August 1, 2004

Broadband: Cable, DSL face threats | CNET News.com

This is an excellent summary of the state of broadband in the U.S. IMHO, one important point not explicitly stated is that broadband penetration into all areas of our country, rural as well as urban/suburban, is best promoted by policies that encourage multiple technologies and market economics. Arbitrage and resale of services is merely a transition phase from ubiquitous POTS to broadband everywhere and is not sustainable as a long-term market model. Powell at the FCC has it right in promoting as many alternative technological options for broadband as possible. To foster a regulated expansion of broadband via resale and complex resale rules and pricing models will not get the job done and adds unnecessary overhead to the marketplace. Meanwhile, the FCC has a job to do in promoting options and standards that assure that public safety and effective use of thefrequency spectrum results in no interference that will hinder public or private services.

Excerpt:

"At the same time, wireless and other alternative technologies have been quietly gaining support within the agency. In February 2003, the FCC drafted rules on broadband service over electricity lines that were interpreted as an overture to alternative companies, particularly in areas not served by cable or the Bells. And in May, FCC Chairman Michael Powell said the agency is looking to free up broadcast television spectrum for broadband wireless use. The agency has taken steps to encourage these and other alternatives to today's coaxial-cable and copper-wire lines, including fiber-optic connections to the home."

Here's the vision:

"In this panoply of future technologies, broadband optimists are hoping to make high-speed Net access as common as a cell phone connection, following people into their homes, onto the sidewalks, into automobiles and even inside airplanes. Only then will their vision of a genuine broadband society be achieved."

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