Rural Telcom De-regulation — Prompts Competition from Space

Doug Dawson has an excellent post in Pots and Pans on the impact regulators had on the lack of rural broadband.

Rural America should never have been deregulated. Shame on every regulator in every state that voted to deregulate the big telcos in rural America. Shame on every regulator that allowed companies like Verizon palm off their rural copper to companies like Frontier – a company that cannot succeed, almost by definition.

In rural America the telcos have a physical network monopoly and the regulators should have found ways to support rural copper rather than letting the telcos walk away from it. We know this can be done by looking at the different approaches taken by the smaller independent telephone companies. These small companies took care of their copper and most have now taken the next step to upgrade to fiber to be ready for the next century.

The full post is HERE.

Doug writes: “The big telcos started abandoning rural America as much as thirty years ago. They’ve stopped maintaining copper and have not voluntarily made any investments in rural America for a long time. There was a burst of rural construction recently when the FCC gave them $11 billion to improve rural broadband to 10/1 Mbps – but that doesn’t seem to be drawing many rural subscribers.”

The launch of the low earth-orbiting satellite broadband networks by SpaceX, OneWeb, and Amazon are going to provide rural users alternatives to the poor service and slow speeds offered by the telcos. The LEO ISPs are promising “fiber-like services” to rural customers starting in 2020, with full service by 2021.

One of the challenges will be the start-up costs, which are forecast to be in the $300 to 500 dollar range. The monthly fee of those services is presently an unknown but is expected to be competitive with existing fiber services.

SpaceX is expecting a high demand for their “fiber-like services” from space. They have requested permission to launch up to 42,000 Starlink satellites, 12,000 that are already approved plus 30,000 more to meet the expected global demand. This YouTube video has some details and attractive graphics:

https://youtu.be/z93a9OUJfOA

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