There was a time when you had just a single choice for Internet connectivity. That was the incumbent local phone company. Now you may have many other choices, as competing networks move into your area. Let’s have a look at overbuilding and the opportunities it provides.
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In the beginning there was only one network and that was the PSTN or public switched telephone network. The phone network is the original telecom network that started with Alexander Graham Bell and expanded to cover the world. It’s a very specific network, designed for voice communications. Computers came later. Any computer that wanted to talk to any other computer had to mimic human telephone users. Hence, the acoustically coupled audio modem.
That had to change fast. First, with ditching the acoustic coupling. Then overcoming the 64 Kbps limits of a standard phone line. Telephone companies developed digital phone lines to multiplex or combine multiple circuits in to one larger capacity circuit. Business quickly adapted the copper DSL and T1 lines, and then SONET fiber optic lines, for computer connectivity.
Still, there was one place to get service and that was the phone company. After all, Ma Bell owned all the wires. Even when “deregulation” was introduced, those competitive carriers were simply rebranding telco lines they got at wholesale rates.
Cable: The First Overbuilder
Each town has a single incumbent local phone company. But each town also can have a community antenna company, later called a cable company, to deliver television. Utility poles might have power, telephone and cable wires running one above the other all over town.
The cable companies made technical upgrades. First, they added modem service to offer Internet access. Then they converted their networks to digital, with fiber optics as the backbone and coaxial copper as the drop to the premises. This, plus regular modem standard upgrades, allows cable to offer broadband Internet service that meets or exceeds what the phone company can provide.
When two different providers install networks to serve the same locations, that’s called overbuilding. It’s one on top of or over the other. It could also mean excessive building, but that hasn’t generally been the case in the almost insatiable demand for broadband.
Fiber Overbuilds in Cable Territory
Cable pretty much overtook landline telephone, including DSL broadband, for residential and small business Internet. So much so, that the telephone companies are decommissioning their copper assets. Twisted pair copper technology just couldn’t keep up.
What the telcos have done is overbuild their own copper networks with fiber optic cables. They actually had a specialized fiber service called SONET before cable came around, but it was too expensive for residential and smaller businesses. They’ve now adopted the more standard Carrier Ethernet over Fiber technology that is directly compatible with most computer networks.
Recently, competing fiber optic network companies have been overbuilding both cable and telco networks with their own fiber. Some cities have contracted with these companies to install fiber that passes every home and business. This is in direct competition with cable broadband that is already serving many if not most of those customers.
Telco Overbuilds with Fixed Wireless Access
The telcos have been busy building out wireless networks to serve mobile phones and computing devices. It this case there may be several competing wireless companies serving each town. The big three in the US are AT&T, Verizon, and T-Mobile. You never had a choice in landline phone service or cable, but you have had this advantage in wireless.
Now wireless is challenging cable and even fiber. As cellular networks upgraded to 4G LTE and 5G, the broadband speeds have increased. In areas where microwave 5G bands are installed, the speeds can easily compete with cable and fiber.
A proliferation of towers, large and small, is expanding the coverage so that a cellular modem, basically a phone that does just broadband, can provide primary broadband service for residential and business users. If the wireless companies have their way, they’ll displace cable in the same way cable displaced landline phone.
What does all this overbuilding mean for you? The competition tends to lower prices and increase service bandwidth. In other words, you wind up getting more value for less cost.
Which broadband option is best for your business? Check pricing and coverage for fiber optic, cable broadband and fixes wireless access now.
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