TELECOM Digest OnLine - Sorted: Re: Broadband Competition Must Surely be Working

Re: Broadband Competition Must Surely be Working

hancock4@bbs.cpcn.com
18 Aug 2005 09:56:42 -0700

jmeissen@aracnet.com wrote:

> What has now been confirmed by calls to Verizon is that

Verizon has installed fibre ("FIOS") in my area. However, they have
told me different things:

> - Once the fiber connection is established all services, including
> voice, are moved to the fiber and the copper wires are pulled,
> making it impossible to return to standard DSL in spite of the
> supposed 30-day trial period.

Only subscribers who sign up for FIOS will get fibre to their front
door. It is rather expensive to run the fibre and terminal box
(actually the terminal box is pricey) to your front door. The old
phone loop won't go anywhere.

> - They will absolutely NOT allow connections to other ISP's over
> the fiber connection, essentially limiting ISP's other than
> MSN to dialup customers.

They stressed this is not a regulated service. As such, they can
charge as they wish and run it as they wish. HOWEVER, anyone else can
run fibre just as they did. The cable company -- while it was still a
small outfit -- obviously was able to run fibre, so the field is open to
others.

They also need permission to run these lines, they don't have the
automatic ROW of a standard utility. While my _area_ overall has
FIOS, many specific sections do not have FIOS because permission was
not granted by the appropriate parties.

I also want to point out that this magical "competition" is no
guarantee of lower prices. There are a number of cellular phone
providers, but oddly enough, they all charge about the same and all
seem to be making very good money. That is, competition does NOT
automatically force down prices or improve service. Remember that
technology is better than ever and their costs should be lower than
the past. Economics include a multitude of factors, one of which is
demand.

In other words, right now many of us have a choice between phone
company DSL and cable company broadband. It just so happens that
prices of those are about the same. If a third provider showed up, do
you really think prices would go down? Not likely as long as demand
remained high.

As mentioned, anyone else can come in and run fibre and provide this
service if they wanted to.

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