The NYT Compares Broadband Upgrade Costs in US, Japan 257
zxjio writes with this excerpt from a New York Times article about just how much networking infrastructure costs vary between the US and Japan: "Pretty much the fastest consumer broadband in the world is the 160-megabit-per-second service offered by J:Com, the largest cable company in Japan. Here's how much the company had to invest to upgrade its network to provide that speed: $20 per home passed. ... Verizon is spending an average of $817 per home passed to wire neighborhoods for its FiOS fiber optic network and another $716 for equipment and labor in each home that subscribes, according to Sanford C. Bernstein & Company. ... The experience in Japan suggests that the major cable systems in the United States might be able to increase the speed of their broadband service by five to 10 times right away. They might not need to charge much more for it than they do now and they would still make as much money."
Crazy (Score:5, Interesting)
I want Fios (Score:2, Interesting)
Re:High density = no digging (Score:5, Interesting)
Re:Journalism meets Technology ... (Score:5, Interesting)
What I wonder is, are companies like Cox pulling maneuvers similar to "Hollywood Accounting" [wikipedia.org] to make their end costs really high, which would appear to justify jacking everyone's rates up, but under the table they're paying themselves off (via their affiliate or otherwise owned companies) and turning an insane profit in the big picture?
anyone remember the federal universal service fee? (Score:3, Interesting)
That's something that we all get charged on our bills for the federally mandated fund that's supposed to be used to build out broadband infrastructure.
Why aren't they building out their infrastructure?
Why, instead of building upgrading to the highest speed available, are they only upgrading to the next increment?
It's the mentality of these industry giants. They spend as little as little as possible only when absolutely necessary. But they charge out the ass for it.
Comcast has the capability of providing 100Mbit service with their docsis 3.0 upgrades. Will they provide 100Mbit service? No. Because it makes more sense to charge double the normal rate for 20Mbit service.
They will probably provide 50Mbit service also. They will charge $300 for 50Mbit. Capitalism does not like innovation.
Re:I want Fios (Score:4, Interesting)
I talked to the guy stringing it up on our street last spring but I couldn't get anyone at Verizon to tell me when it would be ready to go. Once they did start marketing, the prices were unreasonable. If they made it cheaper than Comcast everyone everywhere would be onboard. Instead they're busy trying to gouge - giving Comcast time to roll out Docsys 3.0. They had a narrow window of time to beat the pants off Comcast and they missed it. Of course Comcast might have dropped prices to actually *compete*, but price competition is the LAST item on the list of things american telcos are willing to do for market share.
Re:Crazy (Score:5, Interesting)
Actually, they measure it in meters or centimeters, but your point still stands.
This makes me wonder why the speeds in the Netherlands don't go much over 20mbps, as we actually have a higher population density than Japan.
Re:Look at the Automotive Industry (Score:1, Interesting)
I add to that this: The interests of the profit takers are so deeply interwoven with those of the state that they are inseparable, with enterprise insulated from all potential harm by the slovenly government it nurses. Predictably, atrophy has resulted, and the depth of their interdependency is such that neither could possibly survive without the other. They persist now only by monopolizing the real and political capital of the nation, starving their competitors of the wealth and attention necessary for them to thrive.
With the telecommunications industry being no different, and with the infrastructure owners holding natural monopolies on the landlines and regulatory monopolies on the airwaves, there's no reason to assume that any real competition will take place here in the United States on any greater than the tiniest of scales.
Re:Missing the Point (Score:3, Interesting)
Re:Look at the Automotive Industry (Score:2, Interesting)
Great points - big business here in the US could give a rodent's behind about the consumer, othe than us being a source of income - if they can strong-arm us into paying by buying up all the competition and then raising prices, all the better for them while we get hosed. Time Warner is now going to start charging cable Internet like "cell phone" plans with tiered bandwidth. With all they charge for Internet service/cable and digital phone per household, they have to be making money hand over fist, which you would think would allow them upgrade infrastructure. Oh, I'm sorry, that cuts into profits, we can't do that....heaven forbid we should actually offer something worth what we are charging.
And in America.... (Score:3, Interesting)
This is why government mandated duopolies by the cable companies are retarded. From TFA:
Mr. Fries added another: Fear. Other cable operators, he said, are concerned that not only will prices fall, but that the super-fast service will encourage customers to watch video on the Web and drop their cable service.