Government Policies Driving

Deployments of All-Fiber

Networks in the US

Presentation of the FTTH Council Americas

March 27, 2014

Baseline: US FTTH Deployments in 2002

Less than 1% of US

Households Were Passed by

FTTH in 2002

Baseline: US FTTH Deployments in 2002

What policies did the US and

state/local governments

adopt to drive FTTH growth?

A Dozen Years of Pro-FTTH Policies

• Refuse to require sharing of FTTH

facilities

• Remove barriers to FTTH network

deployment

• Provide support for FTTH deployments in

rural areas and to schools and libraries

• In general, promote high-speed

broadband network deployments

No Unbundling of FTTH Facilities

• 1996-2003 – FCC adopts a pro-unbundling

approach to sharing incumbent telco network

facilities

• 2003 – To drive investment in networks, FCC

reverses its approach in the Triennial Review

Order: no unbundling of FTTH

• Despite many requests to amend its policy, the

FCC has refused to change course

No Unbundling of FTTH Facilities

• What did the FCC find in 2003?

– Prices for access to unbundled facilities were

so low they were inhibiting investments in

networks • For CLECs, why build when it’s so cheap to rent?

• For cable operators, why build when the CLECs can rent so

cheaply?

• For ILECs, why build when they had to share their

investments at unfavorable prices and their competitors

weren’t building?

No Unbundling of FTTH Facilities

• What happened since the 2003 decision?

– Verizon immediately announced its FiOS

build to 18 million residences

– CLECs exited the residential market

– Cable companies began to invest billions to

upgrade to DOCSIS

– And now, other incumbent telcos are

undertaking major FTTH builds

Removing Barriers to Network Deployment

• 2006 FCC decision to facilitate cable

(video) entry by competing cable

franchise applicants; many states adopted

similar policies

• 2009 FCC decision to prohibit exclusive

entry agreements between cable (video)

providers and owners of multi-dwelling

units

Removing Barriers to Network Deployment

• 2011 FCC decision to facilitate improved

access to poles/ducts/conduits

• 2011 decision by Kansas City

governments to offer Google reasonable

and expeditious access to rights-of-way

and government facilities

Providing Government Support

• Rural Utilities Service loan and grant programs to

support network investment in rural areas

• 2009 Congressional action to provide $7+ billion for

Broadband Stimulus

• 2013 proposal by FCC to spend billions to bring fiber to

schools and libraries

• 2014 FCC decision to launch a new program for Next

Generation Network experiments in rural areas

• 2014 Congressional action to initiate Gigabit Test-Beds

in rural areas

Promoting High-Speed Network Deployments

• 2010 National Broadband Plan does not

propose unbundling of FTTH or open access

• 2013 announcement by FCC Chairman of

Gigabit Community Challenge Program

• 2013 FCC adopts an FTTH cost model to

determine support in high-cost, rural areas

• 2014 FCC Chairman encourages municipal

network deployments

US Fiber Deployments in 2014

And, so, what does a dozen

years of government action

add up to for FTTH

deployments?

US Fiber Deployments in 2014

More than 28 million

Households Passed by FTTH

+

A Virtuous Cycle:

“Gimme Fiber”