Tuesday, December 01, 2015

Telco business model -- not regulation -- curtails infrastructure investment

FCC Forbearance Vote a Welcome First Step | USTelecom: “While more remains to be done to update communications regulation to reflect the realities of today and to level the playing field among wireline, wireless and cable competitors, we applaud Chairman Wheeler for recognizing the importance of giving wireline companies greater freedom to compete, innovate and invest their capital efficiently in modern networks. We urge the full commission to adopt the reforms proposed, and to continue to eliminate antiquated requirements that distort the market, ultimately to the detriment of consumers.”
The legacy telephone company lobby oddly continues to blame regulation for chilling its investment in landline telecommunications infrastructure. The real reason is telcos simply lack a business model that can support extensive, long term capital investment. Regulation or the lack thereof doesn't fundamentally alter the equation.

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