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Why There Are So Few ISP Start-Ups In the U.S.

An anonymous reader writes "Despite whispers of growing dissatisfaction among consumers, there are still very few ISP start-ups popping up in communities all over the U.S. There are two main reasons for this: up-front costs and legal obstacles. The first reason discourages anyone who doesn't have Google's investors or the local government financially supporting them from even getting a toe in the business. 'Financial analysts last year estimated that Google had to spend $84 million to build a fiber network that passed 149,000 homes in Kansas City, with the cost per home at $500 to $674.' The second reason will keep any new start-up defending itself in court against frivolous lawsuits incumbent ISP providers have been known to file to bleed the newcomers dry in legal fees. There are also ISP lobbyists working to pass laws that prevent local governments from either entering the ISP market themselves or partnering with private companies to provide ISP alternatives. Given these set-backs and growing dissatisfaction with the status quo, one has to wonder how long before the U.S. recognizes the internet as a utility and passes laws and regulations accordingly."

2 of 223 comments (clear)

  1. falling behind by harvey+the+nerd · · Score: 0, Flamebait

    Parts of Asia have their act together. The US is largely a 2nd world country in terms of internet access and rates.

  2. For God's Sake, Internet is a LUXURY not a UTILITY by Anonymous Coward · · Score: 0, Flamebait

    Nobody NEEDS the Internet for anything. It is wholly and fully a luxury item. Being able to look at funny cat pictures is not a dire necessity for anyone to get through life, and there is nothing that can be accomplished on the Internet that can't be accomplished by some already-established method.

    There is no rational basis upon which to make the claim that the Internet is a utility.