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					             Faster, Cheaper, Safer: Public
                Policy for the Internet
                            Henning Schulzrinne
                         FCC (& Columbia University)

               Any opinions are those of the author and do not necessarily reflect the views or policies
               of Columbia University or the FCC.



with slides by Julie Knapp, and others
                  Overview

• Spectrum
• Broadband: faster, cheaper, everywhere
• Transitioning the PSTN to the 21st century




                                               2
                     Time of transition


Old                                     New
IPv4                                    IPv6
circuit-switched voice                  VoIP + text
separate mobile voice & data            LTE + LTE-VoIP
911, 112                                NG911, NG112
digital cable (QAM)                     IPTV
analog & digital radio                  Pandora, Internet radio, satellite radio
credit cards, keys                      NFC
end system, peers                       client-server v2 aka cloud

all the energy into transition  little new technology
    Cisco’s traffic prediction




 Ambient video = nannycams,
petcams, home security cams,
  and other persistent video
          streams




                               NID 2010 - Portsmouth, NH
                Bandwidth costs

• Amazon EC2
   – $50 - $120/TB out, $0/TB in
• CDN (Internet radio)
   – $600/TB (2007)
   – $10-30/TB (Q1 2012 – CDNpricing.com)
• NetFlix (7 GB DVD)
   – postage $0.70 round-trip  $100/TB
• FedEx – 2 lb disk
   – 5 business days: $6.55
   – Standard overnight: $43.68
   – Barracuda disk: $91 - $116/TB

                                            5
                      The value of bits

• Technologist: A bit is a bit is a bit
• Economist: Some bits are more valuable than
  other bits
      – e.g., $(email) >> $(video)
Application           Volume              Cost per   Cost / MB   Cost / TB
                                          unit
Voice (13 kb/s GSM)   97.5 kB/minute      10c        $1.02       $1M
Mobile data           5 GB                $40        $0.008      $8,000
MMS (pictures)        < 300 KB, avg. 50   25c        $5.00       $5M
                      kB
SMS                   160 B               10c        $625        $625M
                                                                             6
                Principles

Transparency. Fixed and mobile broadband providers must disclose
the network management practices, performance characteristics,
and terms and conditions of their broadband services;


   No blocking. Fixed broadband providers may not block lawful content,
   applications, services, or non-harmful devices; mobile broadband
   providers may not block lawful websites, or block applications that
   compete with their voice or video telephony services


No unreasonable discrimination. Fixed broadband providers may
not unreasonably discriminate in transmitting lawful network
traffic.


                                                                    7
SPECTRUM
From beachfront spectrum to
    brownfield spectrum




                              9
From empty back yard to time share
             condo




                                     10
                 Spectral efficiency

• b/s/Hz: modulation, FEC,             • distribution efficiency
  MIMO, …                                 – unicast vs. multicast
• but also total spectral              • protocol efficiency
  efficiency                              – avoid polling  need server
   – guard bands                            mode
   – restrictions on adjacent          • mode efficiency
     channel usage                        – caching
   – “high power, high tower”            – side loading
     small cells  higher b/s/Hz
                                          – pre-loading
• data efficiency
   – e.g., H.264 is twice as good as
     MPEG-2/ATSC
   – and maybe H.265 twice as
     good as H.264


                                                                          11
        What can we do?

    end system caching
better audio & video codecs
       efficient apps



       IP multicast
       WiFi offload              small cells =
                               better spectral
                              efficiency + more
                                    re-use
spectral efficiency (LTE-A)
  directional antennas
general purpose spectrum
       dense cells                   LTE: 1.5 b/s/Hz
 white spaces & sharing              GSM: 0.1 b/s/Hz
                                                       12
                                                                                                                                                        cellular = about 500 MHz in total
                                                                                                                      U.S. Spectrum Allocation of Key Bands                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  July 14, 2011

                                                                Old                                                                                                                                                                                                                                                                                                                                              896                                               901                                 932                                                               935
                                                            Allocation
                                                                            698               710                        722            734       746          758         770         782                     794                       806                                                                         849                         851                                                            894                                                 902                              929                                                                    940                                                                IEEE Standard Band Designators
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    928                                                                      941
                                                                                        704                       716             728       740         752          764         776          788                              800                          817 824                                                                                862 869                                                                                                                                                                                                                                                                                                    HF                                          3-30 MHz
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              VHF                                         30-300 MHz




