Setting the Record Straight on Broadband

New Post Public Reply Private Reply Replies (0) Message Board
Hightech

Setting the Record Straight on Broadband Investment

03.14.2014

Some people will never be happy. This is the reaction that comes to mind as I read David Cay Johnston’s Newsweek Online article , “Telecom Giants Drag Their Feet on Broadband for the Whole Country.” Johnston inexplicably portrays America’s broadband industry as revanchist profiteers out to nickel and dime consumers. Yet, by any objective reading, broadband providers are spending extraordinarily large sums of money to deploy modern networks — and consumers have benefited enormously, with more choice and technological innovation than they could have imagined even a decade or two ago.

Let’s begin with the article’s unsubstantiated claim that broadband providers hoodwinked the citizenry and the government into believing there was some earmarked “project” to wire every corner of the country, charge for it, and then pocket the cash. The facts are that broadband providers, including wireline telecom, wireless telecom, and cable, are investing nearly $70 billion annually in capital expenditures , predominantly to build out advanced networks. Wireline broadband providers account for more than one-third of that. Since 1996, the broadband industry has invested more $1.3 trillion dollars in capital expenditures, with wireline telecom providers accounting for at least half. A recent report on U.S. “Investment Heroes” ranks AT&T and Verizon the top two investing companies in the country. According to this report, other than the energy sector, telecom makes more capital expenditures than any other sector, and three times as much as the technology sector. While the broadband sector continued to invest more than $60 billion per year in the depths of the recession, many other sectors were retaining cash .

Second, let’s address the article’s claim that vast swaths of the country have “little or no service” and that telcos have wired only “high-density big cities.” Looking at the very national broadband map Johnston cites, we can see that more than 99 percent of the population has broadband available over any wireless or wired technology and 95 percent can get wired broadband. Moreover, in just a few short years, substantially higher speeds have become more widely available. Wired broadband at 10 megabits download or greater is now available to 92 percent of the population, up from 85 percent in 2010; wired broadband at 50 megabits download or greater is available to more than 80 percent of the population, up from 46 percent in 2010; and wired broadband at 100 megabits download or greater is now available to 57 percent of the population, up from 11 percent in 2010.

In addition, new technologies have gained ground in recent years. Fiber-to-the-home is available to 25 percent of the population today, compared to less than 15 percent in 2010. This figure does not include projects that push fiber closer to the home, such as AT&T’s U-verse, which has recently announced upgrades to 45 megabit speeds over hybrid fiber-copper networks for about three-quarters of its roughly 30-million-home footprint. AT&T plans to upgrade U-verse to 100 megabit speeds in the future. Carriers are beginning to roll out gigabit fiber services to consumers. Finally, mobile wireless broadband at 10 megabits download or greater is now available to 95 percent of the population today, compared to just 8 percent in 2010.

As for the claim that only big cities have been wired, approximately 20 percent of households in the United States are rural. If 95 percent have wired broadband from telecom or cable operator, at least three-quarters of rural households can get wired broadband, not to mention that nearly all households can get wireless broadband at 10 megabits download. As the FCC’s national broadband plan states — not just an industry claim, but a government analysis — it is uneconomic to deploy broadband to some high-cost areas. Of course, it is important to connect all Americans with broadband. That is why USTelecom has supported FCC efforts to reform its universal service programs to include support for broadband.

Also inexplicable is Johnston’s nostalgia for the networks of the 19 th century. Sure, they didn’t depend on the electrical grid. That is because they were copper from end to end. If you want the kinds of usage and convenience that modern networks demand, you need more fiber and more wireless technology in your networks. These require separate power. Just as important, the copper network of the 19 th century, even when upgraded with late 20 th century digital switching technology, could only provide dial-up Internet access at 56 kilobits per second. Surely we want more than that, which requires trade-offs — and unlike on the traditional network, end user capacity demands are constantly growing.

Maintaining increasingly underutilized legacy networks diverts resources from modern networks needed to accommodate the critical demands of the modern information economy. Certainly industry does not want to cut off consumers from services like 911, home security, and health monitoring. But isn’t it better to find ways to deliver those services more efficiently over modern networks that to maintain duplicative networks indefinitely?

- See more at: http://www.ustelecom.org/blog/setting-record-...jgMcd.dpuf

Digital Uts Ventures (DUTV) Stock Research Links

DUTV Board Company Profile Buy Rating Time & Sales News Filings Financials
"The only way of discovering the limits of the possible is to venture a little way past them into the impossible."
Scroll down for more posts ▼

Top 10 Most Recent News Articles

Art and Science Blend in Dr. De La Cruz's Approach

Updated Category News Views 2

Redefining Aesthetic Surgery: An Artistic Approach The world of plastic surgery is often seen through the lens of beauty and symmetry, but for Dr. Emmanuel De La Cruz, it's like staring into a whole different universe. This Houston-based plastic surgeon isn't just removing fat—he's reshaping the human canvas with the eye of a sculptor. Beyond the Standard Cut and Snip...

Continue Reading
Greenberg Traurig Shines in 2026 Palm Beach Attorney List

Updated Category News Views 1

Legal Eagles Soar in the Sunshine State Right out of the gate, it looks like Greenberg Traurig's West Palm Beach office is getting all the spotlight. Twenty-one of their legal hotshots have clinched spots on Palm Beach Illustrated's 2026 'Top Lawyers' list. For those keeping score, that's a hefty nod in this competitive market. A Closer Look at the Selection Process Now,...

