Friday, October 16, 2020

Study Predicts that Cable "10G" Platform Will Generate Substantial Economic Benefits

Telecom Advisory Services has released a study regarding the potential impact of the emerging cable "10G" platform on the U.S. economy. It concludes that the benefits could be quite substantial: "at least $330 billion in economic output and ... more than 676,000 new jobs over 7 years."

With all of the current attention appropriately paid to 5G mobile broadband, the letter "G" brings to mind the term "generation" (as in "fifth generation"). "10G," however, refers to "10 gigabit." Championed by CableLabs, 10G is an emerging suite of technologies and standards, including DOCSIS® 4.0, that promises to deliver up to 10x faster download speeds, lower latency, improved security, and greater reliability – all over existing network infrastructure. No digging or new fiber required.

In a September Perspectives from FSF Scholars, "'10G' Can Help Future-Proof Broadband Infrastructure," I discussed how – with some facilitating tweaks to the regulatory environment – cable broadband providers could help policymakers accomplish the goal of universal high-speed Internet access:

  • Existing coverage could be extended into areas as yet unserved.
  • Current offerings, which deliver gigabit downstream speeds to the vast majority (93 percent) of U.S. homes passed, are more than sufficient to enable rural Americans (and others lacking broadband access) to engage fully in virtual work, education, healthcare, and entertainment.
  • And, with an upgrade path to 10G on the horizon, subsidized facilities constructed today could remain competitive with rival technology platforms (fiber-to-the-home, Wi-Fi 6 and 6E, and the aforementioned 5G) for years to come.

"Assessing the Economic Potential of 10G Networks," the just-released Telecom Advisory Services study prepared by Dr. Raul Katz and Fernando M. Callorda, forecasts the impact that 10G deployments might have in terms of contributions to the U.S. Gross Domestic Product (GDP), increased consumer surplus, and jobs created. Without vouching for their precise accuracy, I would like to highlight the following claims:

  • Over the next seven years, network investment and related spending will contribute $126.7 billion to GDP – and create 376,000 jobs.
  • New applications and use cases enabled by 10G's faster speeds will add $131.7 billion to GDP – and lead to nearly 300,000 additional jobs.
  • Speed increases will generate $71.5 billion in consumer surplus.

As I do in the paper referenced above, the report points out that "Congress could encourage the deployment of 10G by cable operators [in unserved rural areas] by no longer requiring that broadband providers obtain designation as an Eligible Telecommunications Carrier by the applicable state agency as a prerequisite to participating in federal universal service support programs" and "policymakers could encourage future 10G deployment by eliminating excessive fees and inequitable attachment requirements imposed by utility pole owners on cable operators."