19

Broadband & Home Networks

John J. Lombardi, Ph.D.*

*Professor of Mass Communication. Frostburg State University. Frostburg Maryland

Introduction

Tim Berners-Lee, the man credited with developing the World Wide Web, has said “Anyone who has lost track of time when using a computer knows the propensity to dream, the urge to make dreams come true, and the tendency to miss lunch” (FAQ, n.d.). The World Wide Web is just a bit more than two decades old. However, it is deeply engrained in the daily lives of millions of people worldwide. But the World Wide Web is just part of the growing Internet experience. The Internet is used in virtually all aspects of our lives. In addition to surfing the Web, the Internet allows users to share information with one another.

The Internet can be used to send and receive photos, music, videos, phone calls, or any other type of data. At the beginning of the current decade there was more than one zettabyte of digital information in the world… a number that is expected to double every two years (ITU, 2012a). With benefits to healthcare, energy consumption, and an improved global economy the importance of high speed Internet access around the globe will continue to grow.

The term “broadband” is generally used to describe high speed Internet. What constitutes “high speed,” however, varies a bit from country-to-country. In the U.S., the FCC defines broadband as connectivity with speeds greater than or equal to 25 Mbps download and 3 Mbps upload (FCC, 2015). The Organisation for Economic Co-Operation and Development (OECD), an organization based in France that collects and distributes international economic and social data, considers broadband any connection with speeds of at least 1 to 1.5 Mb/s (the lowest tier they measure) (OECD, 2016).

While the FCC defines broadband as connections equal to or greater than 25 Mbps upload and 3 Mbps download, actual speeds in the U.S. are generally slower, but they continue to rise. One source ranks the U.S. 16th internationally with an average download speed of 12.6 Mb/s. South Korea is at the top of the international list at 20.5 Mb/s download speeds. The global average is 5.1 Mb/s (Belson, 2015).

Both wired and wireless broadband penetration rates continue to grow. The OECD estimates that the penetration rate has increased to nearly 70% within the 34 country OECD group. (OECD, 2014). As of 2015 wired broadband penetration rates of the 34 OECD countries average 28.79%, with Switzerland leading the list with a 50.55% wired broadband penetration rate. The U.S. is at 32.12%. (OECD, 2016).

In terms of wireless broadband, the OECD average penetration rate is 85.42%. Finland leads this list at 138.76% (OECD, 2016). In 2014, a total of six countries (Australia, Denmark, Finland, Korea, Japan, and Sweden) had eclipsed the 100% penetration mark (OECD, 2014). In just one year that list increased to 10 countries (Australia, Denmark, Estonia, Finland, Japan, Korea, New Zealand, Sweden, Switzerland, and the U.S.) (OECD, 2016). With the exponential growth of tablets and smartphones, it is becoming more and more common for people to have multiple access points to broadband services.

The increasing connection speeds associated with broadband technology allow for users to engage in such bandwidth intensive activities such as “voice-over-Internet-protocol” (VoIP) including video phone usage, “Internet protocol television” (IPTV) including increasingly complex video services such as Verison’s FiOS service, and interactive gaming. Additionally, the “always on” approach to broadband allows for consumers to easily create wireless home networks.

A wireless home network can allow for multiple computers or other devices to connect to the Internet at one time. Such configurations can allow for wireless data sharing between numerous Internet protocol (IP) devices within the home. Such setups can allow for information to easily flow from and between devices such as desktop computers, laptop computers, tablets, smartphones, and audio/video devices such as stereo systems, televisions, and DVD players.

As an example, with a home wireless broadband network you could view videos on your television that are stored on your computer or listen to music that is stored on your computer through your home theater system. Additionally, video services such as Netflix and Hulu allow subscribers to access certain content instantly. The key device in most home networks is a residential gateway, or router. Routers are devices that link all IP devices to one another and to the home broadband connection.

This chapter briefly reviews the development of broadband and home networks, discusses the types and uses of these technologies, and examines the current status and future developments of these exciting technologies.

Background

Broadband networks can use a number of different technologies to deliver service. The most common broadband technologies include digital subscriber line (DSL), cable modem, satellite, fiber cable networks, and wireless technologies. Thanks in part to the Telecommunication Act of 1996, broadband providers include telephone companies, cable operators, public utilities, and private corporations.

DSL

Digital subscriber line (DSL) is a technology that supplies broadband Internet access over regular telephone lines with service being provided by various local carriers nationwide. There are several types of DSL available, but asymmetrical DSL (ADSL) is the most widely used for broadband Internet access. “Asymmetrical” refers to the fact that download speeds are faster than upload speeds. This is a common feature in most broadband Internet network technologies because the assumption is that people download more frequently than upload, and they download larger amounts of data.

