U.S. Internet Users Pay More for Slower Service - Bloomberg - 0 views
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The arrival of commercial Internet communications in the mid-1990s posed a threat to both the phone and cable companies; eventually, the FCC deregulated the entire sector, thinking that competition among various modalities of Internet access --cable, phone, wireless, satellite -- would protect Americans. And in 2002, when the five-year period of deregulation began, there was indeed rough parity in speed and price between the cable companies and telephone companies providing Internet access.
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Soon, however, cable companies found a way to upgrade their networks to provide connections perhaps 100 times faster than what was possible over copper wires, and at much lower expense than the phone companies incurred replacing their phone lines. Goodbye, Copper The American copper wire telephone system is, in fact, becoming obsolete. The physical switches used in the network are reaching the end of their useful lives. But now that cable has won the battle for wired Internet service and consumers are moving to mobile phones for voice service, the telephone companies are looking to shed the obligation to maintain their networks at all.
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Meanwhile, the U.S. is rapidly losing the global race for high-speed connectivity, as fewer than 8 percent of households have fiber service. And almost 30 percent of the country still isn’t connected to the Internet at all.
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