Cable giants like Time Warner, Comcast, and others make insane amounts of money on the services they provide. Believe or not, the price is not the worst thing about this whole situation. Since they are making so much money on the slower speeds, there is no real incentive to rebuild their networks to support higher speeds. Once they realized people would pay top dollar for “bottom of the barrel” internet connection speeds, they didn’t have to do anything else.
Verizon was the only company to start laying the foundation for Fiber networks, but they quickly stopped the project after deciding to focus on increasing capital before expanding their network. “At this point we have to capitalize on what we have invested” was the statement by Verizon CFO Fran Shammo.
Google Fiber, Gig.U, Gigabit Squared and some other city and county projects to expand Fiber networks are being attempted in a few locations around the country. Google Fiber has started installing Fiber lines in Kansas City, and plans to finish on both sides of the state line. They have stated that it is not a hobby, it’s a valid business move for them and they plan to expand. Gig.U is a broad-based group of 30 leading research universities from all around the US that seek to accelerate the deployment of Fiber. Gigabit Squared, another project to expand fiber in cities, has raised over 200 million for fiber projects across the US. They have cities such as Chicago, Seattle, and others on board. Teamed with Gig.U, they will be bringing Gigabit internet to almost 5000 homes, businesses, schools, libraries, and healthcare institutions. They eventually hope to spread to 79,000 households and 210,000 businesses just in Chicago.
These projects are the only things preventing the cable companies from having complete control over our connections and our wallets. When Google Fiber launched in Kansas, Time Warner suddenly lowered their rates and raised their speeds, not nearly to the levels of Google’s, but simply as a panic reaction. That’s the reaction we hope to see more of in the future. Prices reducing to reasonable rates, and speeds that reflect those prices.
These are some of the leading locations that have currently deployed Fiber Networks:
1. Kansas City, MS / MO
2. Chattanooga, TN
3. Lafayette, LA
4. East Lansing, MI
5. Bristol, VA / TN
6. Morristown, TN
7. Burlington, VT
8. Seattle, WA (Coming Soon)
9. Chicago, IL (Coming Soon)