The Impact of Broadband

The Impact of Broadband - January 16, 2006

Its about time I shared some thoughts about broadband. Broadband is important. Broadband is awesome. Broadband is almost here. DSL and cable are more like narrowband. They are fast, but not that fast. When Verizon finally rolls out FioS, then we'll have real broadband. Other options look to be available too, like broadband over power lines, and broadband from your electric utility, or municipal wireless.

Whatever these options you choose, your new broadband service will no doubt have a serious impact on your life, as well as the lives of those around you. No, it probably won't be overnight, but it will happen quickly.

One difference will be the way you communicate with your friends and family. Long distance will be cheap, and video conferencing will be easy.

Another difference will be the way you are entertained. You will probably be able to select, a la carte, what types of television, music, and film you and your family would like to experience, giving you more parental control, and reduced pricing on entertainment consumption. Furthermore, you will more likely be able to avoid television commercials altogether, or at least reduce them. Marketers will soon be able to target consumers with greater accuracy, rather than the broadcast advertising techniques currently used, which end up displaying ads which have absolutely no relevance to some viewers.

Broadband will also affect the way you work. You will likely be able to telecommute more effectively, use software as a service more efficiently, and collaborate with other people sight unseen.

Per Clayton Christensen's disruptive model, things are going to get a little messy. Especially when it comes to telecommunications tax.

There are a few other things happening in the world today that will be interesting to watch unfold. As Verizon plans to roll out FioS, they will also be offering television services. At the same time, movie rental store killer Netflix, and now Apple, allows you to watch TV shows without commercials, on demand, at lower prices. Needless to say, the cable companies probably aren't too happy about this. To boot, the cable companies have invested heavily in their networks, as well as the communities they serve, something that they will surely remind lawmakers of as they lobby against Verizon's ability to score cable franchise agreements.

On the sidelines, electric companies are coincidentally updating their meter reading technology. They'll most likely be using the wonderfully low-maintenance fiber optic cabling, which, as it turns out, can also carry broadband. And joining the fray are municipalities looking to empower their citizens with cheap or even free wireless internet access.

From the consumer's perspective, this is all good. First of all, because it will provide them with choices (which, it turns out, is good for the marketplace, too!). Secondly, because it means progress. Having all these things happen at the same time, it is unlikely that bureaucracy will deftly step in and slow things down. We'll see. (This page has been relocated from Informed Banking.)