Continue Reading
Beyoncé Drops Remastered 'B'DAY'; Celebrates Legacy

Updated Category News Views 3

Every so often, an artist comes around who's not just making music but shifting the very landscape of their genre. Beyoncé isn't just marking her birthday today; she's reminding the world of a career-defining moment with the release of her remastered deluxe version of 'B'DAY'. This isn't just a stroll down memory lane; it's a full-blown revival of an era that reshaped...

Continue Reading
LaserPecker Debuts U1: Innovations in UV Laser Engraving

Updated Category News Views 1

An Eye on the Future with LaserPecker's U1 This ain't your typical innovation announcement. LaserPecker is shifting the sands with their latest release, the U1, at IFA 2026 in Berlin. For anyone sick of struggling with transparent materials like glass and crystal, this thing promises to be a game-changer, boasting cutting-edge technology in UV laser engraving. While...

Continue Reading
Argo Biopharma's BW-20805 Shows Promise in HAE Phase II Trial

Updated Category News Views 1

Argo's Gains in Hereditary Angioedema Therapy Think about it, folks – reducing a hereditary angioedema attack by over 80%? Argo Biopharma, the slick operator in the RNA therapeutics space, is flexing its muscles again. They've hauled in some impressive data for their siRNA therapeutic, BW-20805, at the 2026 Bradykinin Symposium in Berlin. For you deep-pocketed investors...

Continue Reading
October 15 Marks Prologis Q3 2026 Results Call

Updated Category News Views 2

Prologis Steps Up to the Plate This October If you’ve got a finger in any logistic pies, make sure it's wrapped around the latest from Prologis come October 15. The logistics behemoth is rolling out the red carpet for its third quarter results, with all eyes on what their senior management will spill. Frankly, you don’t just show up to these things to sip coffee and...

Continue Reading
PROCEPT Faces Legal Storm Over Sales Practices Missteps

Updated Category News Views 1

Investors Take Aim: A Legal Showdown on the Horizon There's a brewing storm over at PROCEPT BioRobotics—ticker NASDAQ:PRCT if you're tracking. These folks are knee-deep in a securities class action lawsuit from investors who’ve taken a financial wallop. The lawsuits are triggered by allegations of shady sales techniques that artificially bumped up their unit sales...

Continue Reading
AI: Game-Changer for IT Budgets & Productivity Gains

Updated Category News Views 0

AI's Potential to Transform IT Operations You ever feel like IT departments are just stuck on repeat, burning through cash and time just to keep the lights on? It's a common gripe, and Info-Tech Research Group's latest blueprint drives this home, highlighting that routine IT chores eat up a staggering 83% of budgets and 66% of staff's ticking hourglass. Now, who wouldn't...

Continue Reading
Solomon e3 Halves Cloud Costs with NexQloud Shift

Updated Category News Views 1

Ever feel like you're drowning in an unnecessary cloud bill? Well, Solomon e3 did something about it. They chopped over half of their cloud spending after partnering with NexQloud. This isn't just an old-school belt-tightening; it's a full-on digital revamp after a deep-dive into their IT finances. Saving Pennies and Dollars with Smart Moves You'd think an energy company...

Continue Reading
University of Phoenix Boosts Networking Strategies

Updated Category News Views 1

Building Networks: A Key to Professional Growth Listen up, because everyone and their dog is gabbing about mentorship and networking these days—and for good reason. The University of Phoenix is cracking this nut open with their latest webinar, "Build the Network That Advances Your Career: Mentors, Peers & Community," happening on September 17th. They're not just...

Continue Reading

Top 5 Most Recently Viewed Articles

Ionis Pharmaceuticals: Financial Success in 2024 Highlights

Updated Category News Views 77

Ionis Pharmaceuticals Reports Impressive Q3 2024 Financial Results Ionis Pharmaceuticals, Inc. (NASDAQ: IONS) has made remarkable strides in its financial performance for the third quarter of 2024. The company is steadily navigating towards its growth targets with significant advancements in its innovative medicines portfolio. WAINUA Launch and Other Milestones Ionis has...

Continue Reading
Maximize Your Crypto Returns with FioBit Cloud Mining Today

Updated Category News Views 281

Understanding Cloud Mining and Its Benefits In the rapidly evolving world of cryptocurrency, many investors are seeking ways to maximize their returns without facing the steep learning curves typically associated with mining. Enter FioBit, a cloud mining platform designed to simplify the mining process while providing impressive returns. Unlike traditional mining methods...

Continue Reading
Unlocking the Potential of Legal Data with AI Innovations

Updated Category News Views 219

Revolutionizing Legal Data Management In an era where data drives decision-making, Robin AI has introduced a transformative generative AI tool that revolutionizes how legal teams handle contracts. This innovative solution turns typical contracts into a treasure trove of structured data, making it immensely easier for companies to manage and utilize legal information....

Continue Reading
How AI Enhances Smart Wireless Propane Tank Meter Growth

Updated Category News Views 163

Smart Wireless Propane Tank Meter Market Overview The market for smart wireless propane tank meters is set for significant growth, primarily fueled by advances in artificial intelligence (AI) and Internet of Things (IoT) technologies. Industry forecasts suggest the market size will increase by USD 13.72 K between 2024 and 2028. With an anticipated compound annual growth...

Continue Reading
Topicus.com Expands its Footprint with New Share Acquisition

Updated Category News Views 354

Strategic Acquisition by Topicus.com Inc. In an exciting development within the software industry, Topicus.com Inc. has successfully completed the acquisition of 14.84% of treasury shares in Asseco Poland S.A. After a thorough review and securing all necessary regulatory approvals, this strategic move positions Topicus as a significant stakeholder in Asseco, a leading...

Continue Reading