                                                                                                                                                                                                                                                                                                                                                                                                                                            900 SMR/B/ILT




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         900 SMR/B/ILT
                                                                                   52      53              54 55                  56   57   58   59   60       61 62     63   64    65       66          67               68           69




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Fixed Microwave
                                                                                                                                                                                                                                                                                                                                                                                                                                                                     ISM/




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Microwave
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              UHF                                         300-1000 MHz
 700 - 1000 MHz                                                                                                                                  TV Channels
                                                                                                                                                                                                                  Public
                                                                                                                                                                                                                                                                                                     Cellular
                                                                                                                                                                                                                                                                                                                                  Public
                                                                                                                                                                                                                                                                                                                                                                              Cellular                                                                           Unlicensed/




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Fixed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Paging
                                                                                                                                                                                                                                                                          Sprint




                                                                                                                                                                                                                                                                                                                                                        Sprint
                                                                                         Lower 700 MHz Band                                               Upper 700 MHz Band                                                                                                                                                                                                                                                                                      US Govt/                                                                                                                                                                                    L band                                      1-2 GHz
                                                                         TV                                                                                                                                       Safety/                                                                                                         Safety/                                                                                                                       Amateur Radio/                                                                                                                                                                                S band                                      2-4 GHz
                                                     New                            A        B                C         D         E    A    B    C         C      D Public               C               D Public
                                                                                                                                                                                                                   B/ILT                                                                                    A         B        AB B/ILT                                       A                                 B                AB                              Location &                                                                                                                                                                                   C band                                      4-8 GHz
                                                  Allocation                                                                                                             Safety                                           Safety                                                                                                                                                                                                                                 Monitoring                                                                                                                                                                                   X band                                      8-12 GHz
                                                                                                                                                                                                                                                                                                                                                   Commercial Aviation                                                                                                                                                                                                                                                                                        Ku band                                     12-18 GHz
                                                                                                                                                                                                                                                                                                                                                      Air-Ground                                                                                                              Fixed Microwave                                                                                                                                                                 K band                                      18-27 GHZ
                                                                                                                                                                         1 MHz Guard Bands                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Ka band                                     27-40 GHz
                                                                                                                                                                        A: 757-758/787-788 MHz                                                                                                                                                                                                                                                                                        Narrowband                                                                                                                                                              V band                                      40-75 GHz
                                                                                                                                                                        B: 775-776/805-806 MHz                                                                                                                                                                                                                                                                                            PCS
                                                                                                                                                                       PS: 763-775/793-805 MHz
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              W band                                      75-110 GHz
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              mm wave                                     110-300 GHz


 1500 - 1800 MHz                                                                                                                                                                                                                                                                                                          1670
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Legend
                                                                                1525                                                    1559                                              1610                               1626.5                                                                             1660.5              1675                                                                   1710                                                                                                              1755
                                                                                                                                                                                                         MSS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Uplink Band




                                                                                                                                                                                                                                                                                                                   Meteorological Aids
                                                                                                                                                                                                                                                                                                                   National Fixed/Mob
                                                                         Aeronautical




                                                                                         Mobile Satellite




                                                                                                                                                                                                                                                                                                                    Radio Astronomy/
                                                                                                                                                                                                                                            Mobile Satellite




                                                                                                                                                                                                                                                                                                                    Space Research/
                                                                                                                                                                                                       Big LEO                                                                                                                                                                                                                                              AWS-1
                                                                          Telemetry




                                                                                          (MSS) L-Band                                                        Global                                                                         (MSS) L-Band                                                                                                                                                                                                                                                                                                                                                                                                                                                 Downlink Band




                                                                                                                                                                                                  Globalstar
                                                                                                                                                                                                                                                                                                                                               Meteorological Aids/                                                                                                                                                                                        US Govt




                                                                                                                                                                                                                          Iridium
                                                                                                  LightSquared,                                             Positioning                                                                          LightSquared,




                                                                                                                                                                                                                                                                                                                                     OP Corp
                                                                                                                                                                                                                                                                                                                                                 Meteorological-
                                                                                                    Inmarsat                                               Satellite (GPS)                                                                         Inmarsat                                                                                                                                                                                                                                                                                                                                                                                                                                               TDD Band
                                                                                                                                                                                                                                                                                                                                                    Satellite                                                                    A                          B             C                 D        E                   F
                                                                                                                     ATC                                                                              ATC                                                                ATC
                                                                                                                                                                                                                                                                                                                                                                                                                                 1720 1730                                                           1745



