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A Model For A Competitive Broadband Market – Broadband Inches Toward Utility Status

I believe the telecommunications market needs to move away from vertical integration where one provider builds, manages, and delivers the entire telecommunications stack to the market. We need to move to a layered model much like the software industry has adopted and which results in a highly competitive market at each layer.

We tried this in the 1990s with the Telecommunications Act of 1996 which provided that incumbent carriers were required to offer new entrants access to their networks. For many reasons, that didn’t work out and tens of billions (maybe hundreds) were incinerated when the CLECs (the new entrants) were stymied by the incumbent carriers and failed to build sustainable businesses. That massive failure has weighed over the broadband market for the past 15 years as most investors moved onto more fertile areas of investing in the TMT (telecom, media, technology) sector.

By Fred Wilson

Full Story: http://avc.com/2015/09/a-model-for-a-competitive-broadband-market/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+AVc+%28A+VC%29

Many thanks to Lance Trebesch of http://www.ticketprinting.com for sharing

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Broadband Inches Toward Utility Status http://www.matr.net/article-67936.html

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