2 ms·
This is sad news for me even though I'm not from Louisville. Backing out of existing market shows that it's even less likely now for them to enter new ones. Th
by takeda 8y ago
This is sad news for me even though I'm not from Louisville. Backing out of existing market shows that it's even less likely now for them to enter new ones.
The main issue is that current companies have extreme control over market thanks to regional monopoly. They can squeeze as much of money from users, because there is no real competition. When a new company enters specific region they can up their speeds, lower price (and even operate at a loss in that specific region), so a competitor will have to leave.
The solution to this requires regulation, and basically a law should mandate to allow leasing infrastructure (the fiber) to others, of course not for free, but for a fee.
Currently if we would have great scenario when we would have 10 ISPs available to choose from, we would need 10 fiber cables to every home. That means if someone chooses one, 9 of them are not used, and all the effort to lay the cable and getting permits was just waste of money. If this is expensive to even company that has "unlimited" amounts of money, like Google it's unrealistic to do for everyone else.
Leasing the physical infrastructure is the key to bring competition back in that market.