 1800 - 2200 MHz
                     1850                                                           1910 1920 1930                                                                                      1990                                    2008                           2025                                                                                                                                                                                         2110                                                                                                                                                                                                                                      2200
                                                                                                                                                                                                          AWS-2 H Block




                                                                                                                                                                                                                                                          AWS-2 J Block
                                                                                                  AWS-2 H Block




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              AWS-2 J Block
                                      Broadband PCS                                                                                              Broadband PCS                                                                                                                                                                                                                                                                                                                                             AWS-1                                                                                                                                                  2 GHz MSS
                  US Govt




                                                                                                                                                                                                                           2 GHz MSS
                                                                                                                     Unlicensed




                                                                                                                                                                                                                                                                                                                       TV Aux Broadcast (BAS)
                                                                                                                                                                                             Sprint
                                                                                         Sprint




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          AWS-3
                                                                                                                        PCS




                                                                                                                                                                                                                                                                                                                        Government Satellite                                                                                                                                                                                                                                                                                                                                                              US Govt
                                                                                                                                                                                                                          TerreStar, DBSD                                                                                   And Others                                                                                                                                                      Advanced Wireless                                                                                                                                                 TerreStar, DBSD
                              A           D         B        E   F            C                                                         A        D      B            E    F        C                                                                                                                                                                                                                                                                                      A                    B    C D E     F
                                                                                                                                                                                                                               (DISH)                                                                                                                                                                                                                                                        Services (AWS I)                                                                                                                                                      (DISH)
                                                                                                                                                                                                                                       ATC                                                                                                                                                                                                                                                                                                                                                                                                                                               ATC
                                  1865                  1885 1895                          1915                                             1945               1965 1975                          2000                                           2020                                                                                                                                                                                                                           2120 2130                                                                2145 2155                                                                     2175
                                     1870                  1890                                                                                1950               1970                        1995

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Old
 2300 - 2700 MHz                                                                                                                                                                                                           2506                2518                        2530                                 2542         2554                2566            2578                          2590                              2602                           2614                            2626                          2638                                       2650                     2662                        2674                               2686                                   Allocation

                                  2305             2320                  2345                     2360                                                                                                   2500                          2512             2524                                 2536                  2548                  2560          2572                   2584                              2596                           2608                         2620                              2632                                   2644                             2656                         2668                       2680                                     2690




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               EBS G3 R Channel
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         ITFS G1



                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  BRS H1 ITFS G2


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             BRS H3 ITFS G3
                                                                                                                                                                                                                                                        EBS B1 ITFS B2
                                                                                                                                                                                                                          ITFS A1




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              EBS G2 ITFS G4
                                                                                                                                                                                                                                       EBS A2 ITFS B1
                                                                                                                                                                                                                                       EBS A3 ITFS A2


                                                                                                                                                                                                                                                                          EBS B2 ITFS A3




                                                                                                                                                                                                                                                                                                                     ITFS B4
                                                                                                                                                                                                                                                                                                                     ITFS C1




                                                                                                                                                                                                                                                                                                             J Guard ITFS D2
                                                                                                                                                                                                                                                                                           EBS B3 ITFS B3
                                                                                                                                                                                                                                                                                                            EBS C1 ITFS A4




                                                                                                                                                                                                                                                                                                                     ITFS D1
                                                                                                                                                                                                                                                                                                                     ITFS C2


                                                                                                                                                                                                                                                                                                                                                             EBS A4 ITFS C3




                                                                                                                                                                                                                                                                                                                                                                                                                EBS D4 ITFS D4
                                                                                                                                                                                                                                                                                                                                                                              EBS B4 ITFS D3
                                                                                                                                                                                                                                                                                                                                                                                               EBS C4 ITFS C4




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      MMDS H1




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   MMDS H2
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                MMDS E3




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               MMDS H3
                                                                                                                                                                                         ISM/




                                                                                                                                                                                                                                                                                                                                                                                                                                  MMDS E1



                                                                                                                                                                                                                                                                                                                                                                                                                                                                MMDS E2




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               MMDS F3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  MMDS E4
                                                                                                                                                                                                                                                                                                                                                                                                                                                MMDS F1



                                                                                                                                                                                                                                                                                                                                                                                                                                                                          K Guard MMDS F2




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     MMDS F4
                                                                                                                  Aeronautical
                                                                                                                   Telemetry




                                      WCS                                           WCS                                                                                                  MSS
                                                                                                                                                                        ISM/
                            Amateur




                                                          DARS                                                                                                                         Big LEO
                             Radio




