Articles like these are increasingly being written pointing out that lack of true broadband competition is stifling innovation. Cities that have built open-access municipal networks have enjoyed lower pricing and innovative new services. The cost of building that last-mile of fiber is unjustifiable for a public company if they are the only user. Amortize the cost over several service providers and the payback becomes around 5 years which is well within the planning horizon of a city. The incumbents should embrace the use of “other peoples’ money” to offer new and innovative services to increase ARPU.
from the indeed dept
Ryan Single has an excellent piece at Wired that details how incredibly misleading telcos are being in claiming that the FCC’s attempt to reclassify broadband access will lead to less “innovation.” He highlights how far behind other countries the US has fallen, and how hard the telcos seem to work at not competing and not investing in innovation. Basically, Singel points out what many of us have pointed out all along. All of this posturing by telcos is about lowering their own costs (i.e., not investing) and squeezing more money out of customers, in an attempt to please Wall Street:
Last week the OECD released its update on broadband metrics and the United States lags most developing countries in broadband speeds and price. It is interesting to note that the cost per bit for Internet access is about 4 times higher than in countries that have more than two competitors in the market. These figures once again validate the need for local access competition. Our broadband penetration is respectable considering the population density, but we still lag countries with true competition.
The OECD this week released an update to its much-watched set of broadband metrics. The data set now extends through December 2009, and the US continues to look anemic on most OECD measures.
Whenever they actually get a network built…
04:15PM Thursday Apr 22 2010 by Karl Bode
We already knew that Google’s plan to deploy 1 Gbps fiber to the home to a limited area was going to operate as a wholesale operation — with open access allowing ISPs to come in and compete on top of the network (whenever it’s finally built). Part of the reason Google’s deploying the network is so they can show how open access and competition can help keep prices down, service quality up and carriers on their best behavior. The company this week reiterated their dedication to open access, inviting companies like Comcast and AT&T to offer service over the network when it’s finally built: