Soon, 200kbps Might No Longer Be Considered Broadband

from the 14.4k-seems-like-broadband-when-you're-used-to-2.4 dept

While we wait for the details of President-Elect Obama's "broadband stimulus" package to emerge, one aspect of such a plan hasn't gotten a lot of attention: just exactly what the government will consider to be a broadband connection. For a long time, the FCC considered anything that delivered over 200kbps downstream to be broadband, though last year, it raised the minimum cutoff to 768kbps. It's not a coincidence that's the minimum speed offered by many cable modem or DSL providers, making it seem as if the government standards were shoehorned to fit the market, rather than designed to encourage any growth or higher levels of service. So a key part of any broadband plan will be where the administration sets the bar for what's considered broadband, and what will be eligible for the government benefits. For what it's worth, Qwest has said broadband should be considered to be a minimum of 7Mbps, corresponding to service it's currently rolling out. It doesn't seem likely that the government would make the leap from 768kbps to 7Mbps in one fell swoop, but only by setting the minimum at a reasonable level -- and holding incumbent telcos to their commitments -- will broadband policy stand a chance of being effective.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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Exploiting Telco Regulations For Free Calls And For Profit (Lots And Lots Of Profit)

from the so-easy,-it's-almost-criminal... dept

Earlier this year, we wrote about how suddenly a bunch of "free" calling services were popping up that all seemed to use phone numbers in Iowa. This included a service that would let you call an Iowa number and from there call anywhere in the world for free as well as a variety of "free conference calling" services. All of these systems were actually exploiting some legacy telco regulations, that were officially designed to help rural telcos get extra money to build out more rural service. Basically, the government allowed rural telcos to charge high termination fees to other telcos when calls from their lines terminated on one of the rural telco's lines. So, if you had AT&T and called your cousin in Iowa who had some small rural telco, AT&T would actually have to pay that telco some charge per minute, with the idea being that the telcos would use that money to invest in infrastructure. Of course, the infrastructure they invested in wasn't exactly building more lines to wire up others in the town, but in VoIP systems so they could reroute calls in to anywhere else, and then team up with various online sites to get as many calls as possible routed through those systems. Then they could just sit back and collect the millions of dollars rolling in from telcos. Broadband Reports points us to an article at the Wall Street Journal going into more details about how this happened -- and how the FCC is now scrambling a bit to see if there's a way they can stop it. In the meantime, the WSJ piece notes that while the telcos have been told by the FCC that they have to keep connecting these calls, they've simply stopped paying any of the termination fees as they await the results of the various lawsuits. Of course, all that's done for now is made the various free conference call services switch to other rural telcos in other states. Eventually, though, they'll run out of other states to go to (or the regulators will finally realize how their regulations are being exploited) and the little regulatory exploit will go away.

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