Broadband open access
Encyclopedia
Broadband open access is an issue of policy debate
in telecommunications, regarding whether or not companies which own broadband telecommunication infrastructure (such as cable operators) should be required to provide access to their facilities for competing businesses which do not own physical infrastructure. The issue came to the fore in the U.S.
in 1998, when AT&T
announced its plan to acquire TCI
, then the nation's largest cable operator. It involved municipal and local governments, the courts, Federal Communications Commission
(the FCC), Congress, businesses, industry associations, consumer advocacy groups, and many others. Similar issues arose in other countries such as the Netherlands
, Hungary
, and Canada
.
In the United States, cable operators were not required to provide access to their facilities to other competing businesses. However, local telephone providers with physical infrastructure, or Incumbent Local Exchange Carriers
(ILECs), had such an obligation. This asymmetrical scheme of regulation became a problem when the two industries' businesses came to overlap and the boundary between them eroded. This transformation of industrial landscape, often called convergence, happened in the broadband Internet service provider
market. To make matters worse, the cable operators were the leading camp although local telephone carriers were burdened by the open-access obligation.
Broadband high-speed internet has become a worldwide breakthrough for telecommunication
services. The service has become crucial for businesses to be able to communicate with customers and is on the verge of being a standard public utility
verses a luxury for residents. Although other services are still offered, like dial-up internet access or satellite internet access
, broadband internet is the most convenient and fastest mode of telecommunications. With broadband open access, the popularity of this service is in great demand. The debate of making incumbent
cable operators obligated to allow competitors to wire into their infrastructure
is comparable to the Bell Operating Company (BOC) issue that split into the Regional Bell Operating Companies (RBOCs). Leading cable operators can easily avoid competition due to reasons such as lack of funding for those competitors to build their own backbone network, or even the lack of space available.
For the past couple of years now, President Barack Obama
has set out to try to resolve these issues. On February 10, 2011, he announced plans to expand wireless Internet access. This plan intends to provide high-speed wireless services to 98 percent of Americans or more. The idea behind this is to increase education among Americans, build businesses and profit, and support state-of-the-art technology for state officials. In terms of broadband open access, the plan will be deployed by leading carriers of high-speed internet. However, the debate may still remain of how this helps the incoming service provider
or smaller companies that already exist. Will small companies earn profit if the country is provided Internet through the leading companies?
Broadband open access has also brought on many questions of how services to competition is offered, such as unbundled access
services sold to the new company. This includes services that can be hard to duplicate. The concept is like what service providers offer their own customers and having television
, voice, and internet service bundled into one package. Any competitor may rent office space in an incumbent's central office, place equipment to interconnect with their network, or purchase other related services. The company can offer the same deal to a competing company requesting use of their network and facilities. The new entrant has a right to purchase access to the incumbent on an unbundled basis. Getting unbundled services means the new entrant has the opportunity to invest in its own network and therefore spend less on buying everything wholesale
. They are able to make a profit
using their own equipment and do not have spend it all on the incumbent hardware
and software provided.
Policy debate
Policy debate is a form of speech competition in which teams of two advocate for and against a resolution that typically calls for policy change by the United States federal government or security discourse...
in telecommunications, regarding whether or not companies which own broadband telecommunication infrastructure (such as cable operators) should be required to provide access to their facilities for competing businesses which do not own physical infrastructure. The issue came to the fore in the U.S.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in 1998, when AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
announced its plan to acquire TCI
TCI
-Medicine:*Transient Cerebral Ischaemic attack, see Transient ischemic attack*Tricyclic antidepressant medication*Target Controlled Infusion, a method for controlling intravenous infusions.-Psychology:*Theme-Centered Interaction, a method of psychotherapy by Dr...
, then the nation's largest cable operator. It involved municipal and local governments, the courts, Federal Communications Commission
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
(the FCC), Congress, businesses, industry associations, consumer advocacy groups, and many others. Similar issues arose in other countries such as the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
.
