U.S. broadband providers invested $78 billion in network infrastructure in 2014, according to a new analysis of capital expenditures data for wireline, wireless and cable broadband providers. The 2014 investment expenditure was $3 billion, or 4 percent, greater than the $75 billion invested in 2013 and $14 billion, or 22 percent, greater than the $64 billion invested just five years ago in 2009 amidst the financial crisis.Of the 2014 total, the wireline industry invested $28 billion, or 36 percent of the industry aggregate, compared to 43 percent for wireless and 21 percent for cable.
From 1996 through 2014, broadband providers have made $1.4 trillion in capital investments with wireline providers investing more than $720 billion, or 52 percent of this total, compared to 32 percent for wireless and 16 percent for cable. These surging investment levels have taken place during a period of light regulation, which has come to an abrupt end with the Federal Communications Commission’s (FCC) decision(link is external) to impose public utility rules on broadband providers. It is difficult to predict the near-term impact of this decision on investment, but numerous economic analyses(link is external) forecast negative long-term consequences on investment, innovation and other long-term economic benefits that come with broadband investment. Continue reading
Drew Clark, Publisher, BroadbandBreakfast.com
LEXINGTON, Kentucky, September 16, 2015 – Fiber-optics is now the default mode for deploying high-speed internet throughout the country, even including rural areas, said the head of the Federal Communications Commission‘s office of strategic planning.
Everywhere the country has been able to get an electric line, it ought to be able to get a fiber cable, said Jonathan Chambers, chief of the office, widely regarded as the FCC think tank for technological advancement. Continue reading
Get a Clue (Photo credit: Wikipedia)
This article is a bit late, but the subject is still pertinent. These technology bloggers do not have any idea of how the communications industry operates. It really doesn’t matter if companies consolidate across geographical boundaries because the companies are not competing against each other in the first place. The number of choices that a consumer has remains constant in this transaction. The premise of this article is flawed, but coming from Gawker Media it is no surprise.
I find it ironic that the author complains of not enough competition then lauds efforts by the government to get into the business which is the ultimate monopoly. These kiddies think that the government will solve all of their problems while in reality they care even less about service quality and customer service than commercial service providers. I totally agree that more competition will be health for consumers but stopping this transaction will not do anything to improve that situation.
America woke up to some frustrating news today. Charter, the fourth-largest cable company in America, wants to buy Time Warner Cable, the second-largest, as well as Bright House, the tenth-largest. If the deal goes through it’s going to affect come 23 million internet customers directly. Not in a good way.
Major cable mergers like this one and, like the failed Comcast acquisition of Time Warner Cable, stand to further wreck the already terrible state of America’s broadband.
As telecoms trade groups file briefs in Federal courts, objecting to the FCC’s classification of ISPs at “common carriers,” (as they did with the railroads, long ago, when Rockefeller was hustling the lines to screw his competitors), Google pointed out that all Net Neutrality means is the right for all content to be served equally slowly.
Milo Medin, a VP at Google Fiber, highlighted some of the ways in which policy could improve access to abundant broadband. His comments were reported on Fierce Telecom. Continue reading
The FCC acknowledges that all packets are not equal, and that some can benefit from a little prioritization over other packets that are not time sensitive. OTT providers can take advantage and benefit from this fact to deliver a quality of service equivalent to the incumbent providers.
Online television is taking off in a major way, and now some of the biggest providers are looking for assurances that they can keep delivering their content reliably. According toThe Wall Street Journal, HBO, Showtime, and Sony have all been speaking with internet providers, including Comcast, about the possibility of being treated as “specialized services,” separating them out from other internet traffic and essentially giving them a fast lane to consumers. Though fast lanes are explicitly prohibited under the FCC‘s new net neutrality rules, these fast lanes actually fall in a strange gray area that’s yet to be explored. Continue reading
Opponents of new regulations from the Federal Communications Commission are warning that the agency will inadvertently ruin the future of TV.
In comments filed to the FCC this week, industry and advocacy groups warned that the plan would unnecessarily interfere with the free market and stunt the growth of a nascent service. Continue reading
Jamie McGee, email@example.com
Tullahoma, Tennessee (Photo credit: Wikipedia)
NORMANDY, Tenn. – It’s usually between the 10th and the 15th day of the month when Clifton and Joanna Miller’s satellite Internet account hits its data cap. Clifton, a lawyer, and Joanna, a sixth-grade math teacher, are unable to work from home. Their 16-year-old daughter, who depends on access for homework, takes a laptop to her grandmother’s house nearby to complete her assignments until a new month begins.
The Millers’ house is less than a mile from Tullahoma‘s city limit, but under state law, the Tullahoma Utilities Board cannot extend its high-speed fiber Internet network outside its electric service footprint. They would settle for basic broadband from other providers, but those companies — AT&T and Charter Communications — don’t reach his neighborhood. Continue reading