The Battle for Local Net Neutrality
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This document discusses the importance of network neutrality and open access to digital networks and technologies. It argues that previous industrial revolutions were enabled by new infrastructure like canals, railways, and electricity which allowed for free exchange of ideas and innovation. However, modern digital networks risk being controlled by monopolies if network neutrality is not maintained and access remains open and free of restrictions. The future of conversation and community depends on preventing network owners from exerting control over content and applications.
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The Battle for Local Net Neutrality
- 1. THE BATTLE TO WIN LOCAL NET NEUTRALITY Malcolm J. Matson malcolm.matson@oplan.org
- 2. Since the beginning of time, the human spirit has thrived on CONVERSATION being able to exchange ideas, emotions, information and creative output in freely formed relationships with other people
- 3. Since the beginning of time, the human spirit has thrived on PEER-TO-PEER being able to exchange ideas, emotions, information and creative output in freely formed relationships with other people
- 4. Since the beginning of time, the human spirit has thrived on CONVERSATION being able to exchange ideas, emotions, information and creative output in freely formed relationships with other people
- 5. …across the centuries, independent of technology CONVERSATION
- 6. …across the centuries, independent of technology CONVERSATION
- 7. …across the centuries, independent of technology CONVERSATION
- 8. …across the centuries, independent of technology CONVERSATION
- 9. …across the centuries, independent of technology CONVERSATION
- 10. 10th March 1876 “Mr Matson come here – I At the end of the very day that Alexandra Graham want to see you” Bell spoke the first ever words over the telephone, he wrote to his Father … “ Dear Papa….I feel that I have at last found the solution of a great problem, and the day is coming when telegraph wires will be laid on to houses just like water or gas is, and friends will converse with each other without leaving homes.quot; CONVERSATION
- 11. CONVERSATION USER CREATED CONTENT …lay at the very heart of the telephony industry for its first century of world-changing impact requires open, unmediated and symmetrical connectivity Network Neutrality
- 12. CONVERSATION is most relevant and meaningful to us when it takes place within the context of COMMUNITY
- 13. CONVERSATION - within the context of COMMUNITY my the world my village, ME home & beyond town or city workplace
- 14. CONVERSATION - within the context of COMMUNITY my my world my village, ME home & beyond town or city workplace FAMILY & PHYSICAL VIRTUALSOCI PRIVATE WORK SOCIAL AL NETWORKS NETWORK NETWORK NETWORK
- 15. CONVERSATION - within the context of COMMUNITY ME MY HOME & WORKPLACE MY VILLAGE, TOWN OR CITY MY WORLD BEYOND …our CONVERSATIONdynamically interacts across all four domains of community in which we live our ’real’ lives
- 16. CONVERSATION - within the context of COMMUNITY PRIVATE NETWORK ME - Edge-to-Edge UNMEDIATED UNMETREDPassive - UNDIFFERENTIATED - Symmetrical NON-PROPRIETORY - Open Access IP NET NEUTRALITY
- 17. CONVERSATION - within the context of COMMUNITY HOME NETWORK ME MY HOME & WORKPLACE - Edge-to-Edge UNMEDIATED - Passive UNMETRED UNDIFFERENTIATED - Symmetrical NON-PROPRIETORY - Open Access IP NET NEUTRALITY
- 18. CONVERSATION - within the context of COMMUNITY ME MY HOME & WORKPLACE OFFICE UNMEDIATED - Edge-to-Edge UNMETRED - Passive NETWORK UNDIFFERENTIATED - Symmetrical NON-PROPRIETORY - Open Access IP NET NEUTRALITY
- 19. CONVERSATION - within the context of COMMUNITY ME CONVERSATION MY HOME & UNMEDIATED - Edge-to-Edge WORKPLACE UNMETRED - Passive UNDIFFERENTIATED - Symmetrical NON-PROPRIETORY - Open Access IP MY ‘WORLD THE INTERNET BEYOND’ NETWORK NETWORK NEUTRALITY
- 20. CONVERSATION - within the context of COMMUNITY HOME NETWORK ME MY HOME & WORKPLACE Who and how do we pay for the hub HOME and cabling? NETWORK
- 21. CONVERSATION - within the context of COMMUNITY HOME NETWORK ME MY HOME & WORKPLACE …or the WiFi cards and wireless router?
