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Definition of broadband

Definition of broadband used in the model: A single "broadband" service is defined as one offered at data rates of 45 Mbps (megabits per second) or greater. The broadband service platform provides enough bandwidth for data transfer, faxing, voice communications, and two-way video services. The broadband deployment is based on the residential deployment for broadband developed in the New Technology Deployment Model, which is described in the Overview of the New Technology Deployment Model and the 1995 User Guide.

Description of four buttons on the base of the chartmaker

VIEW CURRENT CHART

This button on the base of the chartmaker displays a chart based on the current selections.

Go to schools chartmaker

This button brings you to the page with the "Broadband to Schools Chartmaker".

Go to broadband paper

The paper Overview of New Technology Deployment Model: Broadband with Associated Depreciation and Overheads, provides more detail on the various selections, on the assumptions underlying the model, and various caveats.

Go to home page

This button brings you back to the home page.

Description of the selections on the chartmaker

Where is it deployed?

Urban:

Geographic areas equivalent to the U.S. Office of Management and Budget's metropolitan statistical areas (MSAs).

Rural:

Geographic areas equivalent to the remaining market areas, or non-MSAs.

National:

Combines both urban and rural areas and displays as a single curve.

Urban-Rural:

Displays both the urban and the rural curves.

How soon do you want it?

5, 10, or 20 Years:

By the end of the selected time frame, 100% of the technology is deployed.

What are the markets?

Definition of broadband used in the model: A "broadband" service is defined as one offered at data rates of 45 Mbps (megabits per second) or greater.

Do not show market detail:

When this button is clicked, only nation-wide data are displayed on the charts. Market detail provides data on Residential and Business markets on the charts.

Market detail

Residential:

This technology platform provides work at home (data transfer, video conferencing, faxing, etc., all simultaneously) in addition to traditional voice. It also provides entertainment and other one-way video services. This platform should support an average of one switched wideband signal (up to 1.544 Mbps) per current residential access line (making work-at-home applications possible) and one broadcast video signal (providing video on demand) per person per household. In addition, this platform provides current residential narrowband service.

Business:

This technology platform provides enough bandwidth to support a burgeoning need for higher than 64 kilobit business services (quality video-conferencing, two-way interactive data services, primary and basic rate ISDN). It also has a dynamic allocation of bandwidth that lets the customer reconfigure the network in real-time to meet tailored business needs. This platform should support two switched wideband signals per current business access line, as well as all current business services. Additionally, a business with a mix of wideband and broadband services should be able to reconfigure its own access to the public switched network up to the information capacity of services purchased.

Both:

Combines both residential and business markets.

Additional network features for both residential and business platforms include electronic interfaces at customer and network interconnection points; network power sources and power back-up customized to customer density; and integration of narrowband, wideband, and broadband services on the same fiber. The subscriber is met electrically, not optically in this model.

Do you want just the fiber infrastructure or the ability to get broadband services?

These curves are revenue requirements per customer per month. The difference between the infrastructure (equipped) curves and the ability to get broadband services (capable) curves is the additional cost of equipping capable lines to provide broadband services. The model assumes a 2.35% annual growth rate in nationwide access lines. Revenue requirements equal expenses plus tax plus return on investment. Local exchange carrier revenue requirements include basic service, state toll, and access.

Just the fiber infrastructure:

This is the cost for the modern telephone network carrying only traditional telephone services. On the chart these curves are labeled "Broadband Infrastructure," and are based on the following assumptions about telephone lines (access lines): 100% broadband capable and 0% broadband equipped. Broadband capable means that: (1) all copper feeder and distribution facilities (loop) have been replaced with fiber; (2) an asynchronous transfer mode (ATM) switching adjunct has been added to the central office (wire center); and (3) current services are deployed on this fiber infrastructure. Therefore, all customers subscribing to narrowband services, such as voice service, will continue to receive these services. Most of the capable costs are for the conversion of the copper lines.

Ability to get broadband services:

This is the cost of the telephone network carrying broadband services. On the chart these curves are labeled "Broadband Services," and are based on the following assumptions about access lines: 100% broadband capable and 100% broadband equipped by the end of deployment time (5, 10, or 20 years). "Broadband equipped" is the cost for the telephone network carrying broadband services. For example, for a 20 year deployment, each year the total number of lines equipped to provide broadband services increases by 5% of the total capable lines. A line must be broadband capable in order to be equipped; equipped lines are a percent of only those lines that are already broadband capable.

For a customer to receive broadband services, costs beyond those associated with converting an access line to broadband capability are required. Additional costs for equipping include the costs of channelization of broadband services near or at the customer premises, broadband switching capabilities at the wire center (switch), and transport through the interoffice network for broadband services. These facilities are new and not a replacement of existing facilities.

Do you want to compare broadband with the telephone line?

No:

Only fiber deployment revenue requirement curves are on the chart.

Yes:

Inserts the 1992 telephone revenues per line to provide a benchmark for comparison with the fiber deployment curves. This benchmark is a calculated revenue requirement for large local telephone companies divided by the number of telephone lines (access lines). The revenues include basic service, state toll, and access. The benchmark represents a marker rather than an exact threshold since it excludes the impact of competition or the effect of additional revenues from other potential sources (whether current services such as cable TV or new services which have yet to be developed).

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