Tuesday, November 20, 2012
Will the U.S. Cable Industry Someday Have a Broadband Monopoly?
Is the market for high-speed broadband Internet destined to become a "new monopoly?" The question might seem silly to many observers who compete in the market.
Some simply point to the consistent strength of cable provided broadband in the net new customers area as evidence cable is winning the broadband access market share battle
It is hard to refute that notion, as consistent declines for telco-provided digital subscriber line services, despite gains by fiber-reinforced services provided by telcos, are a clear trend.
So U.S. cable operators are gaining share in the fixed network access market. Also, recent marketing agreements between Verizon and top U.S. cable operators give the impression that cable has abandoned any serious effort to build its own facilities-based mobile business, while Verizon likewise has decided that, where it cannot provider FiOS, it will rely on mobile broadband.
But that's only part of the story.
Mobile broadband is beginning to represent a bigger share of total broadband access, as well.
The number of active mobile broadband subscriptions reached nearly 1.2 billion by mid-2011, representing a 45 percent increase annually since 2007, with total mobile subscriptions topping five billion By the end of 2010, there were over twice as many mobile broadband as wireline broadband subscriptions, for example.
Over the longer term, fixed broadband access share might not matter as much, overall.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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