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‘Dig Once’ Provides Future-Proofing Solution for Federal Highway Infrastructure, Says BroadbandNow

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Photo courtesy BroadbandNow.

WASHINGTON, August 7, 2019 – Investment in future-proofing roads for high-speed fiber optic infrastructure could save $126 billion federal dollars on broadband deployment.

But Congress has yet to pass any legislation in support of “dig once” conduit building, according to a recent report from Broadband Now.

Federal highway and road projects are notoriously overbudgeted, said Tyler Cooper, editor at Broadband Now. He said it is difficult to understand why Congress is hesitant to act upon cost-reducing measures.

The report outlined “dig once” concept currently utilized by several states and cities. Some variations of the “dig once” practice would mandate the inclusion of broadband conduit, which can be used to more easily install fiber-optic communications cable.

By eliminating the need to dig up recently paved roads to expand broadband infrastructure, the federal government could significantly reduce the cost of building out internet access to underserved communities across the country, said BroadbandNow.

Goldman Sachs calculated that the cost of implementing the dig once practice would be an estimated $14 billion dollars.

Yet progress at the national level has stalled completely, said the report. In 2018, the Broadband Conduit Deployment Act was introduced but ultimately failed to pass. Several iterations of this act were introduced in 2009, 2011 and 2015, but were indefinitely stalled at national and state levels. Only 11 states and 18 cities in the country have implemented dig-once policies.

Moreover, he said, incumbent national telecom providers have been known to react negatively to this legislation. A dig-once policy would make it easier for smaller broadband providers with fewer resources to compete in the fiber market.

Other forms of broadband deployment measures face obstacles at the local level. About 26 states currently block some or all forms of municipal broadband networks. These networks enable communities to have public alternatives to exclusively relying upon private telecom companies.

(Photo courtesy BroadbandNow.)

Open Access

Financing Mechanisms for Community Broadband, Panel 3 at Digital Infrastructure Investment

Panel 3 video. Join the Broadband Breakfast Club to watch the full-length videos from Digital Infrastructure Investment.

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Video from Panel 3 at Digital Infrastructure Investment: Kim McKinley, Chief Marketing Officer, UTOPIA Fiber, Jeff Christensen, President & CEO, EntryPoint Networks, Jane Coffin, Chief Community Officer, Connect Humanity, Robert Wack, former Westminster Common Council President and leader of the Open Access Citywide Fiber Network Initiative, and moderated by Christopher Mitchell, Director, Community Broadband Networks, Institute for Local Self-Reliance

For a free article summarizing the event, see Communities Need Governance Seat on Broadband Builds, Conference Hears: Communities need to be involved in decision-making when it comes to broadband builds, Broadband Breakfast, November 17, 2022

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Fiber Providers Need to Go Beyond Speed for Differentiation, Consultant Says

40 percent are unsure of their home internet speeds, said Jonathan Chaplin of New Street Research.

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Photo of Jonathan Chaplin, managing partner at New Street Research

WASHINGTON, November 9, 2022 – Despite fiber’s fast broadband speeds, providers must innovate and offer other benefits – like content bundling – to maintain market share as customers increasingly make purchasing decisions based on non-speed factors, argued Jonathan Chaplin, managing partner at New Street Research, a telecommunications and technology research firm.

“Our message to the cable industry is: Stop marketing on speed, put everybody on the gigabit tier, and start differentiating on everything else,” Chaplin said at a Fiber Broadband Association event Wednesday.

Chaplin also urged fiber providers to prepare to enter the wireless market, saying that wireless and broadband will soon “converge into one marketplace.

“It’s not a major differentiator or driver of consumers’ decisions today, but you need to start working on this as a product category to be ready for it by the time it [is],” he added.

And raw speed won’t be enough to attract customers, Chaplin argued. Although consumers say speed and price are the two top factors when considering internet plans, he said, his research shows that 40 percent are unsure of their home internet speeds.

Typical speeds have greatly increased in recent years, and Chaplin said faster service provides no perceptible benefit to most customers once certain speeds are reached. According to his data, “Increases in speed (above 200 Mbps) really have no impact on the satisfaction of a household with their broadband provider.”

Fixed-wireless uptake shows speed isn’t always king

The rise of fixed-wireless providers, who usually don’t advertise on speed, further demonstrates that consumers are willing to make purchase decisions on other factors, Chaplin argued. In fact, his research shows that many new fixed-wireless customers did not make the switch due to speed complaints.

“If you’re in the fiber business, you’re in a strong position. You’ve got a product that wins in the market today, but you cannot afford to be complacent,” Chaplin said. “The battleground for consumers is going to shift and you need to be ready for shift when it comes,” he added.

The Federal Communications Commission is considering a proposal to mandate “broadband nutrition labels,” which proponents say would help consumers understand the details of their internet plans. Researchers at the TPRC 2022 conference in September suggested that such labels should include “interpretive” data to explain the real-world implications of technical metrics. TPRC speakers also echoed Chaplin’s claim increased speeds do not necessarily correlate with higher customer satisfaction rates.

Industry players differ on substantive policy points surrounding the proposal, however, including whether labels should be mandatorily included on month internet bills.

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Fiber

COVID Funds Ensuring NTIA Broadband Infrastructure Funding Adequate: Conexon Executive

‘The way you close the digital divide is you build fiber to every single rural home,’ Jonathan Chambers said.

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Photo of Jonathan Chambers, partner at Conexon

WASHINGTON, October 17, 2022 – Millions of dollars from the American Rescue Plan Act, which are currently being deployed by states to extend broadband networks, is helping ensure that new broadband money allocated from the Infrastructure, Investment and Jobs Act will be sufficient to extend fiber to all homes in America, said a telecom executive on a Fiber Broadband Association web event Wednesday.

Since many states are using ARPA funding to deploy new networks, fewer than ten million locations will “be left for BEAD after ARPA,” said Jonathan Chambers, partner at rural internet service provider co-op Conexon, referring to the $42.5 billion Broadband Equity, Access, and Deployment program of the National Telecommunications and Information Administration.

Since the American Rescue Plan became law in March 2021, federal programs – including the Capital Projects Fund and the Emergency Connectivity Program – and state governments have put tens of billions of ARPA-appropriated dollars towards broadband various projects.

Chambers, whose company builds fiber networks and works primarily with rural electric cooperatives, said he wants to refute the arguments of fiber skeptics by going “to the hardest-to-serve, poorest places in the country and demonstrate you can build fiber there,” saying the company is working to build a fiber network to every home and business in East Carrol Parish, Louisiana.

An argument against fiber builds in rural areas has been the expense required to do so.

The BEAD program will dispense block grants to the states based on relative need. States will issue subgrants for broadband infrastructure and other projects. Pro-fiber advocates like Chambers and FBA President Gary Bolton support using these funds primarily for fiber deployments.

“The way you close the digital divide is you build fiber to every single rural home,” Chambers said.

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