- 22. CONVERSATION - within the context of COMMUNITY WORKNET WORK ME MY HOME & WORKPLACE …same principle in the office - WHO funds the -network?
- 23. CONVERSATION - within the context of COMMUNITY ME each user buys a “piece of cable and we share the cost of the router the family or company could purchase and MY HOME & own it all outright WORKPLACE they could lease it from a third party who There are several provides the financing available options … whichever option we choose,athere partyno “The last thing we ought to do is let third are buy ongoing restrictions or costs to usage it all, own and control it and then offer us a ‘service’ based on charging us as much as it can for using it - but only in a manner which they dictate”
- 24. CONVERSATION - within the context of COMMUNITY HOME OR OFFICE NETWORK ME Once you have found a means of financing the MY HOME & WORKPLACE ‘bits of hardware’ – the ‘software bits’ go FREE! IN THE DIGITAL WORLD, THIS BUSINESS MODEL OR PRINCIPLE IS SCALEABLE WITHOUT LIMIT NETWORK NEUTRALITY
- 25. CONVERSATION - within the context of COMMUNITY ME MY HOME & WORKPLACE MY VILLAGE, TOWN OR CITY MY WORLD BEYOND ? NETWORK NETWORK NEUTRALITY NETWORK NEUTRALITY CAPTIVE
- 26. of the world‟s population now lives in cities
- 27. and the remainder live in villages and smaller communities
- 28. re are few exceptions My subjectslive in cities but „we‟ live in I My subjects may live in a WALLED live in villages , a CASTLE. GARDEN… but it‟s …or two towns and cities bigger and better but WE live in a than HIS! castle
- 29. Mr Bell’s ‘LocalNet’ Scarce ‘Dumb’ CPE Capacity PTT Intelligence in Central office
- 30. PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE $ Trunk / International CITIES PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE $
- 31. PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE $ Trunk / International $ PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE $
- 32. in order to allocate „scarce‟ network capacity A dedicated „dumb‟ instrument … to access routing „intelligence‟ within the network… to enable… CONVERSATION
- 33. Telephone Operators Business Model ENTIRELY DICTATED BY THE FUNDAMENTALS OF THE TECHNOLOGY GENERATING REVENUE BY: a) charging end users for exclusive use of a pair of copper wires from their home/desk to the local exchange plus selling or renting them CPE(handset) b) the orderly allocation of scarcity - trunk and international network capacity (bandwidth) – charging by time & distance latterly, developing and selling network embedded „value c) added‟ services and „content‟ VERTICALLY INTEGRATED SERVICE PROVIDER BUSINESS MODEL INFRASTRUCTURE + OPERATION + SERVICES
- 34. Total annual cost to the world = $ multi trillion a) charging end users for exclusive use of a pair of copper wires from their home/desk to the local exchange plus selling or renting them CPE(handset) b) the orderly allocation of scarcity - trunk and international network capacity (bandwidth) – charging by time & distance latterly, developing and selling network embedded „value c) added‟ services and „content‟ VERTICALLY INTEGRATED SERVICE PROVIDER BUSINESS MODEL INFRASTRUCTURE + OPERATION + SERVICES
- 35. THREE GREAT DISRUPTIVE TECHNOLOGIES OF THE SECOND HALF OF THE 20TH CENTURY silicon chip silicate glass spread spectrum fibre DIGITAL SOFTWARE COMPUTER OPTICAL FIBRE CONTROLLED RADIO
- 36. “Big brother is watching you !”
