It all probably started innocently enough. Now it is getting in the way of the competitive marketplace.
Cable television companies like Comcast, Time Warner and Cox have rolled out high speed Internet service to customers as one of their services. They come at this from the perspective that it is one of their services and they should make decisions how it should be developed and marketed. They think that they should be able to use this as a way to build their cable TV business.
This frame of reference is similar to AT&T Wi-Fi services. They make this service available in Starbucks, Barnes & Noble, McDonalds and thousands of locations across the USA. The do this to build the AT&T brand. They do this to make it easier for customers to choose AT&T over a competitor.
There is valid reason behind this and thousands of other similar moves by other companies.
However high speed Internet from cable television is now under the radar of the US Government. Is this cable television view of this service the right view?
The US Government has to make a fundamental decision as to how to classify high speed Internet.
Either it is a necessary generic highway that enables and encourages growth from other companies and technologies and improves the industry.
Or it is strictly a company owned and company controlled service that is used for competitive reasons.
I think the answer is simple, today anyway.
Since customers find a very limited number of places to get high speed Internet, and this is such an important service to both customers and the marketplace, the decision will be that this is a needed national resource to encourage other companies, technologies, growth and innovation.
If that is the case then high speed Internet access will have to be thought of as a completely separate service that customers can buy without having to buy anything else from the company. And they can use this to access competing services like telephone and television and movies over the net.
Cable television will not like this and will push back, hard, but this is the only path that makes sense right now. If we get to a point where Internet access is available from a wide variety of places then that could change.
Today we only have high speed access from the local telephone company and the local cable television company. Customers can buy access through their wireless company as well, but that is not as fast and cannot serve as many devices.
Wireless Internet access actually makes so much sense. Imagine having a device in your house, that communicates with the nearest wireless tower, and you can connect all your devices to. Sounds perfect. Oh, no, wait, the spectrum shortage. That’s right. We can’t do that because wireless carriers are choking with usage from all the Apps on our wireless phones and tablet computers.
So we are stuck for now anyway. High speed Internet can be profitable, but cannot be used to give the cable companies a competitive advantage. Not yet. Not until there are more choices.
* * * * * * * * * * * * *
These comments may be quoted in news stories. They are being sent by email list and on the web.
Please attribute to Jeff Kagan, Tech Industry Analyst with www.jeffKAGAN.com
If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com
To be added or removed from this list, please send me an email with request.
* * * * * * * * * * * * *
Jeff KAGAN| Tech Industry Analystwww.jeffKAGAN.com
Analyst sharing perspective on the changing industry for 25 years
~ Also Columnist, Author, Consultant, Speaker
~ Column http://www.ectnews.com/perl/section/jeff_kagan/
Phone 770-579-5810 Email jeff@jeffKAGAN.com
Other press releases from Jeff KAGAN Tech Industry Analyst, Columnist and Author
- Apple iPhone Sales Weaker Than Expected | Jeff Kagan Industry Analyst - January 14th, 2013
- Will FACEBOOK Launch Phone This Week? | Jeff Kagan Industry Analyst - January 13th, 2013
- Nokia Not Out of Woods Yet | Jeff Kagan Wireless Analyst - January 10th, 2013
- Why Microsoft Windows 8 Holiday Sales Were Soft, Jeff Kagan Tech Analyst - January 5th, 2013
- Sprint Nextel Acquiring Clearwire for Wireless Data | Jeff Kagan Industry Analyst - December 17th, 2012
Contact InformationJeff KAGAN
Title: Tech Industry Analyst ~ Columnist ~ Wireless Analyst ~ Telecom Industry Analyst
Jeff KAGAN Tech Industry Analyst, Columnist and Author
PO Box 670562
Marietta, GA 30066
Phone: 770 579 5810