 espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2
 ·Vitelity VOIP
| Broadband is an add-on product The thing about broadband service in the US is that the vast majority of the coverage is done through networks built for some other purpose.
- DOCSIS (cable TV plant)
- DSL (PSTN infrastructure)
- 3G wireless (Cellular infrastructure)
- Satellite (DBS / TV sat infrastructure)
- BPL (Power utility infrastructure)
The price point for broadband is as low as it is in the US because the last mile connection is being subsidized by other services. Just look at all of the muni-wifi and fiber projects (ie, Utopia) that are struggling financially in trying to deploy an IP-only delivery solution. If we want more competition, we either need to get used to paying more for broadband services or hope some other new killer app comes along with a profitable reason to deliver some type of connection to our homes. |
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EPS
join:2008-02-13
Hingham, MA | Yes- the problem is that the Internet "killer apps" aren't profitable to the ISPs, but to the companies that own the websites- this has been great for the Internet, but it doesn't spur new last-mile investments.
Even the largest private fiber-to-the-home deployment in this country was done to allow the sale of television services- superfast internet is a convenient add-on. |
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| reply to espaeth
Baloney. There's plenty of money for being in the "last mile". The problem is mostly one of logistics, and of the ability to use likely sites.
The utilities have driven up the price of real estate that's needed for IP only distribution.
Ever check the rates for cell tower leases or pole space for fiber? |
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espaethDigital PlumberPremium,MVM
join:2001-04-21
Minneapolis, MN
kudos:2 Reviews:
·Vitelity VOIP
| said by neofast:Baloney. There's plenty of money for being in the "last mile". The problem is mostly one of logistics, and of the ability to use likely sites. The utilities have driven up the price of real estate that's needed for IP only distribution. Ever check the rates for cell tower leases or pole space for fiber? Look at all of the muni-wifi and muni-fiber options that are struggling / failing. These companies are getting preferential pricing for tower and land facilities, yet the operational costs of an IP-only network are still bringing them down.
The MSOs and LECs already have the funding for last-mile delivery covered in their primary services. While some upgrades need to be done at a small number of distribution points (relative to the number of end connections), the overwhelming bulk of the physical plant remains the same when they layer on data services. This is why they can offer broadband services for $40/mo.
For another non-LEC/non-MSO company to come in and start providing broadband service, their entire infrastructure (physical plant + data services) needs to be funded by Internet subscriptions. There's no obvious way this can currently be done in a price competitive manner, which is why we are limited to the companies we have right now. |
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