said by baineschile
:But should competition be subsidized by the government? Thats a step towards socialization.
Personally, if I started an ISP, i would target areas that would cost me the least amount to wire, with the most amount of homes passed (potential customers). The answer to this? Cities!...and densley populated suburbs around those cities.
Rural living and city living both have advantages and disadvantages; you dont see a lot of competition in any industry in small towns (one walmart, 2 or so chain restruants). Why should broadband be different?
At one time, celluar service was regulated by the government. There was a requirement that there be an "A" and "B" system in every market. The "A" system company could NOT have any interest in the local wireline service. The "B" system could have an interest in the local wireline service. Lease rates were also regulated so the "B" system couldn't out price the "A" on the same connections. In my area, the "A" system was Celluar One and the "B" system was Bell Atlantic Mobile.