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.
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.
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.
Driven by past successes with city-owned fiber and Wi-Fi, Newark New Jersey has announced the city is significantly expanding the availability of $20/month broadband service to numerous Newark Housing Authority (NHA) apartment buildings. A partnership with Adrena leans heavily on Newark Fiber, a 288-strand city-owned fiber network that has been a cornerstone of the city’s efforts to revitalize and assist many lower income – and long neglected – Newark neighborhoods.
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.