Phone+ has an article titled:FCC Report Validates Providers' Broadband Uptake Fears. It states that, "About 93 million don’t have the option at all [for broadband], and many of those citizens see the Web as a waste of time and money, according to a new FCC survey." Scary for the Duopoly.
The article continues, "Yet, as the Obama Administration pushes for ubiquitous broadband coverage with stimulus money and a pending strategy, the reality is, the FCC is finally getting to the bottom of some providers’ fears – if we build it, will they come? And the answer is not necessarily yes."
But that point has been proven over and over since 1994. You need a business case. The big issue is that some of the 93M don't even own computers! That's a hurdle! The other issue is what we are seeing with Duopoly companies like RCN: flat or declining consumer subscribers, expensive customer acquisition without good retention due to bundle price wars between the Duopoly of cable and telco.
Luckily, TowerStream, FiberTower and Clearwire aren't actually building outside the major metro areas. As middle mile fiber starts to penetrate rural areas, the business case for Broadband gets a little better.
A problem that the NTIA addresses from Phase 1: Now you have to have a business plan for the network build in Phase 2 applications for BTOP.
Middle mile is easier, but it's also about how many customers do you need to break even? You will be the first provider in some of these areas: do it right, get creative with bundles, use high touch to retain subs. (I can help of course)
Post a Comment