Friday, June 14, 2013

Gigabit City

I've been taking some time to review the posts at the Community Broadband Networks website. It is replete with a simple and common theme. Cable and telephone duopolies are unwilling to invest in their networks until they see that local governments are willing to build their own. Then, and only then, do cable and telephone companies get the message - and get off their butt.

The local duopoly might do 20, 50 and maybe even 100 mbs for their networks. But few if any dare to offer gigabit. Yes, even here in Salt Lake City, there has been some movement among the duopoly ISPs. But they are loathe to provide gigabit. Maybe they think the demand isn't there. I think they want to build pent-up demand so that they can charge extra high prices for it when it does finally arrive.

There is a gigabit wave rolling through Iowa right now. Businesses in Iowa are realizing that cable and telephone companies are holding them back from the future: The Gigabit City.

The Community Broadband Networks website also notes that there is some bewilderment about the duopoly of cable and telephone companies. No one can fathom why they are dragging their feet.

I think I know why. Grand investments in network upgrades would take a big bite out of the astronomical salaries paid to the board of directors and the CEO. Why, if they spent billions on network upgrades to match Google Fiber, how are the top executives going to pay for their summer homes in Spain and Italy? They must be waiting for another government subsidy to help them out  during these tough economic times.

Could it be said that the cable/telephone duopoly is the greatest threat to America's ability to compete with the rest of the world? Definitely.
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