With DSL, the customer has a modem that connects to a phone jack. Data moves over the telephone network to the central office. At the central office, the telephone line is connected to a DSL access multiplexer (DSLAM). The DSLAM aggregates all of the data coming in from multiple lines and connects them to a high-bandwidth Internet connection.

A DSL connection from the home (or office) to the central office is not shared. As such, individual connection speeds are not affected by other users. However, ADSL is a distance sensitive technology. This means that the farther your home is from the central office, the slower your connection speed will be. Also, this technology only works within 18,000 feet (about 3 ½ miles) of the central office (though “bridge taps” may be used to extend this range a bit).

ASDL typically offers download speeds up to 3 Mb/s. Some areas have more advanced DSL services called ADSL2, ADSL2+, and more recently ADSL 2++ (sometimes referred to ADSL 3 or ADSL 4). These services offer higher bandwidth, up to 12 Mb/s with ADSL2, 24 Mb/s with ADSL2+, and 45 Mb/s with ADSL 2++. Prices vary from a low of $29.95 per month for 3 Mb/s download to $65 per month for up to 45 Mb/s with AT&T’s DSL service (AT&T, n.d.).

FTTN

Fiber-to-the-node is a hybrid form of DSL often times referred to as VDSL (very high bit-rate DSL). This service, used for services such as Verizon’s FiOS and AT&T’s U-verse in most areas (some areas offer purely FTTH, discussed later). FTTN systems generally peak at 100 Mb/s downstream. This system employs a fiber optic cable that runs from the central office to a node in individual neighborhoods. The neighborhood node is a junction box that contains a VDSL gateway that converts the digital signal on the fiber optic network to a signal that is carried on ordinary copper wires to the residence. Verizon’s FiOS service offers speeds from 50 Mb/s for $59.99 a month up to 500 Mb/s downstream and 500 Mb/s for $279.99 per month (Verizon, n.d.).

FTTH

Fiber-to-the-home employs fiber optic networks all the way to the home. Fiber optic cables have the advantage of being extremely fast (speeds up to 1 Gb/s) and are the backbone of both cable and telecommunications networks. Extending these networks to the home is still somewhat rare due to cost constraints. However, costs are coming down, and at least one Internet company made a metropolitan area a high speed Internet guinea pig.

In February 2012 Google announced that it would begin its test of high speed FTTH by wiring the twin cities of Kansas City, Kansas and Kansas City, Missouri with fiber optic cabling and networks cable of generating speeds up to 1 Gb/s (Kansas City is Fiber-Ready, 2012). As of early 2016 the service is also available in Austin, Texas, Atlanta, Georgia, Nashville, Tennessee, and Provo, Utah and Google is planning to expand this service to 17 other cities in 14 states across the country (Google fiber, 2016).

Cable Modem

Cable television providers also offer Internet service. In their systems, a customer’s Internet service can come into the home on the same cable that provides cable television service and for some, telephone service.

With the upgrade to hybrid fiber/coaxial cable networks, cable television operators began offering broadband Internet access. But how can the same cable that supplies your cable television signals also have enough bandwidth to also supply high speed Internet access? They can do this because it is possible to fit the download data (the data going from the Internet to the home) into the 6 MHz bandwidth space of a single television channel. The upload speed (the data going from the computer back to the Internet) requires only about 2 MHz of bandwidth space.

In the case of Internet through a cable service, the signal travels to the cable headend via the cable modem termination system (CMTS). The CMST acts like the DSLAM of a DSL service. From the cable headend, the signal travels to a cable node in a given neighborhood. A coaxial cable then runs from the neighborhood node to the home.

Cable modems use a standard called “data over cable service interface specifications” (DOCSIS). First generation DOCSIS 1.0, which was used with first-generation hybrid fiber/coax networks, was capable of providing bandwidth between 320 Kb/s and 10 Mb/s. DOCSIS 2.0 raised that bandwidth to up to 30 Mb/s (DOCSIS, n.d.). DOCSIS 3.0 provides bandwidth well in excess of 100 Mb/s. In fact, some modem chipsets can bond up to eight downstream channels thus creating the possibility of delivering up to 320 Mb/s (DOCSIS 3.0, 2009). More recently DOCSIS 3.1 is reportedly able to provide speeds of up to 10 Gb/s downstream and up to 1 Gb/s upstream (Featured technology, nd).

According to the Organisation for Economic Cooperation and Development (OECD), approximately 31.5% of all Internet households receive their service from cable providers (see Figure 19.1).

Figure 19.1

Fixed (Wired) Broadband Subscriptions, by Technology, June 2015

Source: OECD (2015)

More and more cable Internet providers are moving toward FTTN systems (e.g. Verizon’s FiOS and Comcast’s XFINITY). As such it is becoming increasingly difficult to accurately compare costs and speeds of traditional cable modem Internet access. However, Internet services provided by one of the nation’s largest ISPs, Comcast, range in cost from about $50 per month for 25 Mb/s download speeds to up to $83 per month for 150 Mb/s service. Prices for cable broadband service are usually lower when bundled with other services (XFINITY, n.d.).

