MobileBurn: Large Carriers Unlikely To Chase Broadband Stimulus

MobileBurn is reporting today that it looks like larger network builders like AT&T, Comcast, and Verizon are unlikely to chase stimulus dollars from the broadband expansion portion of the American Recovery Act.

I predicted this back on the first of April here.

These players are likely to stay on track with their own plans, using their own revenues to build out networks and avoid the potential regulation and oversight that government backed network build outs will probably bring.? The good news for smaller and upstart networks is that this may open the doors to some competition in underdeveloped and undeveloped areas of the country.? Though I prefer government not to be picking winners and losers, there are reasons why big players don’t build out in these areas.? They are either too costly, or won’t produce enough revenue for continued investment.

The problem here is the potential for government backed players to push non-backed network providers out of the market.? Something we will have to keep a watchful eye on in the future as new networks are rolled out using stimulus monies.

-nick