Clyburn: FCC Needs To Ensure Speed, Price Competition
FCC Commissioner Wants Two Broadband Offerings In Every Market
John Eggerton -- Multichannel News, 3/23/2010 4:57:16 PM
FCC Commissioner Mignon Clyburn plans to tell the House Energy & Commerce Committee that the national broadband plan should make sure there are least two broadband offerings in every market to ensure price and speed competition.
That is according to a copy of her prepared written testimony. "Competition is the lifeblood of investment, innovation, and affordable prices," she tells the committee, adding that absent that competition, cable operators and others have no incentive to improve their service or facilities.
She referred to a cable executive who she said recently told investors "there is simply no need for the company to roll out the faster Internet speeds available today in areas where it does not have competition from another high-speed provider."
She said the same goes for price. "There is little question that where there is limited or no competition, consumers pay higher prices for broadband." She referred to recent price increases for basic service, though she did not single anyone out.
"When these across-the-board increases occur, our role as stewards of the public interest requires us to examine the market carefully and take appropriate action where necessary."
In her statement on the release of the broadband plan, Clyburn talked of a fourth major concern--the impact the proposed broadcast spectrum reclamation proposal could have on diversity. That concern was not echoed in her prepared testimony.
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If assets are not used, who pays for them?
Customers, shareholders, employees. I agree competition is good, but there is a benefit of taking cost/units, and having rate-payers. Problem with that approach is it does not promote innovation and cost control.
Think a better solution is if the population is X/density is Y, then 1 wired competitor is sufficient. Wireless/sattellite is a great solution as another alternative in these markets.
Larger markets, this is not an issue, but the asset utilization problem is the reason the established Mass Market providers (Cable and Telco), don't upgrade to what all agree is the best solution, a fiber to the home solution. They have fiber up to a point in their networks in these markets, due to data growth, they don't have it in their last mile.
Passing 2-4 sites, and getting one, prevents them to upgrade in their existing plant, but when they have to build in new neighborhoods, they put in fiber.
If Municipalities spent more time getting these "kids" to quit fighting in the sandbox, and facilitate a major upgrade project, they would lower the cost of construction by 25-35%, and the Telco/Cable would reap all the well documented benefits of an all fiber network.
Forcing Telco and Cable to compete more on service and product innovation,vs. legacy network solutions using copper/coaxial, would benefit all. An all fiber network, well who knows what cool things Google can develop, along with their competitors.
A Municipality, building its own, because the kids won't play, although I understand their frustration, is pure economic suicide, that will result in tax payers covering the losses later.
I explain more at my website
www.lightthewaysolutions.com
Randy Markway - 3/25/2010 2:37:56 PM EDT -
TWO is competition? Though I love the direction Clyburn is taking, she really needs to do her homework. Two is not competition. Ask anyone who has a choice between DSL and Cable if there's much of a price or speed difference. And considering that price hikes usually hit for both "competitors" at once in areas where there is a duopoly, price collusion is the name of the game.
In Europe and parts of Asia, people have a choice between 5 or more providers. That is real competition. And the prices they pay reflect that. In France people are paying around 40 bucks a month for Internet/Phone/TV with a very fast synchronous connection. Here in the US we're lucky to get just the internet for that price.
bj novack - 3/24/2010 3:50:27 PM EDT
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