Posts Tagged ‘fairpoint’

Broadband to displace POTS

Monday, January 4th, 2010

AT&T has asked the FCC to set a sunset date for Plain Old Telephone Service (POTS) in recent FCC Filings. They reportedly see the light in the wisdom of multiplexed data streams in this fancy IP networking that you are reading.

This has some interesting prospects (and caveats). They call out those that are unwilling to build to profitable areas, yet also imply cost as a reason they are unable to deliver services. They are not allowed to recoup market rates in poorly populated areas due to the nature of State and Federal regulation.

Me? I see it as the same situation being played out that Verzion did in the northeast. They determined that some areas were unprofitable to service. They sold these assets to Fairpoint. Fairpoint has since declared bankruptcy. This also could bolster the AT&T argument, as if they could truly charge what the service cost, would VZ have sold the business lines? Would Fairpoint have filed?

I see this as the need to build another wire to homes. Most homes have phone lines and Power. These existing right-of-ways should always have fiber placed in them. I’m actually in favor of banning new builds of any outside copper plant in the US. This does not mean that I own stock in Fiber optic cabling companies, but that there needs to be a competitive landscape. Where it’s not driven by pure market forces, consumers should get together and build their own infrastructure.

DOCSIS 1.1 and 2 equipment can be had for “cheap” on the secondary market. Even if you build coaxial cables, the cost of delivering services can be quite low.