Les Routledge

US Postal Service Cuts

Wow, the US Post system is catching up to Canada's slow standards. In the new world of Internet systems, all post systems need to catch up to reality.  They are no longer in the letter business. A good first start is to eliminate home delivery of mail and replace it...

Featured News

Profoundly Misguided

The UK government is considering establishing a Green Investment Bank to stimulate investment in strategic technologies.

Evidence given to the committee suggests the UK will need to raise between £200bn and £1 trillion over the next 10 to 20 years if it is to meet the government’s climate change and renewable energy targets.

Traditional sources of private fundraising are only likely to deliver between £50bn and £80bn, accountants Ernst & Young told the committee.

Geist on Broadcasting Foreign Investment

The evolving usage based billing issue has led to calls to drop foreign investment restrictions in the telecom sector as a means to stimulate more intense competition in that market.

The problem is that telecom and Cable operators also own broadcasting operations and opening them up to foreign control raises a number of touchy cultural policy issues.  In a recent post, Michael Geist takes  a look at how other countries approach foreign ownership of broadcast asset.

Hydro News

Manitoba is asking the PUB for an immediate rate increase that will contribute to a trend where over the last 6 years of rate increases running 45% above inflation.

Desorcy also said consumers are paying for dam-building projects, Keeyask and Conawapa, that are years away from being built and are contingent on whether Manitoba Hydro can ink long-term export deals with Minnesota and Wisconsin.

“If they don’t sign those contracts, Hydro is not forecasting the need to build Keeyask in the next 20 years, but these things are already affecting rates,” she said.

Climate News

Grist, which labels itself a beacon in the smog, has broken an earth shaking story

Writing in the journal Public Opinion Quarterly, a research team led by University of Michigan psychologist Jonathon Schuldt reports Republicans are far more skeptical of “global warming” than of “climate change.”

UBB Costing – Guest Post

The following is a Guest Post submitted by Roland Renner.

UBB for Internet Access – The Need for Cost Analysis, Technology Considerations and Service Definitions

The first reaction of many people to the idea of usage based billing is intuitively positive.  People should pay for what they use.  This seems perfectly fair and reasonable.  Specific implementations, however, require cost analysis, and a hard look at technology choices and service definitions.  Only then is it possible to determine if a UBB scheme will help to use resources effectively.

Network services like power and telecoms are provisioned for peak usage.  Customers who require service at the peak times are therefore responsible for the highest cost.  It is usage at the system peak that is the key cost driver of capacity requirements, not just usage alone.  Specific applications of usage based billing, however, do not necessarily reflect the underlying cost drivers.

Another key factor to consider is the time horizon and the technology environment.  Are we dealing with the short term or over several years when we need to consider replacement of current plant?  Are we dealing in a technologically stable environment or one of rapid change?