IP: BROADBAND HAVE-NOTS FACE LIFE WITHOUT E-BUSINESS: Edupage, December 29, 2000

[Dave Farber <farber () cis upenn edu>]

> 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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