Are broadband investments peaking?

Submitted by acohill on Thu, 01/21/2010 - 10:19

A story in the Financial Times (registration may be required) suggests investments in broadband are peaking. The article is a little misleading, because it suggests that this is a sign of "maturation." Maybe. Maybe not.

Broadband investments are peaking because cable and telephone companies have spent a lot over the past decade upgrading their antiquated copper-based infrastructure, and in their view, there is not a lot left to do. Yes, fiber to the home deployments continue to grow, but large parts of the U.S. have been redlined by the incumbents as "too expensive" for fiber. So most of this investment has been focused on what the FCC calls "little broadband," not "big broadband." Big broadband requires fiber.

Small and medium-sized businesses stuck on DSL are already calling it "tomorrow's dial up" (an exact quote from an angry business person in West Virginia). To attract jobs and businesses, communities will have to make basic broadband infrastructure investments in "big broadband."