Monthly Archives: May 2015

The average cost per megabit of both residential and business broadband continues to decline worldwide with services delivered over cable and fibre networks remaining less expensive per megabit than those delivered using copper/DSL, Point Topic claims.

Point Topic has compiled the latest edition of its global tariff analysis exploring the state of fixed broadband services worldwide, looking at prices and speeds from thousands of services across multiple countries in Q1 2015.

Their analysis confirms that the average cost per megabit of residential and business broadband continues to fall for services delivered over cable and fibre networks.

They also find DSL services provided over copper networks continue to be more expensive per megabit, particularly in the absence of competition from other providers. “As is the case with residential services, the average cost per megabit prices for fibre and cable are more closely matched at comfortably under US$5 while the average price for copper broadband services is much higher at US$18.25 in Q1 2015,” the researchers claim. Across the world on a cost per megabit basis, “Services delivered over copper networks continue to be by far the most expensive and are now more than ten times pricier than those delivered over cable or fibre networks,” they said.

Western Europe enjoys the lowest average price for residential broadband services, Point Topic confirms, while Albania and Iran offer the lowest price entry level residential broadband services.

Western Europe offers the best combination of speed and price when it comes to business broadband services, the analysts point out. Asia Pacific region services are marginally faster, but are also the most expensive. “Business broadband services in the MEA and South and East Asia regions tend to offer the worst combinations of speed and price,” said analysts.

Overall the cost of broadband connectivity seems to be in decline. Point Topic assesses the global average cost per megabit of business broadband services to be $3.77 in Q1 2015, down from $4.10 in the previous quarter. Residential broadband prices declined 1.6 percent to $1.23 per megabit.

PointTopic’s research is generally good reading, but the reality of digital infrastructure deployment remains challenging. The difference between those who have and those who lack broadband access means that even in the US 17 percent (55 million) Americans lack access to fixed broadband, according to the FCC, and this pattern of lack of available service is replicated worldwide. Non-fixed line alternatives such as mobile or satellite broadband provision may help mitigate this digital divide.

PointTopic compares entry level and average tariffs from the pool of 3,086 residential broadband services from operators across 86 countries in Q1 2015.

Each 10 percent increase in broadband penetration generates a GDP increase of 1 per cent, according to the ITU.

West Coast gigabit fiber-optic network and broadband services company Wave says it has raised $130 million to build its fiber network footprint. The company raised the funds via a corporate bond sale led by Deutsche Bank and supported by Wells Fargo, Sun Trust, and RBC Daniels. Wave also announced a new executive team to spend the money.

The company has already decided on the outlines of its expansion. The plans include:

• Expansion into areas surrounding Seattle, Portland, and San Francisco with the addition of more than 1,500 route miles of fiber cable this year
• Completing redundant fiber rings that serve such California markets as Concord, San Jose, Sacramento, and San Francisco with virtual cross-connect services to multiple Bay Area data centers
• Extending its residential gigabit Internet service to more than 10,000 residents this year in Seattle, with expansion to San Francisco and other markets starting this year
• Introducing new business services such as hosted PBX and co-location facilities to its existing IP transport and virtual cross-connect products
• Beefing up the company's construction organization to support network expansion in California, Oregon, and Washington markets.

Wave says it has hundreds of fiber build projects either planned, permitted, or under construction.

Meanwhile, company founder and CEO Steve Weed has named longtime Wave executive Steve Friedman as the new executive vice president of fiber design and construction. Weed also has tapped Harold Zeitz to become president and COO.

"We are thrilled to accelerate our fiber expansion with this additional funding and announce the new roles for Steve Friedman and Harold Zeitz. This furthers our commitment to provide business clients with carrier-class service, and residential customers with the fastest internet speeds at a great price, all backed by exceptional local customer service," said Weed. "Wave is uniquely positioned to deliver these services as a local, profitable, and fast-growing company with more than a decade history, 1,000+ employees and annual revenue in excess of $350 million."

China will invest more than 1.1 trillion yuan ($177.64 billion) between now and 2017 to enhance the nation's fixed broadband and 4G networks, according to the State Council.

