Broadband InternetThe “Railroad” of Our Era

Trevor TextorRural IT & Telecom Consultant

Principal, Textor Corp.

-- Fostering “it just works” rural data communications systems that enable clients to focus on their core business --

www.textor.caca.linkedin.com/in/trevortextor

Agenda• The new themes of the internet: Sharing & Contribution • What is Broadband?• Broadband’s Impacts (Economic, Social)• Broadband Growth & Drivers• Role of Wireless (mobile) in Broadband• Understanding wireless• The components of Broadband Costs• Sharing & an Open Access Network business model• Canada’s status for sharing (cell plan comparison)• Roles of the regulators (CRTC, IC)• Ideas for promoting Broadband growth

Broadband is the “glue” for:

• Convergence– Internet Protocol; consolidation of

multiple cables to a single cable

• Increasing Resource Utilization– Move of compute to data centres

(Cloud services)– Virtual Machines– Big Data Analytics– Sharing Economy (AirBnb, Car2Go, etc.)

The Sharing Revolution

~Pre-2010 “Couch Potato” Internet worked fine– Example Asymmetric Service: 20 Mbps 1 Mbps

New Reality “I have a voice” – Less Asymmetric OK 20Mbps 5 Mbps – Ideally Symmetric 20Mpbs 20 Mbps

Contribution

• Basic level of service target in bandwidth (Mbps)

• Definitions of “Basic service” from:– Akamai: 4 Mbps @ <35ms uncongested last

mile– FCC (US):

25 Mbps 3 Mbps– Industry Canada:

5 Mbps 1 Mbps

Broadband Internet

Broadband Impact (Benefits)

Economic InnovationProductivity

Social Access to servicesHealthcare

Environmental Efficient energy consumption

Broadband’s Economic Impact

• Doubling broadband speeds for an economy can add 0.3 % to GDP growth

Canada = +$5.5 Billion/year

Federal Funding for Broadband Development = $350M

Broadband’s Social Impact (Democracy)

• Social Media catalyzes pro-democracy movements - Twitter Revolutions

• Requires Mobile Broadband Internet• United Nations Broadband Commission cites

broadband “stimulate[s] democracy”

Broadband is Critical Infrastructure• “… broadband service … must carry the same

obligations as so many of the other vital services do.” President Obama

• “… a foundation stone of modern society….” (United Nations)

• “a basic human right” (popular opinion)• All developed countries now have a

broadband plan and committed government dollars.

Broadband – This era’s “railroad”

Video Killed the Internet (Star?)

• Broadband internet usage is doubling every 1.5 years.

• “Cable TV Replacement” – 52% of internet traffic (37% Netflix)

• Per Session Stream Requirements:– HD (1080p) 2 Mbps– UltraHD (4K) 12 Mbps

Telepresence (The Future)

• Immersive Video – like you’re there– Telemedicine (“house calls”)– Business Meetings

• Per Session Stream Requirements:– HD (1080p) 20 Mbps– UltraHD (4K) 120 Mbps

• Why the world needs to endlessly build more broadband (fiber, towers)

Telepresence (The Future)

• Per Session Stream Requirements:– HD (1080p) 20 Mbps– UltraHD (4K) 120 Mbps

• Why the world needs to endlessly build more broadband (fiber, towers)

• Bandwidth demand outstripped supply Not naming any names… (cough) Netflix

• Valid technical reasons for priority

• Bob Kahn, co-inventor of IP calls Net Neutrality a “slogan”

• Best solution is to have abundant bandwidth

Net Neutrality

Wireless• Majority (60%) of Internet Access is mobile

(wireless)• Cooper’s Law is the world’s longest running

growth S-curve (120 years):

The ability to transmit different radio communications at one time and in the same place has doubled every 30 months since 1895

What is Wireless?

• Wave of energy• Transmission of a minimum level of energy

dictates packet error rate and ultimately bandwidth

• Choice of frequency dictates:– Range – Bandwidth

Need more wireless infrastructure!

ServicesVoice VideoWeb Browsing Email

Active Components 15-30%Economic Life: 5 - 7 years(radios, routers, switches)

Passive Components 70-85%Economic Life: 15 – 25 years(Spectrum, Civil engineering works; towers, trenches, laying duct/cable)

Cost of Broadband

Critical Passive Components for:

• Wireless = Towers / Spectrum– Bandwidth bounded by Tower

Weight Support Capacity

• Wired = Fiber / Conduit (trenching)

Cost of Broadband

Spectrum LicensingBeginning to Not Make Sense

Open Access Network Model (OAN)Leveling the playing field

• Model for sharing costs

• Company that owns passive component not allowed to own active component

• Maximizes sharing/utilization of components

• Encourages competition at the service level!

Open Access Network Model (OAN)

Savings Estimates By Level of Sharing

Sharing Level Savings Estimates (total as sharing as increased)

Site Sharing (tower/room) 10%Infrastructure Sharing (electricity, A/C, etc)

16-20%

Telco Equipment Sharing 25%National Roaming 30%Full Sharing (Includes sharing a core transmission network)

40%

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Canada’s Sharing Status

Canada IndiaCell Plan (~4GB data) $75 CAD $20 CAD

Less than 5% wireless infrastructure sharing.Less than 10% wired infrastructure sharing.

Comparison to India (66% wireless sharing) :

• Telecom Act only applies to Big Telecom

• Complicated Regulatory regime: CRTC and Industry Canada

• Focus on wired passive infrastructure sharing, not mobile passive infrastructure sharing (towers / roaming)

Canada’s Towers By Ownership

TelcomOther Indus-tries

Ideas For Change

Promoting Broadband Growth:• Focus on infrastructure sharing • Raise visibility via statistics• Create a marketplace

(rentfaster.ca / eBay)• Improve regulator effectiveness

Promoting Contribution• Educate consumers• Demand higher upload rates

Questions / Thank You

Trevor TextorRural IT & Telecom Consultant

Principal, Textor Corp.