OneWeb: Investor Write Down

Japanese technology giant Softbank has written down the value of its stake in British satellite maker OneWeb by £380m, the Telegraph can reveal.

OneWeb, which is backed by Softbank, Airbus and Sir Richard Branson’s Virgin Group, has burned through billions in investor cash for its plans to launch a web of hundreds of low-orbit satellites.

Softbank took an impairment loss on its stake in OneWeb earlier this year, while some early investors have lost as much as half of the value of their stakes, a source said.

Founded in 2012, OneWeb is one of Britain’s technology “unicorns”, a start-up valued at more than $1bn.

It hopes to launch hundreds of satellites to improve mobile and internet connections…

 

This not good news for OneWeb who seem to be having problems getting spacecraft launched.

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Federal Reserve Bank Report on Broadband Digital Divide

The Federal Reserve Bank of Kansas City released its report Disconnected: Seven Lessons on Fixing the Digital Divide on July 31st at a State Broadband Leaders Network Meeting.

CONCLUSION: THREE OPPORTUNITIES FOR ACTION

The digital divide is wide and complex. No one group can bridge the divide alone—not government, banks, businesses or community organizations. Each of these groups, however, must play a role if the divide is to be narrowed.

This report identified three specific opportunities for action, which align with the three legs of the digital 1inclusion stool:

1. Research and evaluate the impact of policy on broadband expansion.

Good policy requires good data. Throughout this project, we found research related to the economic affect broadband has on communities. The studies documented the correlation between broadband and economic opportunity, but questions remain as to what policies best encourage broadband expansion. Policies vary greatly from one state to the next, especially as it relates to which types of entities—large carriers, small independent for-profit providers, municipalities and cooperatives—are allowed to build and operate networks. Elected officials would find it easier to make informed decisions if they had access to research on the effectiveness of these policies on boosting broadband deployment and improving affordability. Broader research on improving affordability and adoption would also help inform the field.

2. Support and expand workforce development programs focused on digital skills training.

Digital skills are a must for the in-demand jobs of today and tomorrow. Innovative approaches to preparing workers can provide a pathway to living-wage jobs that don’t require a four-year degree, or, in many cases, even a two-year degree. Simply training workers on basic office-related programs like email and word processing can boost their employability. Registered apprenticeship programs can further expedite the process of developing and onboarding qualified workers. Workforce development programs targeting LMI individuals may also attract interest from banks seeking CRA-related activities, as outlined in Engaging Workforce Development: A Framework for Meeting CRA Obligations by the Federal Reserve Banks of Dallas and Kansas City.

3. Support computer donation programs targeting those in need.

Businesses, government agencies, universities and other anchor institutions frequently replace computers in two-year to four-year cycles. Surplus computers have little monetary value, typically just pennies on the dollar. When donated, though, they can make a significant difference—whether the computer goes to a low-income mom pursuing her education, or a student learning to code. A donated computer can be a low-cost, high-impact way to change one’s economic trajectory. Such initiatives, particularly when targeting LMI populations and combined with workforce training programs, could also attract interest from banks seeking CRA-related activities.

The full report, with a long section on rural broadband, including a sidebar on mapping issues, can be downloaded HERE.

Erratic Posting and Comment Moderation

Dear Readers

I will be in Chemo Therapy for the next four months, with a session every two weeks, starting on June 18, 2019.  Posting will depend on how I respond to the chemo drugs.  Please be patient if you have posted comment needing moderation.  Thank You!

New posts will appear below.

Russ

Update (06-24-19)  Thank you for your kind thoughts and encouragement, as every positive thought helps.  I found a large number of comments to moderate, thanks for your patience. 

Comstocks: Slow Progress for Fast Speeds

 

Two years after partnering with Verizon, few Sacramento neighborhoods have 5G availability

Russell Nichols has the details in the June issue of Comstock’s magazine.

In December, Earl Lum spent the holiday season snooping around Sacramento’s eight city council districts, snapping pictures of city-owned street lights for evidence. The wireless analyst was on a mission to assess the status of Verizon’s 5G Home network, which launched in the capital in October 2018.

He came bearing questions: How many poles had the shoe-boxed sized 5G radios mounted on them? Were these fixed wireless sites only in wealthier neighborhoods? Did they target businesses? It took him three trips to map every pole. Each time, he scouted for two to three days from dawn to dusk. For an official launch of a network like this, Lum believes at least 2,000 sites with about 50 percent service coverage would be respectable. But what he found was some 200 small cells attached to street lights with broadband signals reaching less than 10 percent of Sacramento’s population.

“The network was extremely limited,” says Lum, founder of EJL Wireless Research in Half Moon Bay, who has analyzed wireless and mobile radio access markets for over 20 years. “There was clearly not enough sites to even do what I would call a real launch for a network.”

There are 40,000 city-owned poles in Sacramento with about 9,000 being suitable for wireless development, according to city officials. But Lum argues that those suitable poles only cover the main streets, and the distance of the signals from each site fails to fill the gaps. Another issue he points out is the millimeter wave technology, which is line of sight, meaning trees and rain can disrupt signals.

