Businessmen's comments

Businessmen | 8 years ago | on: Cable lobby tries to stop state investigations into slow broadband speeds

For those who are not savvy, I'll do my best to explain why. I am not an expert but have a history in this industry at the technician level.

The worst possible thing that could happen to the telecom industry is for the government to expose how overcapacity most local networks are. We aren't talking Tier 1 Internet backbone networks. We are talking about local ISPs that usually fall into the category of Tier 2 or 3. That means they purchase "transit agreements" from Tier 1 networks to connect their users to the backbone. Most areas I have seen are way over capacity in need of upgraded equipment, too many splices on the cable, or limited bandwidth to their backbone connection to save money on overhead. Nobody wants to spend the money upgrading infrastructure for a market they are already making the maximum profit on. They do not want to send you a letter telling you that their network is miraculously upgrading to fiber and your speed will increase tenfold for no extra cost because copper is going away.

They will maintain the status quo for as long as possible. It is their only option to keep squeezing out every last cent they can on their current equipment and bandwidth agreements. Upgrading gets them very little in ROI. New shit is reserved for new markets like new roads going to high-end subdivisions.

page 1