I’ve talked about the seemingly opposing views of broadband competition – we need lots of competition to keep prices low and options high AND in unserved areas (mostly rural areas) competition is an issue because there isn’t enough business to go around. I came across an interesting site – the Big Old Broadband Cafeteria the other day, which strongly supports completion. Here’s their pledge…

“I want MORE choice for broadband service. I do not want a monopoly or duopoly controlling my access to the Internet. Broadband competition brings lower prices, better service and more innovation.

Policy makers must make broadband competition a priority in Washington DC. Our leaders must encourage broadband competition across all technology platforms, and make access to more choices available to all. The result will be better service for our homes and businesses, and our schools, hospitals, and government buildings.”

I was just talking about competition in my neighborhood the other day – and coffee shops. A franchise moved into a building across the street from a beloved independent coffee shop. People were up in arms! But it was the best thing to happen. The independent upped their game with new furniture and WiFi. And a few years later both places are packed. It’s become a coffee corner – everyone knows you can get good coffee there.

The same can happen in a rural town – a little friendly competition and everyone ups their game. And in the process, they just might increase the overall take-rate making a business case for more than one provider. Another issue (and I’m hoping to post info based on comment on a recent post on whole sale cost of broadband) is the wholesale or backhaul cost of providing broadband. Sometimes competition doesn’t just support the end customers but helps folks all the way down the supply chain.