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Will the NBP Force Bankruptcies for Rural Last Mile Providers?

Although that sounds like an alarmist title, several people who work for rural operators expressed the concern that if the National Broadband Plan continues in its current direction, we may see bankruptcies of some rural telcos as early as 2012. These people also indicated that there will be significant lay-offs and continued consolidation among smaller carriers based on the current direction. It will be devastating for the rural communities served by these rural last mile providers. The irony is that it if this comes to pass the roll out of broadband may slow, at least in some rural areas, which is counter to the aim of the NBP.

We captured video interviews with many folks at the IP Possibilities Conference and heard their opinions on the NBP, which Roger put together in this excellent summary video, shown above.  Note, this video really could be split into two parts, as the first part deals with the NBP, while the second part discusses various ways to enhance the value of the broadband pipe.

2 responses to “Will the NBP Force Bankruptcies for Rural Last Mile Providers?”

  1. […] Will the NBP Force Bankruptcies for Rural Last Mile Providers? […]

  2. Emmett Smith Avatar

    There are different possible trains of thought available for boarding.
    The first one is that, in typical fashion,  the new administration put people in charge of the FCC as a reward for having helped it get elected and not based on their capabilities. This happens so often that it's amazing that the federal government runs at all. In this case, the new FCC chief, pulled 100 Megs out of some deep dark secret place in his persona that only he fears to tread. The announcement alone caused ILECS to stop investing in their networks placing a number of equipment manufacturers in jeopardy. Some guys go nuts when they experience a broadband bottle neck during a porn movie. Bandwidth is not the only possible solution to your viewing pleasure. Data compression can also be a solution.
    The second train leaving the station says that the government has morphed into an entity that is more interested in controlling the country than in the country's success. Widespread, unchecked and inexpensive sharing of information, along with the rest of our freedom,  is viewed as a threat by this monster instead of as a benefactor to the country's success just as the national telecommunications backbone became when it was established. Transportation, education, and communication made this country great. If a desire to control places the ILECs in jeopardy, we will all suffer.
    Rural ILECs consider providing the latest, greatest, and fastest to their subscribers to be a personal challenge and they often upgrade as soon as they can figure out how to survive the upgrade when it makes no financial sense at all. The best way to kill this ambition and initiative is to start telling them that they have to do it.
    Having taken advantage of Verizon's offer for an for an upgrade to 3 Meg for an additional $15 per month , I am now watching movies, TV shows, sporting events, the NEWS, and talking nationally using IP without any bottle necks. I can't imagine needing more. I never watch TV any more and will be saving money when I cancel cable. Haven't tried the porn, though. Maybe that's where a guy needs 100Meg, but my thought, based on my past experience,  is that the only thing that the government will do  is take some of what I already have away.

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