Article: One big reason we lack Internet competition: Starting an ISP is really hard
Millions of Americans would gladly switch from their DSL or cable Internet service to fiber, which in many cities delivers speeds of 1Gbps. That's 250 times faster than the 4Mbps download bandwidth that qualifies as "broadband" under the Federal Communications Commission definition. As of Dec. 2012, 29 percent of US households lived in census tracts with one or zero providers offering fixed Internet service of at least 6Mbps, according to FCC data. While the other 71 percent of census tracts had at least two providers offering 6Mbps, they may not offer that speed to all households in each area, the FCC said. Cable and DSL dominate nationally, with fiber-to-the-premises accounting for only 6.7 million out of 92.6 million fixed connections of at least 200Kbps.
Seems like a huge market opportunity, right? But actually starting a new Internet service is no simple task.
A new fiber provider needs a slew of government permits and construction crews to bring fiber to homes and businesses. It needs to buy Internet capacity from transit providers to connect customers to the rest of the Internet. It probably needs investors who are willing to wait years for a profit because the up-front capital costs are huge. If the new entrant can't take a sizable chunk of customers away from the area's incumbent Internet provider, it may never recover the initial costs. And if the newcomer is a real threat to the incumbent, it might need an army of lawyers to fend off frivolous lawsuits designed to put it out of business.
So much for competition. This is why it's hard for up and coming companies to get their feet wet in becoming competition for big-name ISPs like Comcast, Verizon, AT&T. Once they try to enter the marketplace, they face lawsuits for all sorts of foolish crap, face high startup costs, and then trying to have a good competitive price. And as I mentioned before, Google can't even enter the marketplace and they are a huge company. I was excited when I first found out about Google Fiber so I can tell Comcast to kick rocks, but ISPs like them have done a good job of keeping that from being a reality.
This situation isn't like opening a sandwich shop next to a Subway because Subway wouldn't sue you just because you entered their territory. But this is one of the setbacks companies face with ISPs.
Here is more in the article:
That's what happened to fiber ISP Falcon Broadband in Colorado Springs. The company started in 2003, competing against Adelphia, Falcon's former engineering chief Michael Wagner said.
"They did not want anybody else to come into their territory because they wanted to have that monopoly with their franchise agreements," Wagner told Ars. "What they started to do was file frivolous lawsuit after lawsuit to try to basically bankrupt us so we couldn't compete."
Wagner recalled about 10 lawsuits from Adephia, and later Comcast, who took over Adelphia's operations in 2006.
"We've had lawsuits that we were tampering with their equipment; we had lawsuits that we were violating different FCC requirements for the cable plants," he said. "We had lawsuits that we were not honoring different content contractual obligations and that we were doing unfair practices, basically, in the franchising cable agreements."
Most of the suits "were either thrown out right away, or they didn't pursue it. It was mostly just to make us spend $400 dollars an hour on lawyers," Wagner said. The legal crusade lasted several years and finally tapered off after Comcast acquired Adelphia's assets, he said.
Source: https://arstechnica.com/information-technology/2014/04/one-big-reason-we-lack-internet-competition-starting-an-isp-is-really-hard/
Competition leads to innovation. With no competition, we have exactly what we're going through now and that's stagnation. Why in this day and age there are areas in our country (supposedly a developed one) where people do not even have access to broadband speeds? It already should be put in place. It's unacceptable that we're being treated this way as citizens - all in the name of greed.