Broadband Communities

MAR-APR 2013

BROADBAND COMMUNITIES is the leading source of information on digital and broadband technologies for buildings and communities. Our editorial aims to accelerate the deployment of Fiber-To-The-Home and Fiber-To-The-Premises.

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Editor's notE Just Say Yes CEO & EDITORIAL DIRECTOR Scott DeGarmo / PRESIDEnT Jeffrey M. Reiman / PUBLISHER nancy McCain / CORPOR ATE EDITOR, BBP LLC Steven S. Ross / EDITOR Masha Zager / ADVERTISInG SALES Irene G. Prescott / MARkE TInG SPECIALIST Meredith Terrall / OnLInE nEwS EDITOR Marianne Cotter / DESIGn & PRODUCTIOn karry Thomas COnTRIBUTORS Joe Bousquin David Daugherty, korcett Holdings Inc. Joan Engebretson Richard Holtz, InfiniSys w. James Macnaughton, Esq. Henry Pye, RealPage Bryan Rader, Bandwidth Consulting LLC Robert L. Vogelsang, Broadband Communities Magazine BROADBAND PROPERTIES LLC CEO Scott DeGarmo PRESIDEnT Jeffrey M. Reiman VICE PRESIDEnT, BUSInESS & OPERATIOnS nancy McCain CHAIRMAn OF THE BOARD Robert L. Vogelsang VICE CHAIRMEn The Hon. Hilda Gay Legg kyle Hollifield BUSInESS & EDITORIAL OFFICE BROADBAnD PROPERTIES LLC 1909 Avenue G • Rosenberg, Tx 77471 281.342.9655 • Fax 281.342.1158 Broadband Communities (ISSN 0745-8711) (USPS 679-050) (Publication Mail Agreement #1271091) is published 7 times a year at a rate of $24 per year by Broadband Properties LLC, 1909 Avenue G, Rosenberg, TX 77471. Periodical postage paid at Rosenberg, TX, and additional mailing offices. POSTMASTER: Please send address changes to Broadband Communities, PO Box 303, Congers, NY 10920-9852. CANADA POST: Publications Mail Agreement #40612608. Canada Returns to be sent to Bleuchip International, PO Box 25542, London, ON N6C 6B2. Copyright © 2013 Broadband Properties LLC. All rights reserved. 2 Meeting consumer needs – rather than protecting existing lines of business – is the best long-term strategy. K odak, after inventing the digital camera, lost its frstmover advantage by trying to protect its flm photography business. Kodak wanted the market to go in one direction, and consumers wanted it to go in another direction. By the time the company caught on, it was too late. History is full of such examples. Te myth that advertising creates demand is largely a myth. Consumers have minds of their own and rarely appreciate being told what they want. Companies that ignore consumer demand to protect existing lines of business may succeed in the short term, but the strategy fails in the long term. Tis issue of BroadBand Communities ofers many examples of shifts in consumer preferences and their implications for service providers. Young people no longer want to be told when to watch TV? Bryan Rader writes about a new breed of private cable operators that ofer bulk broadband and over-the-top video without linear pay TV. Apartment dwellers no longer want landlines? Richard Sherwin writes about how to make cellphones work indoors – even in "green" multifamily buildings. Service providers that disregard consumer preferences leave themselves open to competition, sometimes from unexpected sources. As Joan Engebretson writes, cell towers need fber connectivity, and this opportunity encourages the creation of new fberbased transport carriers. Some communities are told they are too poor to appreciate robust, high-speed broadband. In Scotland, a housing cooperative built fber to the unit in a new low-income housing development and achieved a 78 percent | BROADBAND COMMUNITIES | take rate. Other communities are supposed to be too remote; throughout the United States, members of rural electric cooperatives are learning there is nothing to stop them from building their own broadband networks. Municipalities are told they should be satisfed with whatever broadband services are available; as Joanne Hovis writes, they need robust broadband to deliver traditional services in today's world – and many of them can save money by operating their own networks. DO ThE MATh Of course, it isn't just a matter of saying yes – deployers that forge ahead unprepared, whether they are established providers or new competitors, may be in for unpleasant surprises. Before making decisions, crunch the numbers, both cost and revenue. Joanne Hovis ofers guidelines to help government agencies do this, and she discusses several revenue sources they may not have been aware of. Steve Ross, BroadBand Communities' corporate editor, introduces the FTTH Analyzer models he created, which are freely available online ( Te models help potential deployers decide quickly and easily whether a fber network is worth pursuing further – and whether a lender might be interested in funding it. First, take the time to understand what consumers want and will pay for. Second, do the math. And fnally – if the numbers work – just say yes. | March/april 2013

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