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Basically every telecom network is built as fiber to the node not fiber to the premises. The nasty truth of all communication and transportation systems is that arteries are cheap and capillaries are expensive. If I am building roads, it is WAY cheaper to just build highways than it is to build the small roads to everyone’s homes. When doing construction for telecom, the payback calculations are based upon “passings” which basically says “if I lay this cable, how many potential subscribers will I get?” which is a function of addressable users and sales modeling. Comcast used to believe that in a new market, competing against att only, they could win more than 50% of customers over just by connecting them to the Comcast network. Please always remember, telecom, and transportation, are not technology businesses, they are real estate businesses. Telecom’s real estate are exclusive operation licenses, the most important of which being wireless spectrum, and the second most important of which being the places where they can exclusively tear up the earth to lay cable. Circling back on my point at the beginning, if we laid fiber to every home, we would not need to upgrade the network connection itself for a long, long time. As it stands now, we have a lot of work to do if we want real high speed options in the future. More fiber to the home, less fiber to distribution nodes!! |
Anyways, I buy said house AT&T comes out and tried to get DSL working, and the lines have been so patched and spliced that they cannot even get 1mbps, so they basically tell me I am screwed that it would not be cost effective to run new copper down a 2 mile stretch and that my only option would be to pay (or band my neighbors together to pay -- All 2 of them) for them to string fiber the whole way. I think it would be something like 70k.
2 Months later Hurricane Irma hits and rips down every poll down our street, and AT&T is forced to restring the whole street due to the fact that they are legally required to provide phone service to every customer in their "exclusive" area or they loose said exclusivity. Fortunately for me they opted to string it with fiber, and provided fiber to the home.
My point is, I don't see how allowing these "exclusive" coverage monopolies does anything but harm the consumer. I imagine a community based provider like the one in the article would be met with a host of legal challenges here.