A Competitive Telecom Proof

While it’s been decades since my last geometry class here is the first proof I have written since high school. After rereading this a few times it is obviously not a proof but still reminds me enough of one for me to post it. Hope you enjoy it.

1) Phone companies don’t support net neutrality
2) The argument goes, why should they have to subsidize competitors if they own the pipes?
3) The nature of the Internet will be changed worldwide as phone companies convince the US government that net neutrality is bad
4) They argue they cannot afford to build out their networks if companies like Google can ride for free and make money
5) Although they promise not to interfere with the Internet and imply they will only add a high-speed lane they charge for, most experts expect them to enforce their monopoly positions by extracting royalties from companies they compete with
6) Industry experts argue net neutrality is fair
6A) Phone companies are about making money for shareholders and not about being fair (which they are legally bound to do)
7) Recently phone companies have started to complain that cable companies will not run their ads
8) Cable companies argue that they shouldn’t run ads from their competitors
9) AT&T, filed a complaint yesterday with the FCC claiming that cable companies are trying to thwart competition.
10) The phone companies argue the cable companies aren’t fair
10A) #6A applies to cable companies as well
11) While broadband policy in the US centers around who has the best lobbyists and lawyers, other countries continue to surpass the US in broadband access because they have real broadband competition or because those countries have decided that real broadband access is a priority
12) Over 1.1 million French subscribers pay as low as €29.99 ($36) monthly for a "triple play" package called Free from Iliad that includes 81 TV channels, unlimited phone calls within France and to 14 countries, and high-speed Internet.
12A) For now France lags behind the US in broadband penetration
13) Iliad has created intense competition in France, and that has resulted in faster broadband speeds. Free offers download speeds of up to 24 megabits per second. In the U.S., the average broadband connection offered by telephone and cable companies is about 1.5 megabits per second, although a few companies offer speeds comparable with Free’s or even faster.
14) Free spends $49.08 in marketing for each new customer it adds, compared with France Telecom’s $82.32, according to market research firm Secodip
15) Some 40% of France‘s overall market for traditional fixed-line phone calls will switch to calling using VoIP this year from about 15% in 2005, according to France Telecom CEO Didier Lombard.
16) French regulators are hoping to increase the number of broadband connections in France, which currently trails many other countries. In June, 12.8% of the French were broadband subscribers, compared with 14.5% in the U.S. and 25.5% in Korea
17) With consumer triple-play pricing so low in France while the price of everything else in France is so expensive, one wonders how long it may take France to surpass the US in broadband penetration
18) France seems to have figured out how to keep the CLEC market working
18A) US policy makers have decided the CLEC experiment will never work again
19) The CLEC model is what makes broadband and triple-play serves so affordable in France
20) An upstart triple-play provider has shaken up the market the way Southwest Airlines has done in the airline business
21) The US will never be able to compete effectively without a market that ensures competition from a healthy field of new broadband upstarts

  • James G.
    March 29, 2006 at 11:20 am

    You forgot to mention that french carriers are BLOCKING voip calls — even worst than QoS.

  • Tedly
    March 30, 2006 at 8:53 am

    argh, cable companies aren’t trying to thwart competition, they’re trying to BRING it. Sometimes I wish I followed the board game industry or the sewing machine market and not telecomm.

  • Ooma Telo
    August 6, 2010 at 9:47 am

    With the Verizon-Google deal, net neutrality is back in the news. Josh Silver has called it, not quite the end of the world, but “The end of the internet as we know it.”
    So should Josh Silver’s warning be taken seriously, or is he a virtual Chicken Little?
    I think he’s overreacting. On one hand, I’m not particularly optimistic about the FCC’s commitment to internet neutrality, or their ability to exert their will on companies like Verizon and Google. On the other hand though, I am optimistic about the average American’s commitment to freedom of expression and information.
    I don’t think that our elected officials, even as cynical and corrupt as so many of them are, will allow any company to tread on those fundamental freedoms. Even if the internet changes (which, in any case it will of course do) it will remain an essentially open forum.

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