In the United States, cable operators were not required to provide access to their facilities to other competing businesses. However, local telephone providers with physical infrastructure, or Incumbent Local Exchange Carriers
Incumbent local exchange carrier
An ILEC, short for incumbent local exchange carrier, is a local telephone company in the United States that was in existence at the time of the breakup of AT&T into the Regional Bell Operating Companies , also known as the "Baby Bells." The ILEC is the former Bell System or Independent Telephone...
(ILECs), had such an obligation. This asymmetrical scheme of regulation became a problem when the two industries' businesses came to overlap and the boundary between them eroded. This transformation of industrial landscape, often called convergence, happened in the broadband Internet service provider
Internet service provider
An Internet service provider is a company that provides access to the Internet. Access ISPs directly connect customers to the Internet using copper wires, wireless or fiber-optic connections. Hosting ISPs lease server space for smaller businesses and host other people servers...
market. To make matters worse, the cable operators were the leading camp although local telephone carriers were burdened by the open-access obligation.
Broadband high-speed internet has become a worldwide breakthrough for telecommunication
Telecommunication
Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...
services. The service has become crucial for businesses to be able to communicate with customers and is on the verge of being a standard public utility
Public utility
A public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...
verses a luxury for residents. Although other services are still offered, like dial-up internet access or satellite internet access
Satellite Internet access
Satellite Internet access is Internet access provided through satellites. The service can be provided to users world-wide through low Earth orbit satellites. Geostationary satellites can offer higher data speeds, but their signals can not reach some polar regions of the world...
, broadband internet is the most convenient and fastest mode of telecommunications. With broadband open access, the popularity of this service is in great demand. The debate of making incumbent
Incumbent
The incumbent, in politics, is the existing holder of a political office. This term is usually used in reference to elections, in which races can often be defined as being between an incumbent and non-incumbent. For example, in the 2004 United States presidential election, George W...
cable operators obligated to allow competitors to wire into their infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
is comparable to the Bell Operating Company (BOC) issue that split into the Regional Bell Operating Companies (RBOCs). Leading cable operators can easily avoid competition due to reasons such as lack of funding for those competitors to build their own backbone network, or even the lack of space available.
For the past couple of years now, President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
has set out to try to resolve these issues. On February 10, 2011, he announced plans to expand wireless Internet access. This plan intends to provide high-speed wireless services to 98 percent of Americans or more. The idea behind this is to increase education among Americans, build businesses and profit, and support state-of-the-art technology for state officials. In terms of broadband open access, the plan will be deployed by leading carriers of high-speed internet. However, the debate may still remain of how this helps the incoming service provider
Service provider
A service provider is an entity that provides services to other entities. Usually, this refers to a business that provides subscription or web service to other businesses or individuals. Examples of these services include Internet access, Mobile phone operators, and web application hosting...
or smaller companies that already exist. Will small companies earn profit if the country is provided Internet through the leading companies?
Broadband open access has also brought on many questions of how services to competition is offered, such as unbundled access
Unbundled Access
Unbundled access is an often practiced form of regulation during liberalization, where new entrants of the market are offered access to facilities of the incumbent, that are hard to duplicate...
services sold to the new company. This includes services that can be hard to duplicate. The concept is like what service providers offer their own customers and having television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
, voice, and internet service bundled into one package. Any competitor may rent office space in an incumbent's central office, place equipment to interconnect with their network, or purchase other related services. The company can offer the same deal to a competing company requesting use of their network and facilities. The new entrant has a right to purchase access to the incumbent on an unbundled basis. Getting unbundled services means the new entrant has the opportunity to invest in its own network and therefore spend less on buying everything wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
. They are able to make a profit
Profit (economics)
In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs of a venture to an entrepreneur or investor, whilst economic profit In economics, the term profit has two related but distinct meanings. Normal profit represents the total...
using their own equipment and do not have spend it all on the incumbent hardware
Hardware
Hardware is a general term for equipment such as keys, locks, hinges, latches, handles, wire, chains, plumbing supplies, tools, utensils, cutlery and machine parts. Household hardware is typically sold in hardware stores....
and software provided.