                                                                                                                                                                     Unlicensed                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Fixed - Satellite /
                                                                                                                                                                                       Globalstar                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Radio Astronomy /




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   BRS H2
                                                                                                                                                                                                                                                                                                            EBS C2
                                                                                                                                                                                                                              EBS A1




                                                                                                                                                                                                                                                                                                            EBS D2




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         BRS E2




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             BRS F2




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              EBS G1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          BRS E1


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            BRS E3




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         BRS F3
                                                                                                                                                                                                                                                                                                            EBS C3
                                                                                                                                                                                                                                                                                                            EBS D1




                                                                                                                                                                                                                                                                                                                                                                                                                                 EBS G4


                                                                                                                                                                                                                                                                                                                                                                                                                                                                BRS E4




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           BRS F1
                                                                                                                                                                                                                                                                                                            EBS D3




                                                                                                                                                                                                                                                                                                                                                                                                                                               BRS F4
                                                                                                                                                                                                                 BRS 1




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            BRS 2
                                                          Sirius Radio
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Space Research
                                      A       B    C                              D      A        B
                                                                                                                                                                                        ATC

                                                                                                                                                                              2483.5 2495 2502                                           2513             2524                             2535                   2546             2557           2568           2578                            2590                             2602                          2614                         2624                        2635                              2646                          2657                      2668                       2679                             2690

                                                                                                                                                                                  2487.5 2496                               2507.5 2518.5 2529.5 2540.5 2551.5 2562.5 2572                                                                                                       2584                               2596                          2608 2618                                               2629.5 2640.5 2651.5 2662.5 2673.5 2684.5                                                                                                                                                  New Allocation
 Source: FCC, Sprint and Stifel Nicolaus Research
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        13
Stifel Nicolaus does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could
affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.
Unlicensed & lightly-licensed bands
                (US)

• UHF (476-700 MHz) – incentive auctions
  (licensed) + some unlicensed
• 2.4 GHz (73 MHz) – 802.11b/g
• 3.6 GHz (100 MHz) – for backhaul & WISPs
• 4.9 GHz (50 MHz) – public safety
• 5.8 GHz (400 MHz) – 802.11 a/n
  – much less crowded than 2.4 GHz
  – supported by many laptops, few smartphones


                                                 14
2.4 vs. 5.8 GHz
Freeing spectrum: incentive auctions

• Incentive auctions will                  Adjacent Channel
                                             Interference
  share auction proceeds
  with the current occupant
  to motivate voluntary
  relocation of incumbents    TV      BB      TV     BB       TV   TV

   – Otherwise, no
     incentive for                     Without Realignment:

     current occupant to           Reduced Broadband Bandwidth


     give back spectrum               Adjacent Channel
                                        Interference
   – Stations keep current
     channel numbers
       • via DTV map          TV       TV      TV     TV       BB



                                   With Realignment: Accommodates
                                    Increased Broadband Bandwidth
                                                                        16
        Small cell alternatives

• Femto cells
   – use existing spectrum                      Cellular
   – need additional equipment
• WiFi off-load
                                            Femto-cells
   – use existing residential
     equipment
   – 5G networks =
     heterogeneous networks?
• Distributed antenna
  systems                        Distributed Antenna Systems
                                  Signals are distributed throughout the
                                     Building via amplifiers/antennas


                                                                           17
                                  TV white spaces

          • TV channels are “allotted” to cities to serve the local area
          • Other licensed and unlicensed services are also in TV bands
          • “White Spaces” are the channels that are “unused” at any
                given location by licensed devices

                                                  Non-
                    2                  4        Broadcast    5      White    7                       9
                                                spectrum            Space
                            Low                                                       Wireless
                          Power TV                                                  Microphones
New York City                                                                                                        Etc.
 Full Power
 TV Stations                               Only for illustrative purposes


                  White                           Non-      White           White
                  Space       3                 Broadcast
                                                spectrum
                                                            Space    6      Space       8                       10
                                       Low                                                          Wireless
                                     Power TV                                                     Microphones
 Philadelphia
  Full Power
                                                                                                                     Etc.
 TV Stations
          Spectrum Outlook

• No single solution:
  – reduce spectrum usage
     • caching & better modulation
  – re-use spectrum
  – re-cycle old spectrum




                                     19
BROADBAND
                   Broadband

• Deployment
   – USF: Connect America Fund
• Performance
   – Measuring Broadband America
   – mobile tba
• Significant progress:
   – wider availability of 100 Mb/s
   – fiber available to 46 million homes (FiOS, Uverse)
   – community/non-traditional broadband (Chattanooga,
     KC)
   – LTE networks
                   What Was Measured

