In all the talk of the need for competition in broadband (or in the mobile space), there is remarkably little attention paid to the difficulties in actually creating competition. A common refrain from the self-interested industry titans (and their many paid flacks) is: "keep the government out of it and let the market decide."
Unfortunately, an unregulated market in telecom tends toward consolidation at best, monopolization at worse. Practicioners of Chicago economics may dispute this, but their theories occur in reality about as frequently as unicorn observations. In our regulatory environment, big incumbents have nearly all the advantages, allowing them to use their advantages of scale to maintain market power (most notably the ability to use cross-subsidization from non-competitive markets to maintain predatory pricing wherever they face even the threat of competition).
The de-regulatory approach of telecom policy over the past 10 or more years has resulted in far less competition among ISPs, something Earthlink hopes to change with a condition of the seeming inevitable NBC-Comcast merger. Requiring incumbents to share their lines with independent ISPs is one policy that would greatly increase competition - but the FCC has refused to even entertain the notion because big companies like AT&T and Comcast are too intimidating for the current Administration to confront.
In the Midwest, Windstream is cutting 146 jobs as part of its acquisition of Iowa Telecom. When these companies consolidate, they can cut jobs to lower their costs... but do subscribers ever see the savings? Not hardly. The result is less competition, which leads to higher prices. Consider that Comcast is the largest cable company, but they are known better for their poor record of customer service than low prices enabled by economies of scale.
We need broadband networks that are structurally accountable to the community, not private shareholders located far outside the community. The solution is not more private companies owning broadband infrastructure, but more private companies offering competing services over next-generation infrastructure that is community owned by coops, non-profits, or local governments.
Photo by therichbrooks on Flickr - used under Creative Commons license.
As the FCC has restored both net neutrality and its Title II authority over Internet access providers, smaller ISPs and municipalities worry the new rules saddle them with burdensome regulations as punishment for the sins of much larger companies. But the FCC, state leaders, and consumer groups insist the rules should be a net benefit all the same.
Utah-based UTOPIA Fiber has added three additional ISPs to its open access network, expanding the total number of partner ISPs to 18 now offering affordable fiber service to residents in the 21 cities UTOPIA serves.
Telecom monopolies have hoovered up the lion’s share of $214 million recently doled out by the Pennsylvania state Broadband Infrastructure Program (BIP), with cooperatives, smaller ISPs, and community-owned networks left largely out in the cold. It’s not a surprising move for a state long considered politically hostile to community-owned and operated broadband networks, though industry experts say this latest round of awards was particularly egregious when it comes to dodgy politics and its total lack of any real transparency.
The Senate voted Thursday evening to pass its Federal Aviation Administration reauthorization package without an amendment that would have funded the Affordable Connectivity Program.
Schoharie County, New York officials have applied for a $30 million New York State ConnectALL grant with the hopes of eventually building a $33 million, county-wide fiber network. The shape and scope of the network has yet to be determined, but the county hopes to build a network that brings affordable access to the rural, agriculture-heavy county.
Tribal nations have unique leverage to resolve conflict between Rural Digital Opportunity Fund (RDOF) projects and Broadband Equity, Access, and Deployment (BEAD) grant funding.