INCENTIVE
Thought you'd enjoy this anecdote on why we lag many developed countries in terms of the broadband speed we get for our dollars. Especially when compared to countries like Japan, South Korea, and the U.K., amongst others.
My cable modem broadband service from Time Warner Cable (aka "RoadRunner), was acting up, so I had a technician come by for a service call.
While he was testing the connection, I asked him why Time Warner Cable didn't offer anything higher than the speeds they're currently offering.
The highest they offer in my area is something they call "Road Runner Extreme", which is supposed to deliver 6 Mbps or better down and a fraction of that up, for around $55/month.
He replied, "Oh, we do offer higher speeds in some areas".
"You do??", I asked, my interest perking up. "Where exactly, and what speeds do you offer?", I added.
"Oh, we offer 15 Mbps downstream and 1.5 upstream", he answered. "But we only provide it in areas where Verizon is offering their FIOS, fiber-optic service".
I was floored by the honesty of his reply.
No senior manager at Time Warner Cable would ever say that on the record of course.
Sometimes the most candid answers are had from the mouth of babes, or the humble field technician, in this case.
FIOS of course, the the multi-billion investment Verizon is making in various parts of the country, to better compete with the cable companies.
Sadly, it isn't available in any of the areas I hang out in yet.
But it's nice to know that Time Warner Cable competes, when they really, really have to.
I hope the FCC gives them a pat on the back.
I was so looking forward to a rant.
One hour south of Silicon Valley, I'm merely one mile south of town where there's suddenly no DSL, no cable internet, no reach from wireless, satellite sucks, but luckily a nearby cell tower pumps 500bps EVDO at $50 after I installed an amp and antenna.
Similar to nearly all infrastructure policy, most firms are adept when investment can be avoided. And across various capital reserves, I think we've paid for mandated improvements we are not getting.
Posted by: Brian Hayes | Saturday, July 07, 2007 at 02:08 PM
http://news.yahoo.com/s/ap/20070708/ap_on_bi_ge/verizon_cutting_copper_1
This link is to a story that explains that when Verizon installs FiOS, you lose the copper cables. This is permanent and removes any competition for the phone and data service. Nice touch eh?
I am in a Verizon pocket in the Bay Area and they have the most expensive, lousiest service for phone and DSL. Unfortunately the competition from cable is just as bad.
Posted by: Alex Tolley | Sunday, July 08, 2007 at 12:17 PM