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IP: BROADBAND HAVE-NOTS FACE LIFE WITHOUT E-BUSINESS: Edupage, December 29, 2000
From: Dave Farber <farber () cis upenn edu>
Date: Fri, 29 Dec 2000 18:40:37 -0500
The digital divide in broadband access exists not only for consumers but for companies that need high-speed Internet access to leverage e-business. Broadband providers typically focus on the most profitable markets, because extending service to new areas is expensive. As a result, providers often pass over densely populated urban areas and rural regions with rough terrain because of the difficulty of deploying fiber in these areas. In addition, asymmetric DSL customers must live within three miles of the provider's central office switch. Many firms located in areas where broadband is not available are losing customers and revenue as business increasingly moves online. Providers that fail to deliver broadband to businesses are likely to lose these profitable customers to rival providers. Regional data competitive local service providers and new providers targeting niche markets are currently providing most of the broadband service in rural and suburban areas. However, larger players are also showing signs of trying to extend broadband to more areas. For example, SBC Communications in September bought a 6 percent stake in Covad, in a move that allows SBC to resell Covad's DSL service. (tele.com, 27 December 2000)
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- IP: BROADBAND HAVE-NOTS FACE LIFE WITHOUT E-BUSINESS: Edupage, December 29, 2000 Dave Farber (Dec 29)