Although cable Internet provides fast speeds and, arguably, reasonable rates, this service is not without problems. Unlike DSL, cable Internet users share bandwidth. This means that the useable speed of individual subscribers varies depending upon the number of simultaneous users in their neighborhood.

Satellite

For those people who live out of DSL’s reach and in rural areas without cable, satellite broadband Internet access is an option. With this service, a modem is connected to a small satellite dish which then communicates with the service providers’ satellite. That satellite, in turn, directs the data to a provider center that has a high-capacity connection to the Internet.

Satellite Internet service cannot deliver the bandwidth of cable or DSL, but speeds are a great improvement over dial-up. For example, HughesNet offers home service with 10 Mb/s download and 1 Mb/s upload for $79.99 a month. Its highest speed service for the residential market, Power Max, offers 15 Mb/s download and 2 Mb/s upload for $159.99 a month (HughesNet, n.d.). The cost is not the only disadvantage, as most satellite Internet providers impose a daily data limit too.

Wireless

There are two primary types of wireless broadband networks: mobile and fixed. Mobile broadband networks are offered by wireless telephony companies and employ 3G and 4G networks (discussed in more detail in Chapter 21). Second generation (2G) mobile broadband networks generally use the Enhanced Data GSM Environment (EDGE) protocol (some refer to this as 2.75G because it is better than traditional 2G, but not quite at the level of true 3G networks). Third generation (3G) networks generally use Evolution, Data Optimized (EVDO), or High-Speed Uplink Packet Access (HSUPA). Fourth generation (4G) networks use Long Term Evolution (LTE).

In January 2012 the International Telecommunication Union agreed on specifications for “IMT-Advanced” mobile wireless technologies (this includes what is commonly referred to as LTE-Advanced in the U.S.). It is this technological standard that is employed in 4G mobile broadband networks and is touted as being “at least 100 times faster than today’s 3G smartphones” (ITU, 2012b, para. 5).

Fixed broadband wireless networks use either Wi-Fi or WiMAX. Wi-Fi uses a group of standards in the IEEE 802.11 group to provide short-range, wireless Internet access to a range of devices such as laptops, cellphones, and tablets. Wi-Fi “hotspots” can be found in many public and private locations. Some businesses and municipalities provide Wi-Fi access for free. Other places charge a fee.

WiMAX, which stands for worldwide interoperability for microwave access, is also known as IEEE 802.16. There are two versions: a fixed point-to-multipoint version and a mobile version. Unlike Wi-Fi which has a range of 100 to 300 feet, WiMAX can provide wireless access up to 30 miles for fixed stations and three to ten miles for mobile stations (What is Wi-MAX, n.d.). In 2012 Clearwire, a WiMAX service, was acquired by Sprint. The expectation, at the time, was that WiMAX coverage would rapidly grow. However, at the end of 2015, Sprint intends to shutter its entire WiMAX service (Update, 2015).

BPL

Broadband over power line (BPL) was, at one time, thought to be the wave of the future. Given that power lines went into every home it was easy to understand how convenient it would be to use these cables to send broadband data into homes. The modem would actually be plugged into an electrical outlet in the subscriber’s home as a means of obtaining the service. However, several factors have caused this technology to lose its appeal. BPL is quite susceptible to interference from radio frequencies, and other broadband services provide a faster and more reliable connection. Today this technology, as it applies to bringing Internet into the home, is pretty much obsolete. The use of this technology within the home, however, is still ongoing. The primary manner in which BPL is used in the home is simply to help increase the range of in-home Wi-Fi connectivity (Courtney, 2013).

Home Networks

Computer networking was, at one time, only found in large organizations such as businesses, government offices, and schools. The complexity and cost of such networking facilities was beyond the scope of most home computer owners. At one time, a computer network required the use of an Ethernet network and expensive wiring called “Cat” (category) 5 (or, more recently, “Cat 6, 7, and soon to be 8). Additionally, a server, hub, and router were needed. And all of this required someone in the household to have computer networking expertise as network maintenance was regularly needed.

Several factors changed the environment to allow home networks to take off: broadband Internet access, multiple computer households, and new, networked consumer devices and services. Because of these advances, a router (costing as little as $30) can be quickly installed. This router essentially splits the incoming Internet signal and sends it (either through a wired or wireless connection) to other equipment in the house. Computers, cellphones, tablets, televisions, DVD players, stereo receivers, and other devices can be included within the home network. As technology and connectivity evolves we see more and more home appliances like security systems, thermostats, refrigerators, ranges, washers, and dryers include Wi-Fi connectivity.

With a router, home network users can, among other things, send video files from their computer to their television; they can send audio files from their computer to their stereo receiver; they can send a print job from their cellphone to their printer; or with some additional equipment, they can use their cellphone to control home lighting and other electrical devices within the home.

