[Conet] Comment on the Draft Universal Service Order

[Horace Mitchell]

The draft requires provision of services supporting:

>>data rates that are sufficient to permit functional Internet access<<

but appears not to define "functional Internet access". Since the data rates
generally in use by Internet users change over time, as do the data rates
required to make effective use of typical Internet applications, it is
essential that an Order should

(a) clearly describe how the regulator is to assess what is reasonable and
appropriate as the data rate required for functional Internet access for the
time being;

(b) include direction as to the frequency with which this data rate should
be reassessed in the light of how general access expectations and practice
is evolving;

(c) provide direction as to the basis on which such assessment should
balance between the conflicting interests of suppliers, consumers, national
strategic need and cost-performance of available technologies;

(d) require that the regulator establish and publicise medium term future
intentions as regards future data rate requirements, such that the supplying
industries (technologies and components as well as service and content
providers) are appropriately motivated to invest in improved capabilities
and rewarded for so doing.

The introduction of a universal service obligation with regard to data rates
relating to Internet access and use presents an opportunity that could well
be missed should the regulator take too conservative a view as to what is
required for 'functional Internet access'. In 2003 many common Internet
applications are effectively unusable if the rated performance of the
consumer's local connection is significantly below that supported by a
standard 56kbps modem. Within two years the Government's own policy aims to
encourage all Internet users to actively consider moving to 'consumer ADSL'
levels of performance. An overly conservative stance on the part of the
regulator would restrict the market's motivation to support this strategy,
as well as reinforcing the existing and growing divide between
price-performance available in city centres, towns and suburbs, and rural
areas.

Horace Mitchell
Secretary
Rural Broadband Interest Group