No one disputes the importance of broadband access for economic growth and job creation. That's why five cities - Wilson, Salisbury, Morganton, Davidson and Mooresville - invoked their self-help traditions to build and operate broadband systems after years of neglect from for-profit providers, which focus their investments in more affluent and densely populated areas. Not coincidentally, all five cities own and operate their own power systems or have ties to nonprofit electric cooperatives.
More Evidence for Looming Broadband Monopoly
DSLReports has accurately noted the continued decline of competition between DSL and cable providers. Heck, it seems like no large company wants to invest in the future of broadband in this country. Verizon and AT&T have chosen to focus on wireless technology, resulting in less true competition. Cable (or FTTH if you are lucky to have that option) tends to offer faster, more expensive connections and DSL is the slower, less expensive option for many.
As we noted in an earlier post, Verizon no longer offers stand alone DSL and is voluntarily losing customers to focus on their more profitable (and more expensive) fixed LTE service. Many of the companies providing DSL service simply lack the interest or capacity to invest in modern networks.
Windstream lost broadband subscribers last quarter for the first time ever losing 2,200 subscribers for a 1.36 million total. Verizon added just 2,000 net broadband users last quarter, the worst quarterly result in four years. The AP quotes Verizon as saying that the hit was due to Verizon's decision to stop selling standalone DSL.
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Meanwhile, smaller telcos like Windstream, Frontier, Fairpoint and CenturyLink find themselves unable or unwilling to upgrade their networks to keep pace with faster cable speeds. That's going to result in considerably more bloodshed for the telcos as additional subscribers jump ship (assuming they have the choice), resulting in cable's domination of the U.S. residential broadband market.
Continued reliance on these companies to build the essential infrastructure our economy and citizens need is foolish. The incentives are all wrong for their model and the amount of public money it will take to bribe them into building better infrastructure would offer far higher returns when invested in models that are democratically accountable to the community -- networks owned by local governments, cooperatives, or other nonprofit organizations.

Comments
The real headline should read...
More evidence of the need for community owned telecom infrastructure.
The large investor owned companies have had near monopolies for decades. That's not new. The new development is that the Internet has disrupted their business models, which cannot accommodate the need to change out their networks to accomodate Internet protocol-based telecommunications. Hence the need for a local alternative to remedy this market failure.
Check out the stunning
Check out the stunning revelations from Verizon and AT&T about their future in the landline business on Stop the Cap! We have AT&T setting a date of 11/7 to discuss their future in rural landlines, with the decision how to proceed made by corporate execs and Wall Street (no need to talk to ratepayers) and Verizon is now openly admitting it diverts wireline investment to help boost its wireless business, where profits are vast and usage caps are small.
Any community stuck with dead-end DSL (or worse) with either telco is at serious peril of being left behind with no broadband improvements.
A word to the wise: AT&T and Verizon do not represent the interests of your communities, they represent the interests of their shareholders. If you hold your breath for something better, you'll be dead waiting.
Any responsible local official seeking participation in the new digital economy trapped by substandard broadband must begin preparations to take charge of their community's telecommunications future. Private phone and cable companies are simply not there for you and never will be.
You would be doing your citizens a disservice not laying the foundation for a community-owned broadband platform and last-mile network. Yes it will cost money. Yes some residents will not understand the importance of doing this. But everyone understands not getting a job because they can't meet the employer's requirements, and small businesses already know they can't compete if they are stuck with dial-up.
In the 1930's and 1940's, it was the same argument over electric service. If we did as private providers wanted, a lot of rural communities and farms would still be waiting for basic electricity today, with loads of excuses along the way.
Phillip Dampier
Editor, Stopthecap.com