There are two broad types of home networks:

•  Wired networks—including ethernet, phone lines, and power lines

•  Wireless networks—including Wi-Fi, Bluetooth, and Zigbee

When discussing each type of home network, it is important to consider the transmission rate, or speed, of the network. Regular file sharing and low-bandwidth applications such as home control may require a speed of 1 Mb/s or less. The MPEG-2 digital video and audio from DBS service requires a speed of 3 Mb/s, DVD-quality video requires between 3 Mb/s and 8 Mb/s, and compressed high-definition television (HDTV) requires around 20 Mb/s. Not all ISPs provide these higher speeds and not all home networking technology supports the transmission of these higher speeds.

Wired Networks

Traditional networks use Ethernet, which has a data transmission rate of 10 Mb/s to 100 Mb/s. There is also Gigabit Ethernet, used mostly in business, that has transmission speeds up to 1 Gb/s. Ethernet is the kind of networking commonly found in offices and universities. As discussed earlier, traditional Ethernet has not been popular for home networking because it is expensive to install and maintain and difficult to use. To direct the data, the network must have a server, hub, and router. Each device on the network must be connected, and many computers and devices require add-on devices to enable them to work with Ethernet. Thus, despite the speed of this kind of network, its expense and complicated nature make it somewhat unpopular in the home networking market, except among those who build and maintain these networks for offices.

Many new housing developments come with “structured wiring” that includes wiring for home networks, home theatre systems, and other digital data networking services such as utility management and security. One of the popular features of structured wiring is home automation including the ability to unlock doors or adjust the temperature or lights. New homes represent a small fraction of the potential market for home networking services and equipment, so manufacturers have turned their attention to solutions for existing homes. These solutions almost always are based on “no new wires” networking solutions that use existing phone lines or power lines, or are wireless.

Phone lines are ideal for home networking. This technology uses the existing random tree wiring typically found in homes and runs over regular telephone wire—there is no need for Cat 5 wiring. The technology uses frequency division multiplexing (FDM) to allow data to travel through the phone line without interfering with regular telephone calls or DSL service. There is no interference because each service is assigned a different frequency.

The Home Phone Line Networking Alliance (HomePNA) has presented several standards for phone line networking. HomePNA 1.0 boasted data transmission rates up to 1 Mb/s. It was replaced by HomePNA (HPNA) 2.0, which boasts data transmission rates up to 10 Mb/s and is backward-compatible with HPNA 1.0. HomePNA 3.1 provides data rates up to 320 Mb/s and operates over phone wires and coaxial cables, which makes it a solution to deliver video and data services (320 Mbps, n.d.).

In 2013, the HomePNA merged with the Home-Grid Forum. This body has developed a new wired home networking standard referred to as G.hn. This new standard is expected to allow for in-home networks to transfer data at speeds of up to 1 Gb/s. With the demand for more and more data to be pushed across home networks, thanks to technological evolutions such as HDTV and, increasingly, 4k video content, higher transmission speeds will be expected (Claricoats, 2016).

Wireless

The most popular type of home network is wireless. Currently, there are several types of wireless home networking technologies: Wi-Fi (otherwise known as IEEE 802.11a, 802.11b 802.11g, 802.11n, and 802.11ac), Bluetooth, and wireless mesh technologies such as ZigBee. Mesh technologies are those that do not require a central control unit.

Wi-Fi, Bluetooth, and ZigBee are based on the same premise: low-frequency radio signals from the instrumentation, science, and medical (ISM) bands of spectrum are used to transmit and receive data. The ISM bands, around 2.4 GHz, not licensed by the FCC, are used mostly for microwave ovens, cordless telephones, and home networking. Two standards, 802.11a and 802.11ac operate at the higher 5 GHz frequency.

Wireless networks utilize a transceiver (combination transmitter and receiver) that is connected to a wired network or gateway (generally a router) at a fixed location. Much like cellular telephones, wireless networks use microcells to extend the connectivity range by overlapping to allow the user to roam without losing the connection (Wi-Fi Alliance, n.d.).

Wi-Fi is the most common type of wireless networking. It uses a series of similarly labeled transmission protocols (802.11a, 802.11b, 802.11g, 802.11n, and 802.11ac). Wi-Fi was originally the consumer-friendly label attached to IEEE 802.11b, the specification for wireless Ethernet. 802.11b was created in July 1999. It can transfer data up to 11 Mb/s and is supported by the Wi-Fi Alliance. A couple years later 802.11a was introduced, providing bandwidth up to 54 Mb/s. This was soon followed by the release of 802.11g, which combines the best of 802.11a and 802.11b, providing bandwidth up to 54 Mb/s. The 802.11n standard was released in 2007 and amended in 2009 and provides bandwidth over 100 Mb/s (Mitchell, n.d.). The 802.11ac standard, released in 2012 allows for speeds up to 1.3 Gb/s. However, because this standard will operate only in the 5 GHz frequencies, the transmission range of this Wi-Fi standard could be smaller than that of 802.11n Wi-Fi (Vaughan-Nichols, 2012).

