The Death Of Line Sharing… Leads To The Rise Of Unintended Consequences
from the that-didn't-take-long-at-all dept
As the courts and the FCC have basically killed off any mandated line sharing by the big telcos and cable companies, the firms that lived off line sharing knew they were in trouble. While some thought the new rules would be the near immediate death of some of these providers, others (including the FCC) hoped that it would spur them to look into alternative technologies, such as wireless. It didn’t take long at all for that to happen. Yesterday we pointed out that Earthlink is actively trying to push into the muni-WiFi space and today comes the news that Covad is buying a fixed wireless ISP — coming just days after it was rumored that they’re going to launch a fixed wireless solution in San Francisco. While it remains to be seen if these companies will really be able to make these wide area wireless solutions work on a widespread basis (and there are some big challenges there), it’s amusing to think that they’re quickly becoming thorns in the side of incumbent telcos. It was the incumbents, after all, who fought so hard to end the line sharing rules — and the end result is they’ve potentially turned their partners into much more threatening competitors.