Truth from Knowledge@Wharton

This is a great article from the University of Pennsylvania’s Wharton School of Business eletter, Knowledge@Wharton.

It looks at the decision by Verizon Communications to invest heavily in fiber to the premises technology — the same technology that the Lafayette Utilities System (LUS) proposes to roll out in Lafayette.

In the process of reviewing this decision, the professors and analysts quoted provide a clear-eyed picture of the challenges facing the Regional Bell Operating Companies (RBOCs), like BellSouth. The article blows huge holes in the pitch by the BellSouth Louisiana team that somehow they can get their DSL infrastructure to support video deployment in a way anywhere comparable to the kinds of service available over cable systems. The notion that this fiber-to-copper based technology (DSL) is (or could ever become) the near equivalent of fiber is laughable.

Overall, the article is yet another powerful validation of the LUS infrastructure strategy. It also reinforces the point I’ve been making here: the RBOCs (and BellSouth is ours) face considerable challenges that leave no inexpensive, low-risk way out.

Knowledge@Wharton is a free eletter. You may have to register to access the article, but it’s well worth the effort. Besides, by registering, you’ll get this always useful eletter sent direct to your own email box every week or so.

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