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There’s been quite a lot of controversy around the Broadband Stimulus Plan recently – and many of the concerns, questions and yes, complaints need to be put under the microscope. However one thing that is without doubt in our minds is the inherent value and benefit of the underlying intention of the plan – to expand high speed access so that it is readily available and affordable to everyone, no matter where they live or work. While we wholeheartedly applaud the premise of this initiative, we are also heavily invested in the details and recognize that more research and work must be done for the effort to realize its true promise. Mapping is obviously a big issue that needs more attention, as noted by GigaOM recently….
“[the Fed] has no idea where people without broadband live — which is like planning targeted radiation therapy for a cancer without knowing where the cancer is.”
Last week, four large carriers – Qwest, AT&T, Verizon and Comcast – announced they would not be applying for broadband stimulus funds in the first round of applications that concluded 8/20. The companies cited restrictive regulations, enforced net neutrality and a flaw definition of “underserved areas.” Sean Buckley of Fierce Telecom reached this conclusion in his coverage:
“I can only hope the NTIA spends more time analyzing how their rules affect smaller service providers seeing greater demand for high-speed connections in smaller communities.”
To get the picture where the shovel breaks ground, Broadband Ignite spoke with John Stuart, Operations Manager at Midvale Telephone Exchange, an Idaho-based Local Exchange Carrier serving very rural areas across Arizona, Idaho, Oregon and Washington. John has been at Midvale for 22 years and knows a lot about wiring up remote communities. He sees a lot of room for improvement in the current plan and shared some thoughts with us.
The topic of right-of-way requirements – or the permits that are necessary to break ground, build towers and run wire and cables – came up throughout our conversation.
“Some departments don’t even have the people or specialists to process permits,” John explains. “To process them you need to hire these people – stimulus funding won’t address these hurdles.”
John also highlights the rigid and perhaps arbitrary requirements for grant applications, such as one that gives priority to projects that can commence immediately upon approval.
“Program administrators want shovel-ready type projects,” John says, noting that it doesn’t work this way.
“Many of these efforts are multi-year projects that can’t be completed in a two-year time frame (another provision in the grant guidelines). You can’t just throw Federal dollars at projects and expect the local and municipal challenges go away,” he adds.
We asked John what if anything might improve the plan and ultimately help to bring broadband to rural areas.
He offers a few ideas such as investing in the municipal departments the telephone companies have to work with to provide these services. He also suggests broadening the grant provisions around the time frame for project completion, and in some instances removing a time frame. His final recommendation was for the administration teams overseeing the plan to bring in front line experts to learn more about what is involved in the process of connecting rural regions.
Despite some of the challenges John sees in the current plan, he says Midvale is applying for some of the grants to do middle mile projects where they have permits in place or pending, and that they have already received several Rural Utility Service (RUS) loans.
So as is turns out, billions of dollars sure attracts attention, and the funding is definitely designed to address a vital issue. But where the rubber hits the road Washington needs more input from the operators who have been fighting the good broadband fight for many years now.

Satellite transmitted calls are now a reality. You most likely saw the news that the first ever satellite call between two smart phones via TerraStar-1 took place a couple of weeks ago. This “extra-terrestrial” event was particularly exciting for us as BroadWorks was the IP platform used to route the satellite call over TerreStar’s all-IP core network between 2 integrated satellite-terrestrial smartphones.
Individuals want and need continuous coverage for their voice, data and multimedia communications anywhere. In areas where wireless coverage doesn’t exist or when cell networks go down customers still want to use their phones.
Now with the successful completion of the first satellite call,– TerreStar can move forward and roll out their satellite – terrestrial mobile network service across the United States and Canada to help government, emergency responders, enterprises and rural communities solve communication challenges and enhance productivity and efficiency.
Skeptics who questioned the possibility of an integrated satellite/terrestrial network are now scratching their heads wondering what is next now that the concept has been proven and the technology tested.
Bottom line — IP is the only way this could have been done! The migration continues towards personalized communications – your message delivered your way, when and where you need it. And our BroadWorks platform is the first to support all these types of access – wireline, wireless, cable and now satellite.

Congratulations to Telstra, which recently announced integration of their TIPT (Telstra IP Telephony) Hosted PBX service with Microsoft Office Communications Server (OCS).
Telstra and Microsoft today unveiled Australia’s first hosted IP telephony service integrated with Microsoft Office Communications Server (OCS). This will enable Australian organisations to place high definition Telstra IP Telephony calls directly from applications such as Microsoft Outlook, Microsoft Office Communicator and Microsoft SharePoint.
The new offering of Microsoft OCS on Telstra IP Telephony (TIPT) services means customers can now see at a glance if their contacts are on a phone call, busy or available to be contacted. If available, the user simply clicks on their name to initiate and then manage the telephone call.
Telstra Product Management Executive Director, Mr Philip Jones, said that until now Microsoft OCS integration was limited to customers with premise-based IP telephony services and the new service would improve efficiency by coupling the enhanced features offered by Telstra IP Telephony with certain Microsoft programs.
It’s a great solution. And one of the things that’s overlooked about this, I think, is that from an operations perspective, it’s actually quite simple. Businesses get Unified Communications by blending Telstra’s Hosted PBX solution, which is already live and in market, with Microsoft’s enterprise applications, which are already live and in market.
