP Loube NASUCA

Moving to an IP network Wyoming Century Link: 0 of 41 offices have IP switches Rural Carriers: 12 of 53 offices have IP switches When the FCC encouraged the move to 1-plus dialing it allowed carriers to increase access charges to recover unamortized balances in the old technology Suggestion: retain LSS if the carrier purchases an IP switch Loube NASUCA

Other ways to encourage broadband build-out Finance municipal ownership of fiber infrastructure Reduce the SLC by 50 cents per year for each year a reasonable standard is not met Reduce the local rate by 50 cents per year for each year a reasonable standard is not met Loube NASUCA