Broadband rulings draw user concerns

NETWORK WORLD NEWSLETTER: OPTICAL NETWORKING
08/17/05

Dear networking.world@gmail.com,

In this issue:

* Users react to FCC, Supreme Court decisions
* Links related to Optical Networking
* Featured reader resource
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MOBILE MANAGEMENT

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devices to stay connected, access important data and communicate
more effectively. But there are increased security risks. This
NW Face Off gives you both sides of the debate. Click here:
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Today's focus: Broadband rulings draw user concerns

By Jim Duffy and Denise Pappalardo

Recent broadband rulings by the U.S. Supreme Court and the FCC
could pinch corporate networks that link remote workers to
corporate VPNs via DSL or cable modem by making connectivity
more expensive, or requiring a change in service provider or
underlying access technology.

"We are quite opposed to this direction," says Jay Shell, vice
president of committees at the Enterprise Networking
Technologies User Association and a member of the technical
staff at Flagstar Bank, in Troy, Mich. "A lot of companies use
these types of services to support mobile workers and virtual
offices. There may not only be fewer choices, but the cost of
these services is likely going up."

Bill Moore, telecommunications manager at the Museum of Modern
Art in New York, says, "It was not a decision I was happy to
see. The first thing that occurred to me when I heard the news
was that our bills will be going up."

Rulings by the FCC and the Supreme Court that DSL and cable
modem services are exempt from telecommunications regulation
could boot some ISPs off these facilities or raise their access
fees significantly. But the rulings might also prompt service
providers to explore last-mile bypass alternatives, such as
wireless and broadband over power line (BPL), to serve their
Internet access customers.

The decisions also might drive more ISP wholesale business
toward alternative, facilities-based DSL providers such as
Covad, which could entice migration through attractive pricing
or packaging incentives.

One large ISP that might feel the pinch is EarthLink, which
provides DSL service to 1.5 million customers over local
exchange carrier loops and cable TV facilities. In a statement
following the FCC's Aug. 5 decision, EarthLink said it is
"confident that we will extend our existing commercial
agreements with the Bells so that we can continue to deliver DSL
services."

The ISP also said it will continue to work with its cable
partners and explore next-generation broadband to give consumers
competitive alternatives to high-speed Internet service.
EarthLink said it will work with the FCC to offer consumers "an
expanding line of competitive advanced communications services
and applications as the FCC phases out the regulatory framework
now governing DSL service."

"We were pursuing wireless and alternative broadband initiatives
even before the [Supreme Court] decision or the recent decision
of the FCC," an EarthLink spokesman said last week when asked to
elaborate on the Aug. 5 statement.

He stopped short of saying that EarthLink will accelerate
investments in wireless or alternatives, including BPL.
EarthLink also offers satellite Internet access.

"We're pursuing those initiatives that make economic sense," the
spokesman said. "They're all great opportunities for us."

One initiative includes a market trial with Covad for bundled
voice and data services. The trial, designed to provide "an
affordable alternative" to the local phone companies for voice
and broadband Internet access, will begin in October in four
markets: Dallas, San Francisco, San Jose and Seattle.

Covad is a nationwide provider of wholesale and retail DSL and
voice services, including VoIP, that could benefit from the FCC
ruling.

"It's pretty obvious that Covad is the only national broadband
provider out there, and we are going to continue to provide
access to [ISPs]," says Susan Jin Davis, Covad vice president
for government and external affairs. "I think it would make us
more attractive."

Noting the upcoming trial with EarthLink, Davis says Covad is
upgrading its DSL access multiplexers to support video. This
would enable Covad to offer ISPs a "triple-play" bundle of
voice, data and video with which to compete against incumbent
local exchange carriers and cable companies.

Despite the specter of higher prices and less choice, one user
believes the rulings might translate into better broadband
service quality.

"The main issue we're looking forward to is being able to get
DSL service with guaranteed class of service," says Davidson
Scott, director of architecture and infrastructure Michael Baker
Corp., at engineering services firm in Moon Township, Pa. "I'm
not saying I'm looking forward to paying more for DSL, but I am
looking forward to getting a service with guaranteed
performance. We have deployed VoIP over a standard DSL service
with mixed success, but in the end you can't [currently]
guarantee performance."

The Museum of Modern Art's Moore, however, cites concerns that
smaller ISPs, especially those in rural areas, might be forced
out of business if they must pay higher access fees to the
incumbents. One analyst concurs but notes that the telecom
economy over the past five years has had a greater effect on
their demise.

"If you're a pure passive-overlay player - a small ISP who
doesn't have any infrastructure - you're probably dead," says
Thomas Nolle, president of consultancy CIMI Corp. "But anybody
who thought these guys weren't dead after the bubble period was
probably delusional."

The top 5: Today's most-read stories

1. Cisco to juice 6500 switch
<http://www.networkworld.com/nloptical5327>

2. Google goes berserk
<http://www.networkworld.com/nloptical5328>

3. Test: CipherTrust tops encryption field
<http://www.networkworld.com/nloptical5329>

4. IT staff shortage looming
<http://www.networkworld.com/nloptical5330>

5. Cisco to double Catalyst 6500 switch capacity in coming
months, report says
<http://www.networkworld.com/nloptical5111>

Today's most-forwarded story:

Cisco to juice 6500 switch
<http://www.networkworld.com/nloptical5331>
_______________________________________________________________
To contact: Jim Duffy and Denise Pappalardo

Jim Duffy is managing editor of Network World's service provider
equipment coverage
<http://www.networkworld.com/topics/service-providers.html>. He
has 18 years of high-tech reporting experience, including over
12 years at Network World. Previously, he was senior editor at
Computer Systems News and associate editor/reporter at
Electronic News and MIS Week. He can be reached at
<mailto:jduffy@nww.com>.

Denise Pappalardo is a Senior Editor at Network World covering
service providers. She can be reached at
<mailto:denise_pappalardo@nww.com>
_______________________________________________________________
This newsletter is sponsored by Nokia
Empower Your Mobile Enterprise

Nokia believes that business mobility will fundamentally change
the way work gets done-and for the better. To allow the entire
organization to get the most from this paradigm shift in
productivity, Nokia Enterprise Solutions focuses on delivering
increased efficiency through enhanced mobility. Learn more by
downloading this white paper today!
http://www.fattail.com/redir/redirect.asp?CID=110473
_______________________________________________________________
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