Uncommon Wisdom

Feb 17 2010   5:37PM GMT

FCC chair pushes 100 Mbps Internet expansion, stays mum on major concerns

Tom Nolle Tom Nolle Profile: Tom Nolle

Federal Communications Commission (FCC) Chairman Julius Genachowski this week jumped out to praise the notion of expanding 100 Mbps Internet to 100% of U.S. homes. We think that goal makes a lot of political and PR points, but fails to address any of the critical issues that have been fomenting discord among operators. The 100 Mbps technology is clearly beyond the point where existing copper could be leveraged, and our models and others all suggest that no more than about 40% of U.S. homes could be covered by Fiber to the Home, even with optimized cost management. Pass costs for rural customers can easily reach $10,000 per user.

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