Japan: one Gigabit/sec for $40 a month

Norie Kuboyama and Tomomi Sekioka:

Softbank, the second-largest provider of high-speed Internet access in Japan, said Monday that Yahoo Japan and Softbank BB would start offering a new optical fiber-based broadband service. Softbank will provide the service at speeds of up to one gigabyte per second and charge users ?4,200, or $38, a month, the company said in a statement.
(Surely this is a typo — the word here has to be Gigabit.)
Softbank and NTT, the nation’s former state monopoly for domestic telephone services, are competing to become Japan’s largest provider of high-speed Internet access . . . NTT last week said that it would cut its basic monthly fee by ?50 in order to compete with Softbank and KDDI, Japan’s second-largest mobile phone company.

Via David Isenberg

Cisco CEO Chambers calls for education reform & broadband push

Chambers did not get specific with respect to education reform, but did mention some problematic data:

  • Fewer than 6 percent of master’s degrees issued in the U.S. in 2001-02 were in engineering, and fewer than 1 percent were in math, Chambers noted.
  • The U.S. is also lagging behind most industrialized nations in broadband adoption, Chambers said. Japanese consumers have access to broadband speeds 400 percent to 500 percent faster than in the U.S., he said. “We’ve got to move faster,” Chambers added.

David Isenberg summarizes Japan’s successful broadband approach here. He also notes that the US has fallen to thirteenth vis a vis other nation’s broadband adoption rate.

Wisconsin State Priorities?


The State Journal editorial page takes Wisconsin Attorney General Peg Lautenschlager to task for joining with six other states and New York City to sue five of the country’s largest power producers to force them to cut carbon dioxide emissions. This is the same organization that, under Democrat Jim Doyle signed us up for the Matrix personal data mining project – then later withdrew.
Keeping the environment clean is certainly important, but the WSJ raises some useful issues on this topic. I believe that our state leadership is ignorning (for political reasons) the most important economic issues of our time, such as the construction of true high speed networks.
High speed data networks are the rails and roads of the future. Yet, today, we are saddled with slow services supported by local telco monopoly SBC.
Verizon just announced that fiber to the premises (“fttp” or to the home) will be available in Keller, Texas, parts of Southern California and Florida. Prices will range start at $40/month for 2 to 5mbps service; with optional speeds up to 30mbps. (Currently, many state residents can choose from 384kbps to 1.5mbps DSL or cable service – 1/10th the speed, or less of the fibre based products).
These speeds make high quality personal video conferencing a reality (family & friends), new small businesses from the home possible and most importantly, will reduce the cost of true high speed access for all residents.
Nice to see our politicians are paying attention.
David Isenberg has some useful examples of “value-subtracted” telco business models. Isenberg also discusses a May, 2004 study that shows a dramatic reduction in telco operating expenses after they switch from a copper wire based network to a fibre system.

Fiber to the Home?

Stanley Miller’s article on SBC’s Oconomowoc fiber to the home project (Paved over Pabst Farms new developments only) provides a useful look at what’s possible, if the monopolistic telco’s ever are motivated to provide reasonable internet speeds (Japan and Korea already have very large scale, inexpensive deployments at these speeds). We in the tech industry refer to these type of projects as demoware.
David Isenberg reviews an interesting recent study (May, 2004) by Telcordia and Sanfor Bernstein (investment houses) called Fiber: Revolutionizing the Bell’s Telecom Networks. The study claims that fiber to the premises (FTTP) would reduce (by 30 to 90%!! the telco’s operating expenses (in other words, pay for itself over time, vs. the high costs of maintaining their aging copper networks. Interesting reading.
This is a critical economic development issue. Unfortunately, our politicians seem to have their head in the sand on this (SBC status quo lobbying helps, no doubt). I mentioned this issue to then candidate Jim Doyle at a pre election debate: “SBC’s telco stranglehold on Wisconsin is a major economic development problem” He replied (paraphrased); “you’re right, but we have other economic problems to address first”. I think he has this wrong. True high speed bi directional connectivity opens up enourmous new business opportunies.