We have long been arguing that the telephone and cable companies are not sufficiently investing in the connections needed by communities.
Quarter after quarter, companies offering DSL see decreases in their lines as subscribers jump to cable or fiber-optic alternatives (where available, which is not many places). Recall that AT&T's CEO himself believes DSL to be obsolete.
As this trend continues, most communities will find that a single cable company has a monopoly on high speed broadband access and those willing to settle for slower, less reliable alternatives will have a choice between DSL and wireless options. Susan Crawford has written about this, terming it the Looming Cable Monopoly.
The main reason is that cable is cheaper to upgrade to higher capacity connections than the telephone lines. Unfortunately, due to the reality of natural monopoly, the big cable companies will almost certainly continue to dominate in their communities. It is just too hard and risky for other businesses to challenge their market power.
This is why smart communities are evaluating all their options and determining if a long term public investment in fiber-optic infrastructure would generate enough benefits to justify the high upfront cost.
Ruston, Louisiana officials say they’re throwing in the towel, and will be selling a city-owned fiber network that has existed for the better part of 15 years. City officials say they finalized the decision at a city council meeting earlier this month, though they’d already sent out a Request for Proposal (RFP) for potential bidders as early as February.
Advocates for better Internet access are breathing a sigh of relief in New York as the State Assembly nixed a budget bill amendment that would have undermined the state’s municipal broadband grant program.
Joplin, Missouri has announced a new broadband public-private partnership (PPP) with ALLO Fiber that should help boost competition and lower rates across the city of 52,000. The partnership poses a particular challenge to regional cable giant CableOne, which currently enjoys a monopoly over broadband access across a whopping 83 percent of the city.
The city-owned utility in Chicopee, Massachusetts has adopted the “fiberhood” approach to broadband deployment as it expands affordable access to city residents under the Crossroads Fiber brand. Chicopee Electric Light launched Crossroads Fiber in the summer of 2019 and since then the utility has been expanding access steadily to the rest of the city.
Massachusetts and New York officials hope to entice affordable housing property owners with new grant programs that would pay the retrofitting costs to expand high-speed Internet connectivity into decades-old affordable housing developments. Given that many of these multi-dwelling units (MDUs) were built before the advent of the Internet, a significant number of low-income tenants are living in buildings that are not wired to support reliable broadband connections or where residents can’t afford monopoly provider prices.
Selma, Alabama – and parts of 16 other communities in eight different counties – will soon be connected to a new, $230 million open access fiber network that aims to bring affordable broadband to historically marginalized sections of the Yellowhammer State. The deployment comes courtesy of a public private partnership (PPP) the city has struck with Meridiam Infrastructure and Meridiam-owned YellowHammer networks – an agreement that will launch the expansion of fiber access across Alabama’s Black Belt region.