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by EKLM-ZK88 3113 days ago
There is an incredible up front cost for wired infrastructure and even Verizon was unable to turn a profit in the long run. Go pull their earnings reports and look at the performance of their wireline division (phone, internet, tv, etc...). It always lost money except for one year where they turned a million or two profit. That's why they sold it off to frontier who will invest the bare minimum and just run it until it breaks. This cost is what's preventing competition. Providers are betting hard on 5g wireless, it requires much less last mile infrastructure (you don't have to run and maintain connections to people's houses).
2 comments

That is an argument that screams for municipal ISPs. However half the country has laws that hinder municipal ISPs. This is the exact type of thing I was talking about in my initial post. Why not put the energy that was behind this movement behind allowing and setting up municipal ISPs?
The municipal ISPs I've heard of (from AMA's on Reddit and such) still have to create a peering contract with Comcast/AT&T because those companies own the lines. And granted, RIGHT NOW, it's not that expensive to peer with them. However, it's my understanding the new FCC just relaxed the rules on how much Comcast can charge businesses that need to use their lines???

"The two specific items to be voted on Thursday include a plan to make it easier for broadband providers to charge other businesses higher prices to connect to the main arteries of their networks." - From a pre-vote article. The vote passed. It includes a link to the document. https://www.nytimes.com/2017/04/19/technology/ajit%2Dpai%2Df...

Ok, so assuming the monopolies aren't just going to let you steal away their business by creating a municipal ISP that uses their lines... You could try and lay your own lines to get around this. However, that's the exact problem Google ran into. Google required cities pass ordinances that allowed them to move Comcast/AT&T lines on the utility poles so that Google could add their own, but the existing ISPs sued saying that the cities did not have the right and won in court. This means Google had to wait for Comcast techs to come out and move the lines for each and every pole, a process which could take months and the ISPs were dragging out just to make Google's life miserable. This battle over the utility poles is something you can research.

So, assuming we're not better than Google, and that laying new lines will be a regulation nightmare, we're left with the option of renting the existing ISP's lines... of which I already stated I don't think would work either because the same anti-regulation mentality that caused the FCC to deregulate NN has also caused them to deregulate pricing protections for business peering.

If this is the case, why do ISPs spend millions fighting against municipal providers?
I would imagine, and correct me if I'm wrong, but a muni isp that started tomorrow wouldn't have a mountain of legacy copper lines that are quickly deteriorating, and cost a ton of money to maintain and replace. They could start right out of the gate running fiber to the home.
Because it gets results.