The nation plans to invest 430 billion this year to improve network infrastructure. An additional 70 billion yuan will be spent in 2016 and 2017.

The State Council has instructed the nation's three state-owned operators to improve the speed of fixed and mobile broadband services while reducing tariffs.

According to the State Council, by the end of 2015 more than 80% of urban residents are expected to be able to access 100Mbps broadband services. Operators are also expected to deploy a combined 1.3 million 4G base stations for rural areas.

The Council will also continue to process of opening up the nation's fixed broadband market to private competition. This process commenced in November when the Ministry of Industry and Information Technology launched public consultations into the plan.China will invest more than 1.1 trillion yuan ($177.64 billion) between now and 2017 to enhance the nation's fixed broadband and 4G networks, according to the State Council.

The nation plans to invest 430 billion this year to improve network infrastructure. An additional 70 billion yuan will be spent in 2016 and 2017.

The State Council has instructed the nation's three state-owned operators to improve the speed of fixed and mobile broadband services while reducing tariffs.

According to the State Council, by the end of 2015 more than 80% of urban residents are expected to be able to access 100Mbps broadband services. Operators are also expected to deploy a combined 1.3 million 4G base stations for rural areas.

The Council will also continue to process of opening up the nation's fixed broadband market to private competition. This process commenced in November when the Ministry of Industry and Information Technology launched public consultations into the plan.

Currently private competition has been allowed in 16 cities. But by 2017, the market will be open nationwide.

Currently private competition has been allowed in 16 cities. But by 2017, the market will be open nationwide.

Indonesia's PT Telkom has revealed plans to add a 4K TV component to its Indihome fiber-based triple-play service.

PriMetrica quotes Telkom director of consumer services Dian Rachmawan as stating that the 4K TV service will be introduced shortly.

The company is working with set top box suppliers and content providers to develop the service.

Telkom plans to integrate the services with its existing IPTV platform, as well as with new hybrid platforms based on Android.

Telkom is currently testing 4K TV over the live Indihome network ahead of the planned commercial launch. To be effective, 4K TV streaming requires a minimum 50Mbps connection.

At present Telkom offers its Indihome service in 160 cities across Indonesia, and the operator is expanding coverage in these cities. The company aims to have 3 million fiber customers by the end of the year.

CenturyLink, Inc. (NYSE: CTL) says it now offers its PON-based symmetrical 1-Gbps small and medium business (SMB) services in parts of Iowa, Idaho, North Carolina, Ohio, and Wisconsin. The additions bring to 17 the number of states where the operator offers such services.

The new roll out will make the 1-Gbps fiber-optic network services available to 115,000 additional U.S. business locations in the five states. CenturyLink says it also will expand its existing fiber-based SMB footprint in Arizona, Colorado, Florida, Minnesota, Nevada, New Mexico, Oregon, Utah, and Washington.

CenturyLink also provides 1-Gbps SMB services in parts of Missouri, Nebraska, and South Dakota. In all, the new deployments will bring approximately 490,000 SMB locations access to the services, which include IP networking, VoIP, and cloud capabilities.

According to Shirish Lal, CenturyLink's chief marketing officer, the PON infrastructure enables the operator to offer services based on either MPLS or IP. He reports interest in both options, with MPLS perhaps more popular.

The ability to offer symmetrical 1-Gbps also is a key feature the PON enables, Lal says. He says CenturyLink sees increasing bandwidth demands from its SMB customers because of interest in disaster recovery, off-site storage backup, cloud, and related services. The company also is seeing success for its managed LAN offerings that leverage the network as well.

The 1-Gbps pipelines also should enable CenturyLink to offer an array of virtualized services via network functions virtualization in the future, Lal says.

Where CenturyLink also offers 1-Gbps residential fiber to the home (FTTH) services, the operator has converged residential and SMB service provision over the same infrastructure, Lal adds. Those cities include Columbia and Jefferson City, MO; Denver; Las Vegas; Minneapolis-St. Paul; Omaha; Orlando; Portland; Salt Lake City; and Seattle.

Calix says it has provided GPON technology to CenturyLink for at least some of these deployments.