There are two other emerging standards as well. Currently, the 802.11ad standard operates in the 60 GHz frequencies with throughput speeds up to 7 Gb/s (Poole, n.d.a). Another standard is also in the developmental stages. The 802.11af or “White-Fi” standard would utilize low power systems working within “white space” (the unused frequency spectrum space between television signals). There are two primary benefits to this approach. Using frequencies in this portion of the spectrum would allow for greater coverage areas. Additionally, this standard could accommodate greater bandwidth. While this standard is still being developed, it does look promising (Poole, n.d.b).

Because wireless networks use so much of their available bandwidth for coordination among the devices on the network, it is difficult to compare the rated speeds of these networks with the rated speeds of wired networks. For example, 802.11b is rated at 11 Mb/s, but the actual throughput (the amount of data that can be effectively transmitted) is only about 6 Mb/s. Similarly, 802.11g’s rated speed of 54 Mb/s yields a data throughput of only about 25 Mb/s. Tests of 802.11n have confirmed speeds from 100 Mb/s to 140 Mb/s (Haskin, 2007). Actual speed of the 802.11ac protocol are expected to top out at about 800 Mb/s (Marshall, 2012).

Security is an issue with any network. Wi-Fi uses two types of encryption: WEP (Wired Equivalent Privacy) and WPA (Wi-Fi Protected Access). WEP has security flaws and is easily hacked. WPA fixes those flaws in WEP and uses a 128-bit encryption. There are two versions: WPA-Personal that uses a password and WPA-Enterprise that uses a server to verify network users (Wi-Fi Alliance, n.d.). WPA2 is an upgrade to WPA and is now required of all Wi-Fi Alliance certified products (WPA2, n.d.).

While the most popular version of Wi-Fi can transmit data up to 140 Mb/s for up to 150 feet (depending upon which protocol), Bluetooth was developed for short-range communication at a data rate of up to 3 Mb/s and is geared primarily toward voice and data applications. Bluetooth technologies are good for transmitting data up to 10 meters. Bluetooth technology is built into devices such as laptop computers, music players (including car stereo systems), and cellphones.

Bluetooth-enhanced devices can communicate with each other and create an ad hoc network. The technology works with and enhances other networking technologies. Bluetooth 4.0 is the current standard. The main advantage of Bluetooth 4.0 is that it requires less power to run thus making it useable in more and more (and smaller and smaller) devices (Lee, 2011).

The latest versions of Bluetooth are versions 4.1 and 4.2. Version 4.1 had limited noticeable changes aside from better security encryption. Version 4.2, however, saw an increase in data transfer rates up to 2.5 times faster than v. 4.0 (Bluetooth 4.2, n.d.).

ZigBee, also known as IEEE 802.15.4, is classified, along with Bluetooth, as a technology for wireless personal area networks (WPANs). Like Bluetooth 4.0 ZigBee’s transmission standard uses little power. It uses the 2.4 GHz radio frequency to deliver data in numerous home and commercial devices (ZigBee, n.d.).

Usually, a home network will involve not just one of the technologies discussed above, but several. It is not unusual for a home network to be configured for HPNA, Wi-Fi, and even traditional Ethernet. Table 19.1 compares each of the home networking technologies discussed in this section.

Residential Gateways

The residential gateway, also known as the broadband router, is what makes the home network infinitely more useful. This is the device that allows users on a home network to share access to their broadband connection. As broadband connections become more common, the one “pipe” coming into the home will most likely carry numerous services such as the Internet, phone, and entertainment. A residential gateway seamlessly connects the home network to a broadband network so all network devices in the home can be used at the same time.

Working Together—The Home Network and Residential Gateway

A home network controlled by a residential gateway or central router allows multiple users to access a broadband connection at the same time. Household members do not have to compete for access to the Internet, printer, television content, music files, or movies. The home network allows for shared access of all controllable devices.

Technological innovations have made it possible to access computer devices through a home network in the same way as you would access the Internet. Televisions and Blu-ray DVD players regularly come configured with hardware that allows for accessing streamed audio and video content without having to funnel it through a computer.

Cellphone and tablet technology is more regularly being used to access home networks remotely. With this technology it is now possible to set your DVR to record a show or to turn lights on and off without being in the home. The residential gateway or router also allows multiple computers to access the Internet at the same time. This is accomplished by creating a “virtual” IP address for each computer. The residential gateway routes different signals to appropriate devices in the home.