- 37. POLITICAL DRIVE FOR PRIVATISATION, COMPETITION & REGULATION MARKET DEPLOYMENT & TAKE-OFF FOR THE DIGITAL TECHNOLOGIES
- 38. POLITICAL DRIVE FOR PRIVATISATION, COMPETITION & REGULATION BRIGHTON 1889 FOLKSTONE PORTSMOUTH GLOUCESTER HULL NATIONAL 1880s M&A TELEPHONE TUNBRIDGE GLASGOW WELLS COMPANY SWANSEA DERBY BRISTOL Nationalisation Local telephone companies and networks were „forced‟ 1912 into a national monopoly status by state nationalisation 19 84 Privatisation
- 39. POLITICAL DRIVE FOR PRIVATISATION, COMPETITION & REGULATION The same process of distorting „state intervention‟ took place in almost every country around the globe 19 84 PTT Privatisation
- 40. Great Britain Local connectivity and access throughout every nation provided by a single, formerly nationalised monopoly carrier operating a vertically integrated ‘service provider’ business model
- 41. France Local connectivity and access throughout every nation provided by a single, formerly nationalised monopoly carrier operating a vertically integrated ‘service provider’ business model
- 42. Italy Local connectivity and access throughout every nation provided by a single, formerly nationalised monopoly carrier operating a vertically integrated ‘service provider’ business model
- 43. Germany Local connectivity and access throughout every nation provided by a single, formerly nationalised monopoly carrier operating a vertically integrated ‘service provider’ business model
- 44. Brazil Local connectivity and access throughout every nation provided by a single, formerly nationalised monopoly carrier operating a vertically integrated ‘service provider’ business model
- 45. POLITICAL DRIVE FOR PRIVATISATION, COMPETITION & REGULATION BRIGHTON FOLKSTONE PORTSMOUTH GLOUCESTER HULL TUNBRIDGE GLASGOW WELLS SWANSEA BRIGHTON BRISTOL THE DISRUPTIVE DIGITAL TECHNOLOGIES SHOULD HAVE BEEN LET LOOSE AT THE LOCALNET LEVEL AND NOT ‘GIVEN’ EXCLUSIVELY TO THE TELECOMS SECTOR TO DEPLOY
- 46. POLITICAL DRIVE FOR PRIVATISATION, COMPETITION & REGULATION …collision between disruptive technologies and state anointed privatised monopolies WHAM! appoint consultants WE, How should these to the regulator need to consult all the addresstechnologies new this to avoid be deployed to ‘market failure’ ‘stakeholders’ benefit everyone? silicon chip 198 1984 silicate glass fibre Telecoms ‘stakeholders’ “ … the route to the future is with us – you can rely on us to deploy the new technologies” spread spectrum VESTED INTERESTS HANDED POWER BY THE STATE TO TAME DISRUPTIVE TECHNOLOGY AGAINST „OUR‟ INTERESTS
- 47. Imagine… England 1759 …if the French can build the Canal du Midi – why don’t I build a canal to carry coal from my coal mines to Manchester to where all my mill customers are? Francis Egerton 3rd Duke of Bridgewater
- 48. 1785 ….. 1825 4,500 miles of canal … but imagine if this vital sector had been regulated as today
- 49. 1829 … not to be confused with OFCOM Office of Canal Operations & Management
- 50. PLAN VIEW TOWPATH CANAL TOWPATH
- 51. ‘APPARENT’ BENEFITS FOR EVERYONE • faster movement of coal and other materials • greater utilization of canal capacity • minimised public risk through licensed regulatory regime • birth of a new engine manufacturing industry • massive growth of steel and rail output • last but not least … “happy horses”
- 52. What actually happened? THE CANAL INDUSTRY Declined and was dormant within 20 years DISRUPTIVE TECHNOLOGY + FREE MARKET OF END USERS = SECTOR SPECIFIC REGULATION = GOLDEN AGE OF SOCIAL AND ECONOMIC PROSPERITY
