“5G” Wireless Is the New Fiber Optic, Bait-and-Switch Scandal

“Ajit Pai tweets praise for House passage of 5G support bill

“The Ray Baum Act reauthorizes the FCC and encourages deployment of next-generation wireless services in the US.”

“A key obstacle [to 5G] is our country’s outdated infrastructure regulations, which were written for previous generations of wireless technology,”… He has proposed a plan to streamline the federal historic and environmental review procedures that apply to wireless infrastructure deployments in hopes of reducing regulatory financial burdens on wireless providers deploying 5G.”

“Deploying 5G Will Cost at Least $130 Billion in Fiber, Study Says

“Deploying 5G wireless speeds 10 to 100 times faster than 4G will cost $130 to $150 billion in fiber optic cabling alone over the next 5 to 7 years.”

“To illustrate how crucial fiber is, Deloitte reports 90 percent of all internet traffic travels over wireline fiber, even if it ultimately terminates on a wireless device.”

“Withholding that investment could be even more costly, according to the study. Falling short of fiber deployment will not only impede the deployment of 5G, it’ll mean a dwindling number of broadband provider choices for Americans the ‘widening of the digital divide’.”

“The divide is already significant. According to Deloitte’s figures, fiber passes less than one third of homes in the U.S., and only 39 percent of consumers have access to more than one broadband provider of 25 Mbps service — the minimum speed definition of broadband according to the Federal Communications Commission.”

“From a pure cost perspective, again I think it’s a little too early to tell, but what I will tell you is about half of our cost to deploy FiOS is in the home today and the next biggest thing outside the home is the drop. And so our take is that with the router roughly costing the same — and, remember, we wouldn’t have to have an ONT as we think about it today.

“So when we deploy 4G and densify the small cell cantennas (to provide) 5G (service) for very little incremental cost. With the router in the house being probably less than an ONT and router combination today and losing the wiring in the house and losing the drop, we expect there to be a significant cost reduction.”

“The fact of the matter is Wireline capital — and I won’t get the number but it’s pretty substantial — is being spent on the Wireline side of the house to support the Wireless growth. So the IP backbone, the data transmission, fiber to the cell, that is all on the Wireline books but it’s all being built for the Wireless Company.”

“Well, I think that’s where 5G and over-the-top come in because even in the markets where we have our FiOS footprint from Washington to Boston, the preferred method, the preferred architecture for us is going to be that last mile being 5G.”

“A regulated company will always renege on promises to provide public benefits tomorrow in exchange for regulatory and financial benefits today.”

“It’s not here yet, but it’s arriving sooner than you think. Suddenly the brave new world of videophone and smart TVs that futurists have been predicting for decades is not years away but a few months…. We won’t have to wait long. By this time next year, vast new video services will be available at a price to millions of Americans.”

“Deploying 5G, the next-generation of wireless service, could mean 3 million new jobs, $275 billion in private sector network investment, and $500 billion added to the GDP.”

“While the great broadband debate rages on at Capitol Hill, a new study released yesterday said widespread use of high-speed Internet service in the near future could pump as much as $500 billion annually into the U.S. economy.

“The study, conducted by the Brookings Institute in Washington, D.C. and titled ‘The $500 Billion Opportunity: The Potential Economic Benefit of Widespread Diffusion of Broadband Internet Access….”

In short, 5 comes after 4. Thus 5G.

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bruce kushnick

bruce kushnick

New Networks Institute,Executive Director, & Founding Member, IRREGULATORS; Telecom analyst for 38 years, and I have been playing the piano for 63 years.