Sustained Download         Burst Download
Sustained Upload           Burst Upload
Web Browsing Download      UDP Latency
UDP Packet Loss            Video Streaming Measure
VoIP Measure               DNS Resolution
DNS Failures               ICMP Latency
ICMP Packet Loss           Latency Under Load
Total Bytes Downloaded     Total Bytes Uploaded
Advertised vs. actual 2012




                             23
Significantly better than 2011
Latency by technology




                        25
Data usage




             26
                     Broadband adoption




                                                27
Eighth Broadband Progress Report, August 2012
                       Access to broadband

                                                     Chart 1
                                           Households With Access to the
                                 Fixed Broadband Speed Benchmark by Technology

               Any Fi xed

                   Cable

                     DSL

           Fixed Wireless

            Other Copper

                   Fi ber

                            0%           20%        40%          60%        80%   100%



                                                                                         28
Eighth Broadband Progress Report, August 2012
FTTH
     In Figure 3(b), we estimate the percentages of households in census tracts where providers reported

                           State of competition (US)
     residential fixed-location connections of different speeds or operated a mobile wireless network capable
     of sending or receiving data at the indicated speeds.


                                                 Figure 3(b)
                Percentages of Households Located in Census Tracts Where Providers Report
      Residential Fixed-Location Connections of Various Speeds or Operate a Mobile Wireless Network
                  Capable of Delivering Service of Various Speeds as of December 31, 2009
                100

                  90

                  80

                  70

                  60

                  50

                  40

                  30

                  20

                  10

                      0
                             At least 3 mbps       At least 3 mbps    At least 6 mbps      At least 10 mbps
                          downstream & over 200   downstream & 768   downstream & 1.5     downstream & 1.5
                             kbps upstream          kbps upstream     mbps upstream        mbps upstream
         3+ Providers              58                   40                  3                    2
         2 Providers               35                   40                 22                    20
         1 Provider                6                    17                 56                    58
         0 Providers               1                     3                 18                    21

       Figures may not sum Services Status as
FCC: Internet Access to 100% due to rounding. of December 31, 2009
      speed of 10.72 Mbps. The two lowest price countries are Slovakia and Italy with an average net price
      of approximately $21. These countries report average download speed of 10 Mbps. The two highest

                       International comparison: fixed
      price countries are Mexico and Switzerland with net prices of $95.60 and $185 respectively. Appendix
      Table 2b shows the breakdown by technology in this speed tier. The United States is 9th amid 24
      countries having DSL plans, with an average net price of $40.80 per month. The lowest average price
      is in Sweden ($25.30) and the highest is in Switzerland ($185). The United States cable and fiber plans
      average $44.75 and $54.99 respectively. See Appendix Table 2b for prices in other countries.


                                                                           Figure 2c
                                               Average Monthly Net Price ($ PPP) of Residental (Fixed) Standalone
                                                                       Broadband 2011
                                                               15-25 Mbps of Download Speed

                                         180
             Monthly Net Price ($ PPP)




                                         160
                                         140
                                         120
                                         100
                                          80
                                          60
                                          40
                                          20
                                           0




      Note: The monthly net price reflects the price per month, including rebates, installation charges, equipment
      charges such as modem rentals and other fees. So this is different from the simple monthly advertised price. The   31
3rd International Broadband by a simple average over all technologies, excluding satellite, in the 15-25 Mbps peed
      average price is obtained Data Report (IBDR), August 2012
                                                               Federal Communications Commission                  DA 12-1334

          International comparison: mobile
             Figures 7a-10a shows the net price per gigabyte of data for plans with usage limits, and Figures 7b-10b
             reports the average monthly net price for unlimited data plans.


                                                    100                    Figure 7a
                                                          Average Monthly Net Price per GB of Data 2011
                                                    90      Smartphone Data Plans with Usage Limits
                   Price per GB of Data ($PPP/GB)



                                                    80
                                                    70
                                                    60
                                                    50
                                                    40
                                                    30
                                                    20
                                                    10
                                                     0




             Note: Belgium does not have any limited data plans in the sample. Japan charges by the amount of
             packets sent, so we assumed 1 packet = 128 bytes according to the advertised plan. These prices are for     32
3rd International Broadband Datado not include the price of the phone plan or devicee
             the data plan only and Report (IBDR), August 2012                        a
                                                                                      m
                                                                                      rcharge.
                  Need for speed