- 53. GOLDEN AGE OF SOCIAL AND ECONOMIC PROSPERITY A historical perspective on the five previous „industrial revolutions‟ created by disruptive technological innovation Carlota Pérez
- 54. FIVE TECHNOLOGICAL REVOLUTIONS IN 200 YEARS Carlota Pérez THE AGE OF INFORMATION TECHNOLOGY 1971 THE AGE OF OIL, THE AUTOMOBILE, PETROCHEMICALS AND MASS PRODUCTION 1908 THE AGE OF STEEL ELECTRICITY AND HEAVY ENGINEERING 1875 THE AGE OF RAILWAYS, COAL AND THE STEAM ENGINE 1829 THE “INDUSTRIAL REVOLUTION” IN ENGLAND 1771
- 55. EACH INDUSTRIAL REVOLUTION IS UNDERPINNED BY NEW INFRASTRUCTURECarlota Pérez GLOBAL DIGITAL TELECOMMUNICATIONS THE AGE OF AND 1971 INFORMATION TECHNOLOGY ICT SUPPORT NETWORKS THE AGE OF OIL, THE AUTOMOBILE, ELECTRICITY, TELEPHONE, PETROCHEMICALS 1908 HIGHWAYS AND AIRWAYS AND MASS PRODUCTION THE AGE OF STEEL ELECTRICITY TRANSCONTINENTAL COMMUNICATIONS, 1875 AND HEAVY ENGINEERING STEAMSHIPS, RAILWAYS AND TELEGRAPH THE AGE OF RAILWAYS, RAILWAYS, PENNY POST 1829 COAL AND THE STEAM ENGINE AND TELEGRAPH THE “INDUSTRIAL REVOLUTION” CANALS, TURNPIKE ROADS 1771 IN ENGLAND AND MAIL COACHES
- 56. EACH INDUSTRIAL REVOLUTION IS UNDERPINNED BY NEW INFRASTRUCTURECarlota Pérez “In no previous „industrial GLOBAL DIGITAL TELECOMMUNICATIONS AND 1971 revolution‟, has the ICT SUPPORT NETWORKS infrastructural network of the ELECTRICITY, TELEPHONE, 1908 HIGHWAYS AND AIRWAYS „revolution‟ that succeeds it, ever been delivered by, or TRANSCONTINENTAL COMMUNICATIONS, 1875 STEAMSHIPS, RAILWAYS AND TELEGRAPH evolved from, those responsible for the RAILWAYS, PENNY POST 1829 AND TELEGRAPH infrastructural network of the prevailing age” Matson CANALS, TURNPIKE ROADS 1771 AND MAIL COACHES …SO WHAT WAS THE PHILOSOPHICAL, POLITICAL OR ECONOMIC RATIONALE FOR REGULATING TO DO JUST 1984 WITH THE CURRENT ICT REVOLUTION ? THIS IN
- 57. … and the result ? APPARENT BENEFITS FOR EVERYONE • „always on‟ connectivity to the internet • faster „download‟ speeds • increased ISP competition • lower end user costs • increased usage and household penetration ADSL Unbundled ADSL is NOT a ‘Golden Age’ creating deployment of disruptive digital technologies
- 58. POLITICAL DRIVE FOR PRIVATISATION, COMPETITION & REGULATION PUBLIC POLICY FORMULATION THROUGH silicon chip CONSULTATION OF SELF-APPOINTED STAKEHOLDERS INHIBITS PROGRESS AND WORKS AGAINST silicate glass fibre INNOVATION AND THE INTERESTS OF THE END USER, CITIZENS AND SOCIETY spread spectrum
- 59. POLITICAL DRIVE FOR PRIVATISATION, COMPETITION & REGULATION MARKET DEPLOYMENT & TAKE-OFF FOR THE DIGITAL TECHNOLOGIES
- 60. MARKET DEPLOYMENT TAKE-OFF FOR THE DIGITAL TECHNOLOGIES WHAT? WHERE? silicon chip silicate glass fibre WHO? HOW? spread spectrum
- 61. END USER PTO LOCAL EXCHANGE “dumb” CPE PTO LOCAL EXCHANGE + dedicated network capacity Trunk / International NETWORK embedded “intelligence” + scarce capacity PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE
- 62. PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE Trunk / International Optical Fibre Optical Fibre PTO LOCAL PTO LOCAL EXCHANGE EXCHANGE
- 63. PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE Digital Digital Computer Computer Trunk / International Digital Optical Fibre Computer Optical Fibre PTO LOCAL PTO LOCAL EXCHANGE EXCHANGE Digital Digital Computer Computer
- 64. Ken Olsen, CEO Digital Equipment Corporation “There is no reason for any individual to have a computer in their home.”
