Are Multiple Broadband Infrastructures
Sustainable?
Is Monopoly or Competition the Future of Broadband?
At the beginning of
the 20th century, the narrowband telecommunications sector
(also
known as the telephone business) suffered a classic “boom and bust.” As
soon as
the original telephone patents expired, the business boomed: competing
telephone
systems were rapidly deployed, telephone service spread rapidly to
previously unserved areas, technological
improvements rapidly changed
the cost and capability of telephone service and telephone rates,
particularly
in competitive markets, fell quickly. Almost
as quickly, the “boom” turned into a “bust” followed by the rapid
consolidation
of the industry into the Bell System and hundreds of local
“independent” telephone
monopolies. Regulation was then imposed
on these essential monopolies.
At the beginning of
the 21st century, could history repeat itself?
Could intense competition in some markets between
multiple broadband networks, each with high fixed costs and low
incremental
costs, lead to the survival of the fittest? Since there is concern that
other,
usually rural, markets may never have broadband service unless they are
subsidized, is it realistic to expect that such markets can sustain multiple
commercial systems? If municipal
governments deploy broadband systems, will they discourage commercial
systems?
Is it likely that
broadband infrastructure networks will consolidate, at least in some
geographic
markets, to such a degree that government will feel compelled to impose
“pervasive regulation”? Or will new applications create more than
enough demand
and revenue to sustain multiple, competing, low cost, unregulated
broadband infrastructures?
Instead of competition, could a comfortable duopoly emerge? These are
crucial
issues for regulators, legislators, investors, content providers and
network
operators.
Conference speakers
will include representatives of companies offering broadband systems,
policymakers and investors. CITI’s website
http://www.citi.columbia.edu will have the latest details and registration
information.
Registration
Please register
online at http://www.ersvp.com/reply/event12421. Corporate attendees: $75.
Academics, government
officials, and non-profit attendees, $25. Students
may attend for free without lunch,
or for $25 with lunch. CITI
Affiliates: please contact Ben
Bloom at 212-854-4222 for special registration arrangements