Home networks and residential gateways are key to what industry pundits are calling the “smart home.” Although having our washing machine tell us when our clothes are done may not be a top priority for many of us, utility management, security, and enhanced telephone services are just a few of the useful applications for this technology. Before these applications can be implemented, however, two developments are necessary. First, appropriate devices for each application (appliance controls, security cameras, telephones, etc.) have to be configured to connect to one or more of the different home networking topologies (wireless, HPNA,). Next, software, including user interfaces, control modules, etc., needs to be created and installed. It is easy to conceive of being able to go to a web page for your home to adjust the air conditioner, turn on the lights, or monitor the security system, but these types of services will not be widely available until consumers have proven that they are willing to pay for them.

Broadband technology can be used to improve home networks to allow for the control of home appliances, heating/cooling systems, sprinkler systems, and more. This allows for homeowners to continually and expeditiously monitor resource consumption. According to the FCC’s National Broadband Plan, consumers who can easily monitor their own consumption are more likely to modify their usage thus eliminating or at least reducing waste.

Table 19.1

Comparison of Home Networking Technologies

Protocol	How it Works	Standard(s)	Specifications
Ethernet	Uses Cat 5, 5e, 6, 6a, 7, or 8 wiring with a server and hub to direct traffic	IEEE 802.3xx IEEE 802.3.1	10 Mb/s to 10 Gb/s
HomePNA/HomeGrid Forum	Uses existing phone lines and OFDM	HPNA 1.0 HPNA 2.0 HPNA 3.0 HPNA 3.1 G.hn	1.0, up to 1 Mb/s 2.0, 10 Mb/s 3.0, 128 Mb/s 3.1, 320 Mb/s 1 Gb/s
IEEE 802.11a Wi-Fi	Wireless. Uses electro-magnetic radio signals to transmit between access point and users.	IEEE 802.11a 5 GHz	Up to 54 Mb/s
IEEE 802.11b Wi-Fi	Wireless. Uses electro-magnetic radio signals to transmit between access point and users.	IEEE 802.11b 2.4 GHz	Up to 11 Mb/s
IEEE 802.11g Wi-Fi	Wireless. Uses electro-magnetic radio signals to transmit between access point and users.	IEEE 802.11g 2.4 GHz	Up to 54 Mb/s
IEEE 802.11n Wi-Fi	Wireless. Uses electro-magnetic radio signals to transmit between access point and users.	IEEE 802.11n 2.4 GHz	Up to 140 Mb/s
IEEE 802.11ac Wi-Fi	Wireless. Uses electro-magnetic radio signals to transmit between access point and users.	IEEE 802.11ac 5 GHz	Up to 1.3 Gb/s
IEEE 802.11ad Wi-Fi	Wireless. Uses electro-magnetic radio signals to transmit between access point and users.	IEEE 802.11ad 60 GHz	Up to 7 Gb/s
Bluetooth	Wireless.	v.1.0 (2.4 GHz) v.2.0 + (EDR) v.3.0 (802.11) v.4.0 (802.11) v.4.1 (802.11) v.4.2 (802.11)	v.1.0 (1 Mb/s) v.2.0 (3 Mb/s) v.3. 0 (24 Mb/s) v.4.0 (24 Mb/s + lower power) v.4.1 (added security + lower power) v.4.2 (approx. 50 Mb/s + lower power + added security)
Powerline	Uses existing power lines in home.	HomePlug v1.0 HomePlug AV HPCC HomePlug AV2	v. 1 (Up to 14 Mb/s) AV (Up to 200 Mb/s) AV2 (Up to 500 Mb/s)
ZigBee	Wireless. Uses Electro-magnet radio signals to transmit between access point and users	IEEE 802.15.4	250 Kb/s
Z-wave	Uses 908 MHz 2-way RF	Proprietary	100 Kbps

Source: J. Lombardi and J. Meadows

Net Neutrality

The issue of “net neutrality” continues to circulate. Currently it is possible for Internet Service Providers to block or prioritize access to web content. The Obama administration and the FCC, however, want to prevent this from happening. The proponents of net neutrality believe this is a free speech issue. They suggest that ISPs who block or prioritize access to certain Web content can easily direct users to certain sites and away from others or increase the prices for access to certain content. Supporters of the current system believe that new net neutrality regulations would serve only to minimize investment (Bradley, 2009). On April 6, 2010 the court ruled that the FCC has only limited power over Web traffic under current law. As such, the FCC cannot tell ISPs to provide equal access to all Web content (Wyatt, 2010).

Despite this setback, the FCC remains committed to a free and open Internet and will take another crack at the net neutrality issue. In early 2014 regulators reaffirmed this commitment when they unveiled a new plan. The new plan is an attempt to accomplish virtually the same thing as the plan the U.S. Court of Appeals disliked, but with some technical differences the Commission hopes will pass muster. Regulators are concerned that large broadband players such as Verizon and Comcast could have an unfair advantage. The fear is that allowing ISPs to give preferential treatment to some content companies could stifle innovation (Wyatt, 2014).

