Panel urges FCC to cap rural phone subsidies

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You might have that backwards

It is government regulation that makes cable companies service rural areas at all. Cable companies would rather not service rural areas. Same goes for telephone companies.

In a large city, you can service 1000 paying customers with a mile of cable. In rural areas, that same mile of cable may only service a single customer, or maybe none at all. If it wasn't for government regulations, there would be no phone service at all in rural areas.

I'd rather see them subsidize wireless only for rural areas to reduce the cost of infrastructure. Wireless can deliver communications and Internet access at a lower actual cost than wired infrastructure. Communications companies charge more for wireless services because they can.

Posted by: WiredGuy   Posted on: 11/27/07 You are currently: a Guest | Members login | Terms of Use

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