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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