The issue of “peering” agreements is likely to draw continued attention to the issue of net neutrality. The main fear, that ISPs will deliberately alter pass through rates of various content providers, is being realized. Netflix, one of the largest online video content providers in the U.S., is increasingly finding itself battling some of the nation’s largest ISPs. Because of the increased popularity of Netflix and similar content providers, the amount of data being passed through is quickly and exponentially increasing. Internet providers, such as Comcast, that also provide video content, dislike the idea of allocating so much of their bandwidth to competing program providers. This has led to behind the scenes negotiations taking place in order to reach what are being made called “peering” agreements. In exchange for some level of compensation, an ISP will increase the pass through speed for certain content providers (Gustin, 2014). This is the type of deal Netflix made with Comcast in spring 2014. In February 2015 the FCC voted, 3-2 to implement net neutrality. However, industry groups and some in Congress are not pleased and believe the FCC has overstepped its authority. Oral arguments in one suit were heard in late 2015. Oral arguments in another suit are set to be heard in early 2016. A decision from the U.S. Court of Appeals in Washington, D.C. could come at any time (Brodkin, 2016).

Recent Developments

In order for the FCC to make significant inroads regarding the National Broadband Plan, significant funds will need to be raised and more spectrum space will need to be allocated for wireless networking (or, more likely, reallocated).

In his 2014 State of the Union address President Obama reaffirmed his commitment to the National Broadband Plan when he called for the connection of 99% of that nation’s schools to high-speed broadband service. This announcement met with quick support from the Fiber to the Home Council. The FTTH Council president, Heather Burnett Gold said “As we noted in our petition recommending this action to the Commission: these experiments will enable local creativity to identify the best options for the future, spurring innovation and job creation, AND empowering and connecting communities in areas of the country often left behind” (Brunner, 2014, para. 6).

Additionally, the FCC is reforming the universal service and inter-carrier compensation systems. The “universal service fund” is basically a surcharge placed on all phone and Internet services. Inter-carrier compensation is basically a fee that one carrier pays another to originate, transport, or terminate various telephony related signals. Jointly these fees generate about $4.5 billion annually. These fees will now go into a new “Connect America Fund” which is designed to expand high-speed Internet and voice service to approximately 7 million Americans in rural areas in a six-year period. Additionally, about 500,000 jobs and $50 billion in economic growth is expected (FCC, 2011a). The implementation of this is ongoing.

In terms of accessing additional spectrum space, there are two ways this can be done. The first way is to tap into the unused space that is located between allocated frequencies. This is referred to as “white space.” In December 2011 the FCC announced that the Office of Engineering and Technology (OET) approved the use of a “white spaces database system.” This is thought to be the first step toward using this available spectrum space. Expanding wireless services would be a primary use for this space (FCC, 2011b). In 2013 Google launched its “white space database.” Through the Internet giant, people can quickly search for unused white space (Fitchard, 2013). Since Google pioneered this business, several other companies have launched white space databases.

There are several primary advantages to claiming and using white space. First, it is currently unused. The primary advantage, however, comes in its coverage area. Compared to, for example, a wireless Wi-Fi router (which can transmit a signal approximately 300 feet under optimal conditions) white space can be used to transmit a signal within an approximate six-mile radius (TV Whitespace, n.d.). If significant progress is going to be made in implementing the goals of the National Broadband Plan, considerably more coverage area will be needed.

The second way, reclaiming space currently allocated to broadcasters, is a bit more challenging. Since the television transition from analog to digital transmissions in June 2009, there has been some unused spectrum space. Because digital television signals take up less spectrum space than analog signals, television broadcasters are generally using only part of the allocated spectrum space. However, very few broadcasters appear willing to give up their currently unused spectrum space, even if they would receive some financial compensation. Nonetheless, in February, 2012, Congress passed a bill that gives the FCC the ability to reclaim and auction spectrum space. Additionally, the legislation creates a second digital television (DTV) transition that will allow for current signals to be “repacked” (Eggerton, 2012). After years of delays, the auction finally commenced in Spring 2016.

Current Status

The statistics on broadband penetration vary widely. The OECD keeps track of worldwide broadband penetration. According to the International Telecommunications Union (ITU), broadband subscribers in the U.S. have gradually increased over the last few years. As Table 19.2 illustrates, an estimated 32.1% of Americans had access to broadband service by mid-2015. Despite this increase, the U.S.’ world standing for broadband access is considered low. The OECD has the U.S. ranked 15th in the world in broadband penetration (see Table 19.3).

The United States currently ranks 15th in the world for broadband penetration with 32.1 subscribers per 100 inhabitants (up from just 18.2 in 2006). The rankings are presented in Table 19.3. The United States has the largest number of broadband subscribers with over 102 million. Fiber connections were most numerous in Korea (26.8) and Japan (21.3). The U.S. is above the OECD average penetration rates for overall broadband usage and for the usage of cable modems. However, the U.S. is below the OECD average for DSL and fiber penetration.

