Wednesday, July 20, 2011

DSL "Obsolete?" Nuances are Important

Nuances are important. AT&T CEO Randall Stephenson told an audience at a meeting of the National Association of Regulatory Utility Commissioners that copper-based DSL broadband technology is “obsolete.” That's an unexpected quip, but likely has to be put into context.

Stephenson apparently was answering a question from an audience member about how state regulators should think about new technology cycles when they are considering things like the universal service fund, and Stephenson undoubtedly was emphasizing faster technology cycles these days, where five years is about the useful life of a new access technology.

Consider wireless networks, where 3G networks are being replaced by 4G networks. The point is that access providers often cannot make investments that are amortized over 10 to 15 years. Digital Subscriber Line is not the same thing as the latest version of U-verse, nor is cable modem access of a decade ago the same thing as DOCSIS 3.0.

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