It’s pretty common to see people talk about UC in either a “forklift” way (‘replace all your stuff with all my stuff, and then you’ll have UC’), or in a “future” way (‘just wait….in Release XYZ you’ll see UC in a whole new way’)….so it’s nice to see Telstra UC-enabling their existing customers (with Microsoft app integration, mobile integration, high-definition voice, and more) today, using the BroadSoft infrastructure already in place.
There’s been a lot of “Hosted v. Premises” debate in the blogosphere in the last few weeks (see here, here, and here), and a particularly spirited debate over at focus.com (“Why wouldn’t a Small to Mid-Size Business Always Go With a Hosted Phone Solution?”), with some fantastic insights from friends-of-BroadSoft Alteva, Broadcore, and SimpleSignal on why their hosted business is booming.
But – sometimes these discussion threads tend to have diminishing returns. You see people digging in their heels on either the ‘pro-hosted’ or ‘pro-premises’ positions.
This kind of black-and-white mindset, I think, misses three interesting trends in our industry.
First, we’re seeing a convergence of hosted and premises solutions in the SIP Trunking space, where service providers complement premises systems with network-hosted applications. Service providers who offer only ‘plain connectivity’ trunking have a serious customer churn risk – with today’s ease of portability, voice-only SIP trunks are quickly becoming a commodity. But service providers that “UC-Enable” their SIP Trunks – CBeyond boasts an average of seven UC apps per customer, and an enviously low churn rate – are able to lock in and monetize their SIP trunking base.
Second, it’s telling that a lot of the historically premises-oriented vendors have been leading the charge into hosted UC. Whether it’s Cisco and Webex Connect, Microsoft’s Hosted Messaging & Collaboration, or Lotus Live – I think the rapid move towards hosted apps from these companies is a clarion call that the hosted UC space is absolutely the real thing.
But at the same time, these teams aren’t abandoning premises solutions either. Microsoft’s “Power of Choice” message has been particularly accurate here, I think. Customers are going to be able to consume apps from enterprise-hosted apps, service-provider hosted apps, or Microsoft-hosted apps – there’s not just one correct answer.
Third, we’re seeing a rise in “virtual overlay services”, where UC apps are provided “in the cloud” independent of the actual end user phones. Google Voice is probably the most famous of these, but certainly service providers around the world have been providing (and monetizing) “Virtual Front Office”-type apps with BroadWorks for years. These apps are demonstrating that there’s a business for hosted UC services that complement, not replace premises systems.
So – “Hosted vs. Premises” doesn’t represent the debate very well, and could actually lead to people missing out on some huge market opportunities.
One of the key trends that’s driving “Unified Communications as a Service” (or ‘Hosted UC’) is that as power and productivity and capability increase, it simply makes more sense to host this functionality “in the cloud.”
Or, to put another way: if all you need is voice, then there’s really not much difference between premises-based solutions or hosted solutions; but once you need a blended service that includes voice, video, mobility, Microsoft or IBM or Google integration, social networking integration, and application integration…well, that’s going to exceed the capabilities of all but the largest of IT organizations.
And these rich UC solutions require rich infrastructure. In the same way that Maslow’s “Hierarchy of Needs” describes a model where fundamental needs must be met before higher value goals can be achieved, Hosted UC has always been dependent on access networks that deliver fundamental levels of bandwidth, security, and control. If you build it, they will come.
As you may have heard, there’s a router war going on right now. Alcatel-Lucent has muscled into the router business, dominated by Cisco and Juniper. Last week they made an announcement about a new 100 gigabit Ethernet edge router, which the company claims will be the first on the market when it is available next year.
Here’s InformationWeek and Telephony coverage of the announcement.
The “edge” is an important distinction. Traditionally the fastest routers have resided in the core of service provider networks, where massive amounts of data are managed. Alcatel Lucent wants to get into the core as well, as explained by Dow Jones:
Over the past five years, Alcatel went from a new entrant to the third-largest player in the $4.5 billion market for edge routers, which manage Internet traffic at the point in the network that’s closest to the user. The business, which falls under its IP division, accounted for 8% of the company’s total revenue in the first quarter.
On Thursday, Alcatel announced a 100 gigabit ethernet edge router, which the company claims is 10 to 100 times faster than anything currently out there. Because of the large capacity, the company hopes the product can breach the more demanding market for core routers, which sit closer to the service provider’s central facility. The market, worth about $2.4 billion, is dominated by Cisco and Juniper but is a potential new source of more profitable revenue.
Call it the race to 100 GbE, call it the router showdown – those stories are easy to write. But they under-report the important trend driving this intense competition – exploding amounts of consumer and enterprise traffic, driven by advanced services and 2.0 applications. This is the underlying issue all these manufacturers, and their carrier customers, are scrambling to prepare for.
At BroadSoft, we don’t have a dog in this router fight. We provide the DNA and applications that are creating a surge in network traffic. Through our partnership with Microsoft, we power unified communications (UC) that unites the desktop with the mobile device for distributed workforces. Moving to an all-IP solution also helps make innovative services like collaboration, video, disaster recovery, and application integration much easier to deploy.
As networks migrate to full IP from traditional TDM, these advanced services will produce the kind of traffic only seen at the core of networks a decade ago. This traffic will require the huge new pipes the big three are introducing, and explains the fight to own a big slice of a multi-billion dollar market.
So here’s to more router competition – as long as it gets the network “on ramps” in place for the data explosion coming down the road.
