Railroads and fiber: Part II: The Incumbents

Submitted by acohill on Mon, 07/27/2015 - 08:58

As I continue to read "A Great and Shining Road" about the building of the transcontinental railroad in the 1860s, I continue to be amazed at the number of parallels between that project and the effort to get fiber to homes and businesses today.

While the scale of the two projects is different (the railroad was going to span the continent, while fiber needs to be built within towns and cities), the *resistance* to the project is the same.

Some of the fiercest opposition to the proposed transcontinental railroad came from the incumbent railroads, who saw competition as a bad thing. The incumbents got newspapers to print mis-leading articles and they wined and dined legislators and told them there was no need for another railroad. One railroad magnate even grandly pronounced that there was no need for a transcontinental railroad because hardly anyone traveled between the East Coast and the West Coast.

Of course, there were few travelers because there was no easy way to get across the country--sailing around the tip of South America or traversing the Isthmus of Panama (death from yellow fever was common), or braving Indian attach going cross country were the only three options. Today, we have incumbent telecom providers saying the same thing: "No needs a Gig of bandwidth because no one is using a Gig of bandwidth."

Well, you can't use it if you don't have it.

Here we are, more than 150 years later, repeating history, fighting the naysayers and entrenching interests.

Of course, we know how things turned out for the "crazy" concept of a transcontinental railroad: it transformed the nation and unleashed decades of economic growth across the entire country.