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Getting to "Big Broadband"
Optoelectronics Industry Development Association, July 2004, Pages: 82
EXECUTIVE SUMMARY
INTRODUCTION
Japan Defines the Future Advanced Telecom Infrastructure
BROADBAND BACKGROUND
Technology Options for Access Networks
Cable modems
DSL
Wireless
Fiber
Business Model Issues for Broadband
Strategic Stalemate in the U.S.
The Analytic Framework
Blocking Natural Monopoly through End-User-Ownership (E-U-O)
LESSONS FROM ABROAD
Insights from Asia
Macro Economic Impacts in Korea and Japan
Asian Dynamics
The South Korean Saga
Three Phases of South Korea’s Telecom Strategy
An Interpretation of the Developments in South Korea
Japan
FTTH Moves into Mainstream in Japan
Price War Heats-Up in Japan
Alberta SuperNet and AXIA-France
Alberta SuperNet
Axia in France - France Breaks its Stalemate
France Has Joined Canada in Deploying Clear Examples of the New Paradigm of Telecom Infrastructure
BROADBAND IN THE U.S. TODAY
Technology Moves Faster than Private or Public Policies
Threats to ILEC Revenues
ILEC Response to Loss of Customer Base
Three Reasons why ILEC’s Approach is Problematic
Something More Is Needed
Medium Broadband
Something More Is Possible
A Foreboding of the Future
THE UNDERLYING ECONOMICS
Knowledge Goods for Knowledge Workers Revisited
Asymmetric Pricing for INS Goods
Review and Restatement: Powerful Implications of a Marginal Cost Equal to Zero
Applying this General Discussion to the Deployment of Telecommunications Networks Including Advanced Fiber Networks
GETTING TO BIG BROADBAND
Big Broadband in Prototype
NLR
NEREN
Statewide Education Networks
CENIC: One Gigabit or Bust! ™
Utopia
We Have the Resources Now
Access Fees
Roadmap for End-User-Owned AFN Deployment
Phase 1: Enterprises Accrue Internalized Benefits through AFN Build-Outs
Phase 2: Enterprise Networks Create a Plethora of Junction Points
Phase 3: End Users Create and Own Connections to Junction Points
Prerequisites for E-U-O AFN Deployment
Affordable End-User Price Points
Micro-conduit
CONCLUSIONS AND RECOMMENDATIONS
Supporting Players
Implications for the U.S
Accepting the Gauntlet
AFTERWORD: A U.S. FTTH SCENARIO
APPENDICES
Appendix A: The Economics of Resources That Are Inherently Not Scarce (INS)
Knowledge Goods and Knowledge Workers
Distortions Introduced By Accounting Conventions, e.g., “Average Cost”
Economic Realities that Conflict With Accounting Conventions
Asymmetric Pricing
Appendix B: Natural Monopoly and the AFN
Competitive Market
The Firm at Equilibrium
Natural Monopoly vs Standard Market
Pricing the AFN
Equations for Optimizing Monopoly Profit
Appendix C; OIDA Comments on FCC Notice of Inquiry Regarding Broadband
Appendix D: Workshop Agenda
Appendix E: Workshop Participants
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