Two years after the city’s partnership with Verizon was announced, Lum’s findings – published in the report United States 5G Fixed Wireless Access Case Study, Verizon Wireless and the City of Sacramento, CA – paint a sobering picture. The city boasted of being one of the first four test cities for the telecom giant’s 5G network. Officials called the move a major step toward a future of lightning-fast speeds, smart meters and wearable technology, and, down the line, industrial automation and self-driving cars. They called it a “game-changer.” But if the game has any hope of changing, Lum says the city would need as many as 4,000 sites to provide full coverage, an undertaking that could take up to 10 years.

“Everyone did a lot of field trials prior to the launch,” Lum says. “[Verizon wasn’t] going into this whole thing blind. Part of this survey was to do a fact check on the reality.”

Continue reading HERE.

Russell Nicholes captures the struggle that Sacramento is going through to implement 5G.  Think about the struggle that your community would go through to implement mmWave 5G with the need to maintain the line of sight connections and the antenna spacing needed to provide full coverage. Does your community have unique street lighting infrastructure that would inhibit the use of standard mini-cell tower installations, such as these in historic downtown Nevada City?

Screen Shot 2019-06-08 at 6.32.17 AM
Nevada City Street Lights on Main Street

Here is a Chicago Mini-Cell Tower

Chicago_Verizon 5G minitower
Verizon Minoi-Town in Chicago 

“Deployment of 5G services using microwave and millimeter wave frequency bands is critical to the success of 5G in the United States. However, the limitations we have uncovered using these frequency bands should cause the industry to take a serious look at the return on investment for these types of 5G networks.” 

— Earl Lum Microwave Journal.

RCRC Rural Broadband Update

The Federal Communications Commission (FCC) is under mounting pressure to re-evaluate the accuracy of the broadband mapping data used in the commission’s 2019 Broadband Deployment Report.  On June 2, 2019, Senate Minority Leader Chuck Schumer (D-New York) became one of the loudest critics yet when he pointed to the disparities between the FCC’s report and a 3rd party study conducted by Microsoft.

In addition, Congressman Doug Collins (R-Georgia), Ranking Member of the House Judiciary Committee, wrote a letter to FCC Chairman Ajit Pai requesting the commission consider a more accurate and reliable approach to mapping broadband coverage.  Unreliable broadband coverage data from the FCC paints an overly optimistic picture of broadband coverage in rural areas and undermines the ability of policymakers to prioritize funding for areas that are truly underserved.  More members are calling for improvements to broadband mapping data to better address the digital divide and improve broadband coverage in rural areas.

Source: RCRC Barbed Wire Newsletter

Competition, Competition, Competition

by Russ Steele

One thing that activates the telco and cable providers is competition. How are they going to deal with the competition from SpaceX, OneWeb, Amazon, and other LEO high-speed internet providers? These innovators are circling the legacy communications provider like a hunger coyote looking for a rabbit lunch.

In the past, the telcos use their political muscle to keep the competition under control at every opportunity. They spend millions on lawyers and lobbyist to shape legislation to stifle competition rather than spend their profits on providing superiors service.

For example, in the early days of WiFi, a Texas University was wiring up the campus. Next door to the University was some low-income housing, and the University wanted to share their WiFi with the low-income neighbors. According to the story I heard, AT&T sent 25 lawyers down to the State Legislature to stop this sharing of free WiFi. AT&T abhors competition!

We are going to see a significant upheaval in the internet market when the LEO satellites networks are established and fully functional. Today the phone and cable companies are providing marginal broadband services at a high cost to the consumer. Why, because they can, they are the only provider, with no competition.

There are millions of DSL customers poised to jump once a competitive broadband service is offered. Some communities have pinned their hope on 5G for more reliable service at higher speeds, but that technology rollout is controlled by the telco providers who are not going to provide competing service. On the other hand, they will have little control over the satellite internet service providers, unless they cut backhaul deals that incorporate some competition restrictions.

I can hear the conversation now, “If you sign this 5G backhaul contract, you cannot sell your broadband to our 4G/5G customers.”

The cable companies are losing customers to the cord cutters and streamers. While cutting the video cord, streams still need a broadband connection. In many cases, the cable internet service is the only connection, and it comes at a high price. Why, because the cable companies have no competitive incentive to reduce rates.

In many communities with only telco DSL or an aging cable plant available providing broadband access, LEO broadband will be the first time there will be some competitive service. The question is, how will the telco and cable companies deal with that competition?

They can lower the price for their marginal services, but the customer still has unreliable slow speed internet access, whereas the LEO satellites are offering much higher speeds, and hopefully more reliable service. All the LEO satellite service challenge are still unknowns.

In the end, the superior service will win if the cost is reasonable. Amazon is a significant disruptor in the retail sector, and space-based internet is going to be a substantial disruptor in the telecommunications sector.

How will the telcos respond?  Your thoughts?