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The New Front in the Muni-Broadband Wars
If you’re one of the 10,000 people who are lucky enough to be able to buy services from the UTOPIA network, you might pick MStar’s 15Mb/s (symmetric) service for $39. Or you might just take a cut in your Qwest DSL or Comcast cable bill. Seems that the newest tactic of the incumbents is to lower prices—but only in UTOPIA service areas:
Comcast Corp. (Nasdaq: CMCSA, CMCSK) and Qwest Communications International Inc. (NYSE: Q - message board) are distributing marketing materials advertising lowered prices, but the fine print stipulates they apply only to cities where UTOPIA service is available, says Ben Gould of DynamicCity.
Perhaps this is an indication of the future path of warfare between commercial incumbents and municipal broadband networks. Thus far, the incumbents have attempted to block UTOPIA’s progress through legal and legislative means, and those tactics are still being used. Qwest filed suit some months ago against UTOPIA and one of its member cities, and both Qwest and Comcast have worked to influence anti-muni broadband legislation in the state legislature. (See Cannon Fires at Incumbents.)From Light Reading - Networking the Telecom Industry
Referenced Fri Sep 23 2005 08:35:14 GMT-0600 (MDT)
Qwest and Comcast are hoping they can dull the shine of muni-broadband before it gets a toe-hold by holding on to subscribers and cutting into muni-broadband profits. They’re banking that consumers will just see “broadband” without really understanding the difference between connection speeds, symmetric vs. asymmetric connections, etc.
Meanwhile, iProvo’s provider woes seem to have created enough FUD that subscribers are shying away—at least for now—and hurting it’s revenue picture.
Posted by windley on September 23, 2005 08:35 AM