Approximately 365 million people worldwide subscribe to some type of broadband service (up from approximately 321 million just two years ago). Worldwide DSL subscribers are the most abundant, with nearly 561 million subscribers (among the 34 OECD countries). Approximately 263 million people have cable Internet and over 170 million have fiber (see Figure 19.2). As mentioned above, Japan and Korea lead the way in terms of fiber usage. Figure 19.2 shows in Japan, over 75% of all broadband subscribers utilize fiber networks. In Korea that number is about 70%. In the U.S., however, the number is about 10%. The OECD global average for fiber usage is nearly 18%.

Home broadband penetration in the United States has plateaued according to Pew Internet. As of 2015, 67% of U.S. household had broadband service. This is down from a high of 70% in 2013. However, more Americans got their broadband through their smartphone in 2015 with 13% up from 8% in 2013. This trend aligns with the rise of cord cutters, those who discontinue use of cable and satellite television and landline phone services. The study found that smartphone reliant users were at a disadvantage because of data caps and were more likely to stop service because of financial issues. Cost was the number one reason people said they didn’t have home broadband service. (Horrigan & Duggan, 2015).

Table 19.2

U.S. Fixed Broadband Penetration History

Source: OECD (2015)

Table 19.3

Fixed (Wired) Broadband Subscribers per 100 Inhabitants, by Technology, June 2015

Source: OECD (2015)

Factors to Watch

The development of home networking applications will continue to escalate if the overall market share continues to expand. With the increased penetration of tablets and other “smart devices” the home networking device market is expected to grow to more than $45 billion by 2018 (Home Networking, n.d.).

Figure 19.2

Percentage of Fiber Connections in Total Broadband Subscriptions, June 2015

Source: OECD (2015)

Mobile broadband speeds will continue to increase. Currently, 4G LTE networks are becoming more and more prevalent. In theory, 4G can reach speeds of 100 Mb/s down and 50 Mb/s up. More realistically, however, consumers can expect speeds of 5 to 12 Mb/s downstream and 2 to 5 Mb/s upstream (Smith, 2012). Regardless, this is a significant increase over 3G speeds (generally less than 1 Mb/s down).

At some point in 2016 Verizon is expected to begin field-testing 5G wireless technology with some commercial deployment expected in 2017. Wireless 5G technology is predicted to be 30 to 50 times faster than current 4G LTE technology. Put another way, 5G data speeds should eclipse current Google Fiber speeds that use direct wired connections (Cheng, 2015).

Aside from continued market growth and increased speeds, there continue to be several topics that must be continually monitored. They include:

Spectrum Auctions

This issue is still a long way from being fully resolved, but there has been some movement. While the FCC now has the authority to conduct auctions of unused spectrum space, it will still have some difficulty finding anyone willing to give up such space (at least within the television spectrum).

In early 2016 the FCC began to conduct “reverse auctions” for participating stations (i.e. spectrum holders). During the months leading up to the reverse auctions interested participants were told how the maximum amount of money they could receive if they sell their spectrum space. If a station agreed to participate they must agree to sell their spectrum (at the highest price). As the auction continues, over several weeks, the amount of money that will be offered to a station may decline. Only if the amount of the monetary offer declines will stations be allowed to opt out of the process. A variety of factors such as the overall amount of spectrum space the FCC wants to recover, the number of stations within a market, the number of stations within a market who wish to participate in the auction, and the number of stations who accept/reject the offer will help determine the maximum value and continuing value, with some predicting that the value of individual spectrum allocations will likely decline throughout this process (Sefton, 2015).

Usage-Based Pricing

Tied to the net neutrality issue, at least indirectly, is the issue of “usage-based pricing.” Usage-based pricing—where users pay based on how much data they send and receive—is common with cellphone companies, however, it may become a reality with ISPs as well. Currently in the U.S. about 80% of broadband service is provided by cable companies. The increased demand for high bandwidth throughput for video services such as Netflix, along with the content competition such services provide, had caused some cable companies to experience revenue drops. If net neutrality becomes a reality and ISPs are prohibited from tweaking the throughput speeds of some content providers, they may be even more inclined to explore usage-based pricing (Engebretson, 2013).

Getting a Job

There are two primary areas for employment within the broadband industry. The first area involves support and development of the broadband technologies. It is clear that broadband technologies will continue to permeate our work and home settings. With the increase in technology reliance there will be an increase in the need for people to develop, repair, and maintain the hardware and software that run broadband networks.

Another major area of employment is within the content creation industry. With more and more access to devices that can display media content, there will be an increased demand for quality content. This content can come in the form of interactive games and instructional materials, audio content, and video content. As we become a more connected society more and more professional organizations will utilize various forms of content to connect to audiences, customers, clients, and employees.

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