Broadband deployment numbers will fall. Why? The FCC has re-defined broadband as 4MB x 1MB and most DSL and 2.5G/3G do not provide that kind of real bandwidth. In the FCC report titled "Internet Access Services: Status as of December 31, 2009," 68% of connections in the US advertised as "broadband" can't really be considered as such because they fall below the agency's most recent minimum requirements." Oops!
TechSpot notes that 'over 90 million people in the country are using a substandard broadband service. To make matters worse, 58 percent of connections don't even reach downstream speeds above 3Mbps." BTW, cable leads the way with 70% of the high-speed bandwidth market (over 3MB). TechSpot goes on to state that this report reflects what consumer Purchased, not what was available. Much of that has to do with bundled packages and pricing, not just availability.
When you consider that faster speeds mean more usage - in other words, if I am buying faster bandwidth, I am going to use it - the Duopoly doesn't want to become a dumb pipe. Check out these bundles: triple play is $100; TV+Internet is $95; and TV+Phone is $85. I can't even find an Internet only plan. The Duopoly has a minimum spend per household -- and they don't care how you spend it.
That doesn't bode well for cord cutters or economically distressed households because there will be a minimum spend.
It used to be that the marketing message for the upgrade from dial-up to DSL was so you could do it faster (save time). Now that message is gone, because the amount of time consumers spend online is increasing. That results in more bandwidth usage - especially is video is growing. That means that network operators - the Duopoly - has to keep upgrading the network to meet demand. Or not. And just say Too Bad! It's better than the other provoider. What are you gonna do? Build your own? If you do, we will sue you and delay if for a couple of years. You consumers are pests. Just give us our money. Oh, and here comes another rate hike. HA! The C-suite wants a raise.
