Why Did Telcos Lose the Broadband Market to Cablecos?

A binder of jam-packed pairs of copper home wires that create considerable noise interference.

How have copperwire-bound telcos allowed themselves to fall so far behind cablecos in broadband speeds?

Cablecos were very, very open about their plans for rolling out and upgrading their DOCSIS fiber/coax broadband technology.

Most if not all cablecos are now offering speeds of 100 Mbps and faster and are actively upgrading their networks to 500 Mbps and higher. Their goal is to use DOCSIS and/or all-fiber networks to offer 1 Gbps and greater in the near future. Copperwire-bound telcos are struggling to get to 100 Mbps.

Some are counting of G.Fast over copperwires to provide speeds up to 300 Mbps in the future.

Perhaps the telcos were focused on offering a pay TV service, a business that is at best not losing subscribers.

They should have been focused on broadband, a business that they originated but, with a few exceptions such as Verizon in 70% of its footprint, never upgraded the broadband technology to enable speeds that consumers want.

Rider Research reported both the then and the current upcoming consumer demand for faster broadband speeds and cablecos’ plans to meet that demand many, many times since April, 2005, 11 years ago such as in this article here (see article “Are Telcos Fighting the Last War?”) In addition to the spread of smart TVs, smartphones and tablets, we also predicted 4K’s impact on bandwidth and are currently reporting on how live-streaming, HDR and virtual reality will cause the demand for consumer bandwidth to increase …

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