Posted by: Claudio Carbone | 29 June 2011

Where Internet is the new golden infrastructure

Video

 

Follow this Engadget inquiry into the Broadband state across the ocean.

They lament the US Feds don’t do enough to spread open their market, like Europe did with Unbundling.

That’s an economic/financial contract to allow the former market dominants (usually the big old companies that inherited all the landlines) to lend their lines to different service providers.
That way material propriety of the cable remains the same, but any provider can use any cable to bring its service to the customers, just by paying transit fees.

This is in essence why that’s so good: it doesn’t force a company out of the market (the old dominant) but puts a wedge in its lock and allows other entities to enter the same market by piggybacking for a cost.
Marvelously smart!
We have it in Italy too, still there is practicly no constract below 20€, and we just have two tiers:

20€ – internet + phone (paid for each call)
40€ – internet + phone (all inclusive)

Average speed is 8 MBits / 0.5 Mbits
Maximum speed is 20 Mbits (best effort, if signal is good enough) / 1 MBits

There is no market choice for quality, or upload speed, or time-of-day, or gaming.
More then 10 operators, for 60 million people, offer the same 2 constracts for the same 2 prices.

In the video you can see UK Ads campaign for commercial services down to less then 4£ a month! (minute 1:39 in the video)
In Italy the cable lending fees are ruled by the Autorità per le Garanzie nelle Comunicazioni.
The last ruling was in December 2010, and issued a prompt reply from the EU stating those prices were not good.
In fact AGCOM forcefully raised lending fees to these levels

  • 2010 8.70 €
  • 2011 9.02 €
  • 2012 9.28 €

That’s money that gets directly shifted onto the end user monthly fees.
So to confront UK and Italy: in Italy a contract that goes for 3.49 € like in UK, HAS TO PAY the incumbent another 5.53 € !!!
Meaning no one could ever offer anything below 10€ by legal ruling! And even that low would be insane.
Now think about this: more then 9€/month (PER LINE!) to justify maintenance on a landline.

Am I the only one doubting the amount?

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