- 65. Digital Digital Digital Digital Computer Computer Computer Computer PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE Digital Digital Computer Computer Digital Digital Digital Digital Computer Computer Computer Computer Trunk / International Digital Optical Fibre Computer Optical Fibre Digital Digital Digital Digital Computer Computer Computer Computer PTO LOCAL PTO LOCAL EXCHANGE EXCHANGE Digital Digital Computer Computer Digital Digital Digital Computer Computer Computer
- 66. Digital Digital Digital Digital Computer Computer Computer Computer END USER PTO LOCAL EXCHANGE PTO LOCAL EXCHANGE Digital Digital Intelligent CPE Computer Computer + restricted Network Digital Digital Digital Digital capacity Computer Computer Computer Computer Trunk / International Digital Optical Fibre Computer Optical Fibre NETWORK „dumb‟ routers + Digital Digital Digital Digital abundant Computer Computer Computer Computer network capacity PTO LOCAL PTO LOCAL EXCHANGE EXCHANGE Digital Digital Computer Computer Digital Digital Digital Computer Computer Computer
- 68. 2009 LOCALNET SP SP ∞ SP 2 3 SP Scarce Intelligent Dumb CPE Capacity ‘n’ Capacity 1 CPE PTT Intelligence ‘Dumb’ in Xchange Routers NETWORK CAPTIVE NO LOCAL P2P CONNECTIVITY ASSYMETRICAL TOPOGRAPHY The world has been turned upside down PRIMARY VALUE CAPTURED BY TELCO ‘ACTIVE’, CLOSED, METERED PIPES
- 69. Open Public Local Access Network OPLAN Carrier Beyond the 1 OPLAN – including the PTT Internet Wireless Node Wireless Wireless Node Wireless ISP Node Wireless Node 2 Node ISP Beyond the Wireless Wireless Wireless 1 OPLAN – Wireless Beyond the including the Node Node Node Node OPLAN – Internet including the Internet Wireless Wireless Wireless Node Node Node Beyond the Carrier OPLAN – 2 including the Internet
- 70. THE MOTHER OF ALL DIGITAL BATTLES v „our‟ telco/cable computers devices Digital Digital Computer Computer THE ‘DO’or ‘DIE ISSUES: Digital 1. Who will „control‟ local Computer connectivity? TELCO/CABLECO or CITIZENS Digital Digital 2. Will OURdevices remain free to Computer Computer communicate directly with each other and not just via the LOCAL TELCOs? NOW running in a city COMMUNITY near you! INTERNET or NETWORK CAPTIVE ? NETWORK NEUTRALITY ?
- 71. THE MOTHER OF ALL DIGITAL BATTLES v „our‟ telco/cable computers devices Digital Digital Computer Computer THE ‘DO’or ‘DIE ISSUES: Will we be able to have Digital 1. Who will „control‟ local Computer CONVERSATION connectivity? TELCO/CABLECO or with anyone other than a toll- CITIZENS Digital Digital extracting, content controlling 2. Will OURdevices remain free to Computer Computer communicate or cableco? telco directly with each other and not just via the LOCAL TELCOs? NOW running in a city COMMUNITY near you! INTERNET or NETWORK CAPTIVE ? NETWORK NEUTRALITY ?
- 72. Give a man a fish and you feed him for a day… teach him how to fish and you feed him for a lifetime
- 73. Give a man a fish and you feed him for a day… teach him how to fish and you ruin a great business opportunity
- 74. CONVERSATION - within the context of COMMUNITY ME HOW? MY HOME & WORKPLACE MY VILLAGE, TOWN OR CITY THE INTERNET … WORLD BEYOND to move from this … NETWORK NETWORK NEUTRALITY NETWORK NEUTRALITY BIAS
- 75. CONVERSATION - within the context of COMMUNITY ME HOW? MY HOME & WORKPLACE MY VILLAGE, TOWN OR CITY THE INTERNET … WORLD BEYOND … to this NETWORK NEUTRALITY
- 76. THE BLIND PERPETUATION BY INCUMBENT TELCOS AND CABLECOS OF THE VERTICALLY INTEGRATED SERVICE PROVIDER BUSINESS MODEL IS WRECKLESSLY DESTROYING SHAREHOLDER VALUE APPLICATION / CONTENT SERVICE PROVISION + NETWORK OPERATIONS + NETWORK INFRASTRUCTURE Telcos /ISPs Cable
- 77. THE BLIND PERPETUATION BY INCUMBENT TELCOS AND CABLECOS OF THE VERTICALLY INTEGRATED SERVICE PROVIDER BUSINESS MODEL IS WRECKLESSLY DESTROYING SHAREHOLDER VALUE £ £ RISK / RETURNS INVESTMENT APPLICATION / CONTENT SERVICE PROVISION + NETWORK OPERATIONS + NETWORK INFRASTRUCTURE
- 78. THE BLIND PERPETUATION BY INCUMBENT TELCOS AND CABLECOS OF THE VERTICALLY INTEGRATED SERVICE PROVIDER BUSINESS MODEL IS WRECKLESSLY DESTROYING SHAREHOLDER VALUE Technology Free Market Entry Barriers Global Life Cycle Competition & Costs Reach APPLICATION / CONTENT months infinite none high SERVICE PROVISION + NETWORK years few moderate moderate (2-3) OPERATIONS + NETWORK decades one per high none (25yr) location INFRASTRUCTURE
