part 2: universal internet access
DESCRIPTION
Part 2: Universal Internet Access. Robert Cannon Senior Counsel for Internet Issues Office of Plans and Policy US Federal Communications Commission. Standard Disclaimer. Views expressed are Robert Cannon’s and do not necessarily represent those of the FCC, the Commissioners, or its staff. - PowerPoint PPT PresentationTRANSCRIPT
Part 2:Part 2:
Universal Internet AccessUniversal Internet Access
Robert Cannon
Senior Counsel for Internet Issues
Office of Plans and Policy
US Federal Communications Commission
Standard DisclaimerStandard Disclaimer
Views expressed are Robert Cannon’s and do not necessarily
represent those of the FCC, the Commissioners, or its staff.
““A Nascent Industry”A Nascent Industry”
1991
1997
Sou
rce:
M
atrix
.net
Loga
rithm
ic
Distribution of ISPsSeptember 1996
1996
Distribution of ISPsOctober 1998
1998
Number of Internet Hosts Source: Matrix.Net
100-200%
50-100%
25-50%
Decrease
Sou
rce:
M
atrix
.net
Online PopulationsOnline Populations
0100200300400500600700800900
1000
1997 1998 1999 2000 2001 2002 2003 2004
U.S. W. Europe Non-Japan Asia Japan Latin America
Source: Morgan Stanley Dean Witter, The Global Internet Primer (June 2000)
Mill
ion
North AmericanNorth AmericanBackbone ProvidersBackbone Providers
05
101520253035404550
Source: Boardwatch Magazine
Num
ber
of P
rovi
ders
Backbone MarketBackbone MarketInternational Internet Connections to Countries with One or
Two ISPs
26%
20%
17%
6%
4%
4%
3%3%
3%3%
3%3%3%1%
1%
France Telecom
Cable and Wireless
Teleglobe
Hong Kong Telecom
Telecom Italia
Concert
Telecom Portugal
Interpacket
Telstra
Singapore Telecom
Tele2
Worlcom
Global Crossing
Telkom (South Africa)
Thaicom
Source: OECD
Factors for Internet DeploymentFactors for Internet Deployment
• Telecommunications Pricing• Universal Telecommunications Service• Customer Premises Equipment Market
(Modems)• Computer Inquires: Telecom Safeguards
– Open Platform / Bottlenecks– Anticompetitive Behavior
Telecommunications PricingTelecommunications Pricing
40 Hours US$ PPP (off-peak), September 200040 Hours US$ PPP (off-peak), September 2000
www.oecd.org/dsti/sti/itwww.oecd.org/dsti/sti/it//
0
10
20
30
40
50
60
70
80
90
PSTN fixed charge PSTN usage charge (discounted) ISP charge
Internet subscribers and pricingInternet subscribers and pricing
United States
United Kingdom Sw itzerland
Sw eden
Portugal
Norw ay
New Zealand
Netherlands
Mexico
Korea
JapanItaly
Ireland
Iceland
HungaryGreece
Germany
France
Finland
Denmark
Czech Republic
Canada
Austria
Belgium
Australia
Spain
OECD average
0
5
10
15
20
25
0 10 20 30 40 50 60 70 80 90 100
Internet Subscribers per 100 inhabitants (January 1, 2000)
Average Price for 20 hrs Internet access 1995-2000, in US$ PPP
Internet Development and Pricing Internet Development and Pricing
OECD average
Spain
Australia
Belgium
Austria
Canada
Czech Republic
Denmark
Finland
France
Germany
Greece Hungary
Iceland
IrelandItaly Japan
Korea
Luxembourg
Mexico
Netherlands
New Zealand
Norw ay
PolandPortugal
Sw eden
Sw itzerland
Turkey
United Kingdom
United States
0
50
100
150
200
250
0 10 20 30 40 50 60 70 80 90 100
Internet Hosts (October 2000)
Average Price for 20 hrs Internet access 1995-2000, in US$ PPP
At the beginning of 2000 five countries had unmetered At the beginning of 2000 five countries had unmetered access. At the close of 2000 there will be 12.access. At the close of 2000 there will be 12.
• ‘Traditional’:– Australia, Canada,
NZ, Mexico, US.
• Introduced in 2000:– 24/7: Germany,
Portugal, UK.– Off-peak: Finland,
Hungary, Korea, Spain.
• Close Call:– Japan (NTT for ISDN
and late night)
• Unmetered but not from incumbent:– France, Netherlands,
Ireland, Italy, Poland, Switzerland, Sweden.
Source: OECD
US Telecom Universal ServiceUS Telecom Universal ServiceHistorical Telephone Penetration EstimatesHistorical Telephone Penetration Estimates
0102030405060708090
100
1920 1930 1940 1950 1960 1970 1980 1990
Source: FCC
GreatDepression
Deregulation of CPEDeregulation of CPE
• Carterphone 1959: connects radio to telephone
• FCC overturns AT&T tariff that prohibits interconnection
• Standardize as Part 68• Result in vibrant
modem market
Computer InquiresComputer InquiresRecapRecap
• Separation of Basic and Enhanced– Unregulation of Enhanced Services– Affirmative regulation of carriers
• to meet the needs of data processing• to promote innovation and competition in the data
processing market• to assure equal access for computer service to
essential communications services • to prevent anticompetitive behavior
• Open communications platform
Resulting MarketResulting MarketLow Barriers to EntryLow Barriers to Entry
Telecom
7000+ ISPs
Many 1000s of Content and Application Providers
Mistakes We Have Made...Mistakes We Have Made...
