Topics (note: "Canada" in most cases can be interchanged with any other country in the world; that is, topics are worldwide) 1) Why are cell phone plans so expensive in Canada? The cost of service has little to do with the radio services themselves, it’s all about infrastructure. In Canada the big 3 telecommunications companies maintain a monopoly on this infrastructure and this monopoly is regulated via the Canadian Radio-television and Telecommunications Commission (CRTC). But even with regulation, it is not encouraging the right behaviour with respect to infrastructure so that savings can trickle down to consumers. Trevor will explain how an “Open Access Network” (OAN) business model benefits Canadians and how an infrastructure marketplace could scale it. 2) Broadband is the "railroad" of our era and is critical to democracy. The United Nations says it best: “… [A]ffordable broadband connectivity to the Internet is a foundation stone of modern society…Broadband does not just comprise infrastructure; today, widespread broadband connectivity offers the prospects of new services and an information revolution to change – and challenge – our very approach to development.” Trevor will walk through the socioeconomics of broadband and the future technologies that will drive broadband growth.

1. Broadband Internet
The “Railroad” of Our Era
Trevor Textor
Rural IT & Telecom Consultant
Principal, Textor Corp.
-- Fostering “it just works” rural data communications systems
that enable clients to focus on their core business --
www.textor.ca
ca.linkedin.com/in/trevortextor

3. Agenda
• The new themes of the internet: Sharing & Contribution
• What is Broadband?
• Broadband’s Impacts (Economic, Social)
• Broadband Growth & Drivers
• Role of Wireless (mobile) in Broadband
• Understanding wireless
• The components of Broadband Costs
• Sharing & an Open Access Network business model
• Canada’s status for sharing (cell plan comparison)
• Roles of the regulators (CRTC, IC)
• Ideas for promoting Broadband growth

4. Broadband is the “glue” for:
• Convergence
– Internet Protocol; consolidation of
multiple cables to a single cable
• Increasing Resource Utilization
– Move of compute to data centres
(Cloud services)
– Virtual Machines
– Big Data Analytics
– Sharing Economy (AirBnb, Car2Go, etc.)
The Sharing Revolution

5. ~Pre-2010 “Couch Potato” Internet worked fine
– Example Asymmetric Service:
20 Mbps 1 Mbps
New Reality “I have a voice”
– Less Asymmetric OK
20Mbps 5 Mbps
– Ideally Symmetric
20Mpbs 20 Mbps
Contribution

6. • Basic level of service target in bandwidth
(Mbps)
• Definitions of “Basic service” from:
– Akamai: 4 Mbps @ <35ms uncongested last
mile
– FCC (US):
25 Mbps 3 Mbps
– Industry Canada:
5 Mbps 1 Mbps
Broadband Internet

7. Broadband Impact (Benefits)
Economic Innovation
Productivity
Social Access to services
Healthcare
Environmental Efficient energy consumption

8. Broadband’s Economic Impact
• Doubling broadband speeds for an economy
can add 0.3 % to GDP growth
Canada = +$5.5 Billion/year
Federal Funding for
Broadband Development = $350M

9. Broadband’s Social Impact
(Democracy)
• Social Media catalyzes pro-democracy
movements - Twitter Revolutions
• Requires Mobile Broadband Internet
• United Nations Broadband Commission cites
broadband
“stimulate[s]
democracy”

10. Broadband is Critical Infrastructure
• “… broadband service … must carry the same
obligations as so many of the other vital
services do.” President Obama
• “… a foundation stone of modern society….”
(United Nations)
• “a basic human right” (popular opinion)
• All developed countries now have a
broadband plan and committed government
dollars.

11. Broadband – This era’s “railroad”

12. Video Killed the Internet (Star?)
• Broadband internet usage is doubling every
1.5 years.
• “Cable TV Replacement”
– 52% of internet traffic (37% Netflix)
• Per Session Stream Requirements:
– HD (1080p) 2 Mbps
– UltraHD (4K) 12 Mbps

13. Telepresence (The Future)
• Immersive Video – like you’re there
– Telemedicine (“house calls”)
– Business Meetings
• Per Session Stream Requirements:
– HD (1080p) 20 Mbps
– UltraHD (4K) 120 Mbps
• Why the world needs to endlessly build more
broadband (fiber, towers)

14. Telepresence (The Future)
• Per Session Stream Requirements:
– HD (1080p) 20 Mbps
– UltraHD (4K) 120 Mbps
• Why the world needs to endlessly build more
broadband (fiber, towers)

15. • Bandwidth demand outstripped supply
Not naming any names… (cough) Netflix
• Valid technical
reasons for priority
• Bob Kahn, co-inventor
of IP calls Net
Neutrality a “slogan”
• Best solution is to have abundant bandwidth
Net Neutrality

16. Wireless
• Majority (60%) of Internet Access is mobile
(wireless)
• Cooper’s Law is the world’s longest running
growth S-curve (120 years):
The ability to transmit different
radio communications at one time
and in the same place has
doubled every 30 months since
1895

17. What is Wireless?
• Wave of energy
• Transmission of a minimum level of energy
dictates packet error rate and ultimately
bandwidth
• Choice of frequency
dictates:
– Range
– Bandwidth
Need more wireless infrastructure!

18. Services
Voice Video
Web Browsing Email
Active Components 15-30%
Economic Life: 5 - 7 years
(radios, routers, switches)
Passive Components 70-85%
Economic Life: 15 – 25 years
(Spectrum, Civil engineering works;
towers, trenches, laying duct/cable)
Cost of Broadband

19. Critical Passive Components for:
• Wireless = Towers / Spectrum
– Bandwidth bounded by
Tower Weight Support
Capacity
• Wired = Fiber / Conduit
(trenching)
Cost of Broadband

20. Spectrum Licensing
Beginning to Not Make Sense

21. Open Access Network Model (OAN)
Leveling the playing field

22. • Model for sharing costs
• Company that owns passive component not
allowed to own active component
• Maximizes sharing/utilization of components
• Encourages competition at the service level!
Open Access Network Model (OAN)

23. Savings Estimates By Level of Sharing
Sharing Level Savings Estimates (total as
sharing as increased)
Site Sharing (tower/room) 10%
Infrastructure Sharing
(electricity, A/C, etc)
16-20%
Telco Equipment Sharing 25%
National Roaming 30%
Full Sharing (Includes
sharing a core
transmission network)
40%
IncreasedSharing

24. Canada’s Sharing Status
Canada India
Cell Plan (~4GB data) $75 CAD $20 CAD
Less than 5% wireless infrastructure sharing.
Less than 10% wired infrastructure sharing.
Comparison to India (66% wireless sharing) :

25. • Telecom Act only applies to Big
Telecom
• Complicated Regulatory regime:
CRTC and Industry Canada
• Focus on wired passive
infrastructure sharing, not mobile
passive infrastructure sharing
(towers / roaming)
Canada’s Towers By
Ownership
Telcom
Other
Industries

26. Ideas For Change
Promoting Broadband Growth:
• Focus on infrastructure sharing
• Raise visibility via statistics
• Create a marketplace
(rentfaster.ca / eBay)
• Improve regulator effectiveness
Promoting Contribution
• Educate consumers
• Demand higher upload rates

27. Questions / Thank You
Trevor Textor
Rural IT & Telecom Consultant
Principal, Textor Corp.