- 79. THREE NECESSARY AND SUFFICIENT COMPONENTS LOCAL POLITICAL VISION AND COMMITMENT DEVELOPMENT PARTNER WITH A THE LOCAL TELCO SOUND STRATEGIC INCUMBENT AS A OPEN ACCESS PLAN & TRACK PARTNER RECORD OPLAN
- 80. THREE NECESSARY AND SUFFICIENT COMPONENTS LOCAL POLITICAL VISION AND COMMITMENT DEVELOPMENT PARTNER WITH A THE LOCAL TELCO SOUND STRATEGIC INCUMBENT AS A OPEN ACCESS PLAN & TRACK PARTNER RECORD OPLAN
- 81. A new generation of enlightened and visionary local political leaders are beginning to ask … “What if mycity and local economycould have an OPLAN which would not only save massive cost BUT deliver better local P2P connectivity, so our community can do things differently and better so as to outperform other cities?” CONVERSATION
- 82. A new generation of enlightened and visionary local political leaders are beginning to ask … APPLICATION / CONTENT CONVERSATION SERVICE PROVISION + NETWORK OPERATIONS + Open NETWORK INFRASTRUCTURE Access Telcos /ISPs Cable
- 83. A new generation of enlightened and visionary local political leaders are beginning to ask … APPLICATION / CONTENT CONVERSATION SERVICE PROVISION + NETWORK OPERATIONS “The last thing we ought+ do is let a third party buy to Open it all, own and control it and then offer us a ‘service’ NETWORK INFRASTRUCTURE based on charging us as much as it can for using Access Telcos– but only in a manner which they dictate” it /ISPs Cable
- 84. CONVERSATION - within the context of COMMUNITY Amsterdam Deputy-Mayor Mark van der Horst “…. we make a big step towards the deployment of a citywide fiber-to-the-home network. This enables our city to compete with other European cities. The fiber network delivers to Amsterdam an innovative and freely accessible openinfrastructure, suitable to support growth in demand for the next 30 years or more. In this way we ensure a wide open marketplace for innovative service-providers and economic growth, as well as a fast track for the smarter and cheaper delivery of care, education and other public services.” City of Amsterdam Press Release, November 3 2005
- 85. CONVERSATION - within the context of COMMUNITY Eindhoven Mayor Alexander Sakkers “In 2004 the Dutch government gave to the Eindhoven Region/Southeast Brabant, the title of BRAINPORT because the economic identity of our region is defined by high- tech research and development and production activities. We believe that the development of an open public local access network to serve the community is vital to it remaining globally competitive in the 21st century knowledge economy”
- 86. CONVERSATION - within the context of COMMUNITY Panayiotis Tzanikos Former Mayor Municipality of Amaroussion Athens , Greece “We feel that we are entering a period when towns and regions will compete with each other and one of the key parameters in the competitiveness of the city is telecommunications. … I think that the level of what we are getting [from the conventional telecommunications sector] is not enough to equip the city for the next generation which is coming….. we feel that the way they [the telecoms operators] operate they keep the citizens, the businesses, the social groups, outside of the new era which is arriving so they do not have the motive to use the network to make new things, new creations and services.” OpenPlanet interview October 2005 “
- 87. CONVERSATION - within the context of COMMUNITY Councillor John Robinson Hull City Council United Kingdom “It is essential that the city of Hull has an open public local access network if it is to solve its social and economic problems resulting from older industries like fishing being replaced by the knowledge economy. We need to compete with other cities in attracting inward investment and ensuring that those who live and work in and around Hull enjoy the highest level of public services – which must be underpinned by an open access 4th utility.” OpenPlanet interview October 2008 “
- 88. THREE NECESSARY AND SUFFICIENT COMPONENTS LOCAL POLITICAL VISION AND COMMITMENT DEVELOPMENT PARTNER WITH A THE LOCAL TELCO SOUND STRATEGIC INCUMBENT AS A OPEN ACCESS PLAN & TRACK PARTNER RECORD OPLAN
