Some truth about Comcast - WikiLeaks style

Jeremy Bresley brez at brezworks.com
Mon Dec 20 19:52:11 UTC 2010


On 12/20/2010 1:30 PM, Owen DeLong wrote:
> On Dec 20, 2010, at 11:16 AM, Leo Bicknell wrote:
>> And yet, I don't know of any location in the US with two cable
>> operators.  You see, these rules weren't changed to provide for a
>> second cable TV plant to be put in the ground, even in the FCC knew
>> that cost too much.  Rather, if  you read carefully the problem was
>> that Verizon, AT&T, and Bell South (all mentioned by name in the
>> article) wanted to deliver video over FIOS/DSL.  Most areas had
>> coverage rules, to be a cable provider you had to pass 95%+ of the
>> houses or such, and these folks didn't meet many of the local rules
>> and went to the government for help.
>>
> I think that I recall encountering one or two such places in the past,
> but, I cannot recall them to make a specific citation. Certainly it is the
> exception and not the rule.
>
> Owen
>

Cedar Rapids, IA is served by both Mediacom (incumbent/original cable 
company) and Imon (spinoff from McLeodUSA where they used to be called 
McLeodUSA ATS).  As well as having Qwest for telco service.

ATS started as an overbuild to compete at the local level in MCLD's 
hometown.  They were started circa 1997, and are still in business 
today, so they survived the last 2 bubbles.  And they caused Mediacom to 
keep prices down, and compete to offer additional services in Cedar 
Rapids long before they were available in other cities in their footprint.

So examples of competitive overbuilds being successful do exist.  Maybe 
Google's fiber build will inspire some other companies to try to compete 
in this fashion.

Full disclosure: I worked for MCLD from 98-05, and in the ATS division 
from 00-05.

Jeremy




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