I think there is room in the world for maybe five computers.
- Thomas Watson Sr.,Chairman of IBM Corp
1943
This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherentlyof no value to us.
- Western Union, 1876.
Sou
rce:
M
atrix
.net
Internet
BitnetARPANet
Community NetworksCommunity NetworksBandwidth v. ContentBandwidth v. Content
• Training
• Community Empowerment
• Promote Local– Communication
– Economy
– Health
• E-Democracy
• Not a global shopping mall
• Creators not Consumers
www.afcn.netTelecommunity Resource Center
www.tcrc.net Gene Crick
AC
LU v
. Ren
oA
CLU
v. R
eno
(Com
mun
ica t
ions
Dec
enc y
Act
)(C
omm
unic
atio
ns D
ecen
cy A
ct)
It is no exaggeration to conclude that the Internet has achieved, and continues to achieve, the most participatory marketplace of mass speech that this country -- and indeed the world -- has yet seen. The plaintiffs in these actions correctly describe the "democratizing” effects of Internet communication: individual citizens of limited means can speak to a worldwide audience on issues of concern to them. Federalists and Anti-Federalists may debate the structure of their government nightly, but these debates occur in newsgroups or chat rooms rather than in pamphlets. Modern-day Luthers still post their theses, but to electronic bulletin boards rather than the door of the Wittenberg Schlosskirche. More mundane (but from a constitutional perspective, equally important) dialogue occurs between aspiring artists, or French cooks, or dog lovers, or fly fishermen. . . . [T] the Internet may fairly be regarded as a never-ending worldwide conversation. The Government may not, through the CDA, interrupt that conversation. As the most participatory form of mass speech yet developed, the Internet deserves the highest protection from governmental intrusion. -- ACLU v. Reno, CA No. 96-963 (E.D.Pa June 11, 1996), affirmed, No. 96–511(S.Ct. June 26, 1997)
Strategy of Universal AccessStrategy of Universal AccessThrough Local Access PointsThrough Local Access Points
E-rateE-rate
Schools and Libraries Schools and Libraries ProgramProgram
Discount MatrixDiscount MatrixINCOME
Measured by % ofstudents eligible for theNational School Lunch
Program
URBAN LOCATION
Discount
RURAL LOCATION
Discount
If the % of students in yourschool that qualifies for the
National School LunchProgram is…
…and you are in an URBANarea, your
discount will be…
…and you are in aRURAL area, yourdiscount will be…
Less than 1% 20% 25%1% to 19% 40% 50%
20% to 34% 50% 60%35% to 49% 60% 70%50% to 74% 80% 80%
75% to 100% 90% 90%
Schools and Libraries Schools and Libraries ProgramProgramProcessProcess
Contra
ct
Forms
Money
School
Service ProviderUniversal Service
Administrator
Schools and Libraries ProgramSchools and Libraries ProgramWhat is CoveredWhat is Covered
• Covered– Wiring– Routers– Hubs– Network File Servers– Necessary Software– Installation– Maintenance– LANs
• Not Covered– Computers
– Hardware
– Non-network software (applications)
– Fax Machines
– Modems
– Teacher Training
– Upgrades to Electrical System
– Asbestos Removal
– SecurityEligible Services Listhttp://www.sl.universalservice.org/Reference/eligible.asp
Schools with Internet AccessSchools with Internet Access
010
2030
40
5060
70
8090
100
1994 1996 1998 1999
Classrooms
All Public Schools
Per
cent
E-Rate School and Library Internet Access Subsidies:84% funding has gone to public schools
$4B has been distributed
www.sl.universalservice.org
TimelineTimeline
1970 1980 1990 2000
TCP/IPInvented
DNS
IAB
W3C
TCP/IP
Comp III
Concluding Thoughts...Concluding Thoughts...
• Internet Growth is Robust• Telecommunications Policy is a key
factor to Internet Deployment– Focus on bottlenecks
• Government Partnership– Research & Development– Universal Service
• Net is more than a global shopping mall
Potential Policy SolutionsPotential Policy SolutionsTexasTexas
Ab
ility
to P
ay
Population Density
Low
Low
High
High
Technology,Demand
AggregationCompetition
Loan and Tax Incentive Programs,
Community Networking, Social
Contracts
Grant Development, Economic and
Community Development
Initiatives
Source: Brett Perlman, Texas Public Utility Commission
Thank You . . .Thank You . . .
Robert CannonSenior Counsel for Internet Issues
FCC Office of Plans and [email protected]
Schools and Libraries Schools and Libraries ProgramProgram
ResourcesResources• FCC School & Libraries Program website
www.fcc.gov/ccb/universal_service/schoolsandlibs.html
• Universal Service Administrator’s SL Website http://www.sl.universalservice.org/
• Merit.Net http://www.merit.edu/k12.michigan/usf/
• The New Universal Service: NTIA's Guide for Users http://www.ntia.doc.gov/opadhome/uniserve/univweb.htm