Difference between revisions of "Last Mile Problem"

Revision as of 18:31, 2 February 2023

In telecommunications and information technology, the Last Mile problem refers to the issue of connecting people to technology in the last leg of delivery within the infrastructure network. The “last leg” delivery is the final link of physical infrastructure that connects internet services to consumers. Examples of physical last mile infrastructure are telephone poles, landlines, fiber-optic cables, coaxial cables etc. The term “Last Mile Problem” originated in the context of communications, but has since spread to the areas of transportation, supply chain logistics, and utilities (e.g. water, natural gas). The issue first rose to prominence with the popularization of landline telephones in the majority of homes in America, but has come into focus as an issue for many logistics managers.

Problems & Background

The Last Mile Problem has become a larger logistics issue that has cascading effects on many services. Within telecommunications, any break in Tier 3 Internet service has Last Mile effects on users. Tier 3 service is the connection between local Internet Service Providers (ISPs) and the end user (retail customer). In 2021, 73% of people in Least-Developed Countries (LDCs) and 38% of people globally did not have access to the Internet, which precludes them from accessing any information or services that the Internet provides. During the 2020 COVID-19 Pandemic, the growth in Internet users accelerated globally, with 800 million more online users in 2021 than there were in 2019. In 2019, there were 4.1 billion internet users globally. In 2021, there were 4.9 users globally, but 2.9 billion people around the world remain unconnected to the Internet. Outside of major metropolitan areas, Last Mile connectivity is an increasingly large cost for ISPs as they do not have the population density and smaller overall area that gives them financial incentive to provide broadband speed Internet access. High Speed internet service is provided by fiber-optic cables, which are prohibitively expensive to install and maintain in less densely populated areas. Last Mile connectivity issues also affect poorer areas as ISPs tend not to upgrade their physical infrastructure (their largest expense) in areas they do not see as economically feasible to do so. This creates an obstruction to the access of information in rural and poor areas and could lead to disparities in education, healthcare, and other areas that depend in some part on access to high-speed Internet. Additionally, some in the American telecommunications field have suggested that the United States Government or local governments should subsidize wireless internet access and this has led to increasing calls for the Internet to be classified as a public utility/service in the United States. This has fueled a debate as to suggested issues of equity surrounding internet access in rural and socio-economically disadvantaged communities around the country. Last Mile connectivity in Telecommunications could pose issues for businesses as well. eCommerce businesses could experience up to a 2% increase in revenue from just a 100ms decrease in latency, some scholars say. Outside of eCommerce platforms specifically, more and more businesses are using the Internet as an important part of their business, with online stores burgeoning in popularity over the course of the 2010s. If Last Mile connectivity for these businesses is poor, it could affect a business’ revenue.

Last Mile & Net Neutrality

Net Neutrality is defined as “The principle that Internet Service Providers must treat all Internet Communications equally, offering users and online content providers consistent rates irrespective of content, website, platform, application, type of equipment, source address, a destination address, or method of communication.” Some Net Neutrality experts have raised concerns about Telecommunications companies taking advantage of laissez-faire Net Neutrality laws to leverage the Last Mile connectivity over consumers. Some concerns that have been raised include speed-throttling, restrictions on accessing websites, and a general lack of high-speed internet that would limit the free flow of information to consumers as they please. Advocates say that this so-called “artificial congestion” would restrict consumers from accessing certain content and allowing ISPs to favor specific websites or content. Additionally, ISPs could use this leverage in order to raise the price of Internet access to consumers or create pay-packages that allow a certain amount of access to the Internet depending on the package the consumer chooses to pay for. An example of artificial congestion can be seen in China, which has a firewall over all users trying to access the Internet within its borders. Internet speeds are artificially slower in China because all content users access over the Internet has to be scanned for content and potentially censored by the government.

Solutions

Fixed Wireless Access (FWA) is a technology that uses radio waves and antennas to send signals to modems that can convert the radio waves into wireless Internet. Scholars have also raised concerns about the barriers to gain a license to provide internet access, particularly in rural, underserved areas. Relaxing procedures and red tape as well as discounting costs surrounding licensing in these areas has been brought forward as a solution that would help providers expand access at a lower barrier to entry. Tax breaks and incentives for ISPs to invest in these areas have also been proposed to make high-speed Internet access more attractive to companies. Another similar proposal is public-private partnerships, which would see ISPs partner with government entities to bring Internet access to traditionally underserved areas, while splitting the cost between taxpayers and the firms. These kinds of solutions have been employed in Brazil, where state tax credits have spurred ISPs to build in rural areas.

References

{{Networks, M. H. O. What Is Last Mile Internet? https://blog.mho.com/what-is-last-mile-internet. Accessed 2 Feb. 2023., Datapath.io. “Understanding Last Mile Internet Access.” Medium, 12 July 2016, https://medium.com/@datapath_io/understanding-last-mile-internet-access-a62ee96c0a00. }}