Thursday, August 2, 2018

Comcast, Charter Dominate US; Telcos “Abandoned Rural America"

You already knew that home broadband competition is sorely lacking through much of the US, but a new report released today helps shed more light on Americans who have just one choice for high-speed Internet.

Comcast is the only choice for 30 million Americans when it comes to broadband speeds of at least 25Mbps downstream and 3Mbps upstream, the report says. Charter Communications is the only choice for 38 million Americans. Combined, Comcast and Charter offer service in the majority of the US, with almost no overlap.

Yet many Americans are even worse off, living in areas where DSL is the best option. AT&T, Verizon, and other telcos still provide only sub-broadband speeds over copper wires throughout huge parts of their territories. The telcos have mostly avoided upgrading their copper networks to fiber—except in areas where they face competition from cable companies.

These details are in "Profiles of Monopoly: Big Cable and Telecom," a report by the Institute for Local Self-Reliance (ILSR). The full report should be available at this link today.

“Market is broken”

"The broadband market is broken," the report's conclusion states. "Comcast and Charter maintain a monopoly over 68 million people. Some 48 million households (about 122 million people) subscribe to these cable companies, whereas the four largest telecom companies combined have far fewer subscribers—only 31.6 million households (about 80.3 million people). The large telecom companies have largely abandoned rural America—their DSL networks overwhelmingly do not support broadband speeds—despite years of federal subsidies and many state grant programs." (...)

Comcast and Charter

Comcast, the nation's biggest cable company and broadband provider, offers service to about 110 million people in 39 states and Washington, DC.

"All of these people have access to broadband-level service through Comcast Xfinity, but about 30 million of these people have no other option for broadband service," the ILSR wrote.

Comcast's broadband subscribers included 25.5 million households, or about 64.8 million people, based on the average US household size of 2.54 people.

Charter, the second biggest cable company after Comcast, offers service to 101 million people in 45 states. 22.5 million households covering about 57.2 million people were subscribing to Charter Internet, according to the numbers cited by the ILSR.

Like Comcast, Charter offers broadband-level speeds throughout its territory. "About 38 million [people in Charter territory] have no other option for broadband service," the report said.

Comcast and Charter generally don't compete against each other. They have a combined territory covering about 210 million people, yet the companies' overlapping service territory covers only about 1.5 million people, according to the Form 477 data cited by the ILSR. The overlap is mostly in Florida, where Charter purchased Bright House Networks, and may be overstated because an entire census block is counted as served even if an ISP offers service to just one resident in the block.

by Jon Brodkin, Ars Technica |  Read more:
Image: ILSR