• Networks should be transparent 
   – don’t interfere with application
   – don’t limit performance
• Peak speed + upstream bandwidth 
  important for productive rather than
  consumptive applications
• Local area networks: 100 Mb/s or 1
  Gb/s
• Cost of hybrid fiber-X networks largely
  independent of peak speed
   – wide-area traffic: $2-5/month for 100 GB
            Broadband challenges

• Engineering
   – simplify deployment: “fiberhoods”, self
     installation, on-pole wireless, …
• Economical
   – cost is driven by homes passed, not homes
     served
   – cost mostly independent of speed  single price
     point?
   – built-in broadband, not bolted on
       • pay via mortgage  lower ROI expectations
• Policy
   – FCC: “dig once”, pole attachments, Federal
     buildings and lands
   – encourage municipal conduit deployment
          Broadband virtuous cycle

                        adoption                         fixed
                         (relevance,                  broadband
                            value)                    investment




            applications                                 cellular broadband
                (incl. OTT)                                   (backhaul)




OI principles                          broadband
                                       availability
 Broadband cost


                  30%
70%
Maybe revisit?




                 Google
                 April 1, 2007
Water + broadband
       Broadband opportunities

• Middle-mile networks
• BTOP experiences
  – conduit, fiber or IP?
• Connect America Fund (part of $8B/year USF)
• Adoption = availability + affordability +
  relevance
                      Budgeting the CAF




       – The $4.5B annual budget will transition while CAF Phase II, Mobility Phase II
         and Remote Areas Fund are implemented


                                                                                              40
Ken Mason                                                                                40
Easing the PSTN into the 21st
          century

                    Henning Schulzrinne




                                          41
           PSTN: The good & the ugly
The good                                  The ugly

Global Connectivity (across devices and   Minimalist service
providers)
High reliability                          Limited quality (4 kHz)
(engineering, power)
Ease of use                               Hard to control reachability
                                          (ring at 2 am)
Emergency usage                           Operator trunks!
Universal access                          No universal text & video
(HAC, TTY, VRS)
Mostly private                            Limited authentication
(protected content & CPNI)                Security more legal than technical
                                          (“trust us, we’re a carrier”)
Relatively cheap                          Relatively expensive
(c/minute)                                ($/MB)
                                                                               42
                What are key attributes?
•   Universality
     – reachability  global numbering & interconnection
     – media  HD audio, video, text
     – availability  universal service regardless of
           •   geography
           •   income
           •   disability
     – affordability  service competition + affordable standalone broadband
•   Public safety
     –   citizen-to-authority: emergency services (911)
     –   authority-to-citizen: alerting
     –   law enforcement
     –   survivable (facilities redundancy, power outages)
•   Quality
     –   media (voice + …) quality
     –   assured identity
     –   assured privacy (CPNI)
     –   accountable reliability



                                                                               43
        What is less important?
                                                              Signaling      Media

• Technology                                        Analog    circuit (A)    circuit (A)


  – wired vs. wireless                              Digital   circuit (D)    circuit (D)

                                                    AIN       packet (SS7)   circuit (D)
     • but: maintain quality if substitute rather
                                                    VoIP      packet (SIP)   packet (RTP)
       than supplement
  – packet vs. circuit
  – “facilities-based” vs. “over-the-top”
     • distinction may blur if QoS as a
       separable service
• Economic organization
  – “telecommunication carrier”
                                                                                  44
                Going forward
• Interconnected VoIP: done
   – CALEA, USF, E911
   – Part 4 outage reporting
• In progress                                … , we expect all carriers to
                                             negotiate in good faith in response
   – Intercarrier compensation: IP           to requests for IP-to-IP
                                             interconnection for the exchange of
     interconnection expectation +           voice traffic. The duty to negotiate in
     transition to bill-and-keep             good faith has been a longstanding
                                             element of interconnection
   – NG911, better location                  requirements under the
                                             Communications Act and does not
   – video relay services, CVAA              depend upon the network
                                             technology underlying the
• To do                                      interconnection,
                                             whether TDM, IP, or otherwise.
   – numbering & databases                   Moreover, we expect such good faith
                                             negotiations to result in
   – security model (robocalls, text spam,   interconnection arrangements
     vishing)                                between IP networks for the purpose
                                             of exchanging voice traffic.
   – VoIP interconnection model
                 Conclusion

• Dramatic transition of technology
  – special purpose  general purpose
  – stove pipes  IP
  – narrowband  broadband
  – digital PSTN  IP PSTN
• Wireline + wireless deployment



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