Tuesday, January 15, 2008

FTTH: Amsterdam v. Singapore

Just a few short postings.

First, I added a few noteworthy documents in the right hand column. Go down to 'Favorite Articles'.

Second, another WSJ story on the Amazon Web Services. Outages will be tackled and QoS added, so large corporates can buy the services also. What makes it so interesting to me, is the strategy of trying to maximize utilisation rates of Amazon's hardware. In telcoland, it is called embracing wholesale services.

Third, a thought on subsidizing broadband: Amsterdam v. Singapore. Assumptions: FTTH is the end game and nobody needs two fiber networks. Here is the reasoning:
  1. Politics will put broadband on the agenda for its GDP, environmental and social benefits. As long as (public) companies are not ready to commit, governments will get involved.
  2. States could participate (honoring MEIP), which is the basis of many munifiber projects such as Amsterdam.
  3. Governments could choose to subsidise a regulated (natural) monopoly, implying separation and sharing. This is what is happening in Singapore.

Key questions:

  1. Will Amsterdam put copper and coax based networks out of business? Many are skeptical. Check out these stories on the UTOPIA initiative in Utah, refuted here.
  2. Will the NetCo monopoly in Singapore be incentivised to invest?

No comments: