tag:blogger.com,1999:blog-10424035.post2354601877907126328..comments2023-09-11T08:58:24.710-06:00Comments on Reach Upward: Collectivist BroadbandScott Hinrichshttp://www.blogger.com/profile/11831447472339880148noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-10424035.post-23066800755927457172009-02-02T14:41:00.000-07:002009-02-02T14:41:00.000-07:00Thanks for the insight, Jesse. In the real world,...Thanks for the insight, Jesse. In the real world, it will take public-private partnerships to significantly improve broadband. As experience shows, it is difficult to navigate this type of affair without creating perverse incentives.Scott Hinrichshttps://www.blogger.com/profile/11831447472339880148noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-25783769993512662812009-02-02T14:11:00.000-07:002009-02-02T14:11:00.000-07:00The biggest barrier to broadband competition has b...The biggest barrier to broadband competition has been over a century of government-supported monopolies which has created powerful entrenched incumbencies. Cable isn't as bad as telco, but they frequently negotiate exclusive franchise agreements for any market they enter. Both have worked hard to create a regulatory environment that's complex enough to discourage new entrants and lax enough to let them get away with nearly anything they want.<BR/><BR/>Another big barrier to entrants is the cost to deploy. Pole attachments and trenching are usually 50% or more of the total cost of installation and deploying to existing neighborhoods (often called "brownfields") can cost thousands of dollars per address passed. Most of these systems need a take rate in the 35-40% range to break even, so you can barely support the existing incumbents plus one new entrant before the market is saturated.<BR/><BR/>Attempts to increase competition from the publicly-funded infrastructure have also been a failure. Incumbents, unwilling to open their networks as promised under the Telecommunications Act of 1996, often thwart competitors using their network through billing errors, illegal disconnections, repair delays and frivolous legal and legislative action.<BR/><BR/>It's really time for local communities to be given the ability to find new models on their own. Palo Alto is looking at a public/private partnership that waives pole attachment fees in exchange for operating the network with competing service providers and turning it over to city ownership in 30 years. It's probably one of the more interesting muni models to pop up despite all eyes being focused on systems like UTOPIA.Jesse Harrishttps://www.blogger.com/profile/11468928702710912142noreply@blogger.com