reply to rahvin112
Re: If one ISP balks though...
said by rahvin112:What if there is a law that says that the current ILEC network would be illegal to ever build again due to building code/safety/aesthetics/to promote competition/flying unicorns/save children/etc, and the current network is grandfathered?
Horseshit. I don't believe a word of what you just said about building utilities. I KNOW it's not true in my state and I doubt there is a state in the union where any of what you said is true. No city, county or state could legally block a Utility from using the public ROW as it would be a clear constitutional violation of equal protection. They can make it expensive and a hassle full of red tape but they cannot legally block it. Contrary to what people on here are have posted not even a franchise agreement with explicit language only allowing a single provider can stop an overbuilder. Such contract terms are unconstitutional and illegal.
Access to the ROW for a utility is a PRIVILEGE, NOT A RIGHT under law. We wouldn't have a PUC/PSC if it were a right.
You just said about grandfathered powers that existing utilities have that newcomers won't ever have.
said by rahvin112:If a city council votes no on your franchise or building permits, your screwed. Just 1 politician who didn't get a donation, and the process is over for you »www.nyc.gov/html/doitt/downloads···2002.pdf
And the final nail in the coffin of overbuilders is that most states have granted ILEC's and other primary utilities the power of eminent domain (to acquire needed property for the common good even if the seller won't voluntarily sell), something the over builder rarely has access to.
·Verizon Online DSL
Fortunately, I'm not talking about NYC. I'm talking about areas where the local city governments don't have their heads firmly shoved where the sun don't shine and know that their towns will dwindle/die if they can't attract next-gen, preferably high-tech industry (and the workers that go with them) into the area. I'm not talking about towns where there's the ILEC deploying VDSL and the MSO pushing 50/10 DOCSIS 3. I'm talking about areas where the ILEC's nearest fiber is in the nearest city with population > 200,000 and you're in a town of 30,000, 10,000 or 3,000, and where (as such) the cable provider can upgrade (or not) at their leisure. In those towns you snag a few key business accounts as the new provider, then build out to lower-tier areas with the blessing of a city government that sees broadband as an economic development boon.
FWIW, costs are MUCH less than $10k per subscriber unless you're talking about very, VERY low-density areas, at which point you have no competition and an 80%+ take rate for whatever you can provide, as long as it marginally beats 3G service, which inevitably reaches 1000/500 and no more. Costs are closer to $2000 per subscriber, which are steep but something you can amortize over the long run. You just hang in there, compete on price when needed and compete on service quality and speed at all other times.
At any rate, I was talking about a provider who already has a network established and whose former bottleneck was cheap bandwidth availability. Building out a whole new network is expensive, but if you're competing against Frontier Communications might actually be a viable operation. Or if you're competing against CenturyLink and are willing to offer something better than 25/2 for $85 per month.