- 89. TWO ALTERNATIVE ROUTES TO AN OPLAN BUILD „OVERLAY‟ FIBRE OPLAN NETWORK 1. The current favoured option BUT • fierce opposition from telecom incumbent which is proving powerful • results in local economy „financing‟ two networks : lowers global competitiveness • low penetration (50% or <) means lower utility value : esp. to public sector • most expensive solution due to civil engineering costs (25% of total CAPEX)
- 90. TWO ALTERNATIVE ROUTES TO AN OPLAN „CONVERT & UPGRADE‟ EXISTING LOCAL INCUMBENT NETWORK 2. • would deliver near ubiquitous local penetration and assure local P2P connectivity • avoids wasteful duplication and over-capacity • massive (25%) CAPEX saving and minimise local civil engineering disruption BUT • these national carriers have no appetite to abandon the vertically integrated business model (INFRASTRUCTURE + OPERATION + SERVICES) which seeks to „capture‟ maximum end-user service/application/content expenditure • due to earlier nationalisation, the privatised local incumbent is almost always a national carrier
- 91. ONLY FIVE CITIES IN THE WORLD WITH A DEDICATED TELECOMS INCUMBENT
- 92. CONVERSATION - within the context of COMMUNITY In one of these cities, Malcolm Matson has been active over a number of years in generating local political and community stakeholder understanding and support for creating a not-for- profit SPV which will acquire the local incumbent in order to restructure it around the OPLAN business model. This will involve divesting all service provision activities in order to focus on owning and managing this local 4th utility infrastructure so as to ensure that the long term value and benefit rests with those using it and not some absent owner hoping to rent seek within the arbitrary limits set by a sector-specific „regulator. This exemplar project will not only bring untold socio-economic benefit to the city concerned, which will trigger the pressure for emulation in other cities, but it will also demonstrate to shareholders in existing local exchange carriers, that value is to be realised by embracing rather than resisting the relentless march towards vertical desegregation and open access.
- 93. OPLAN… Open Public Local AccessNetwork is a network of truly „broadband‟ capacity - i.e. where the bandwidth capacity is dictated by nothing other than physical characteristics of the deployed technologies (neutral) dedicated to serving a local geographic community - ranging from a street or business park to an entire town or city provides abundant low cost access to connectivity on an „end-to-end‟ and symmetrical basis throughout that community is a „public utility‟ in that it is available for use (on equal terms) by any party located within the community it serves: public and private, business and residential affords global connectivity (inc. to the internet) through offering „open access‟ to competing third- party carriers/service providers does not differentiate between „content creators‟ and „content consumers‟ and their „bits‟ provides infrastructure which is open to all and is owned and controlled independently of any service or content which uses it is structured, financially and legally, and configured with management and governance measures which serve the ‟common good‟ and assures the primary short and long term „value and benefit‟ rests locally with users end-user „access‟ charges are broadly based on servicing capital and maintenance cost-recovery is primarily funded by and managed by the private sector and market driven - not a backdoor to re- nationalisation (OPLAN white paper at www.oplan.org )
- 94. You are invited to collaborate and contribute to the first local incumbent exchange carrier in the world to opt for
- 95. CONVERSATION WALTER LIPPMANN 1889-1974 Influential US writer, journalist, and political commentator “ The role of a press is to keep a community in conversation with itself ”
- 96. CONVERSATION MALCOLM MATSON 2009 Disruptive technologist and entrepreneur “ In the digital age, the role of an OPLAN is to keep a community in conversation with itself ”
- 97. THE BATTLE TO WIN LOCAL NET NEUTRALITY Malcolm J. Matson malcolm.matson@oplan.org