Towerstream issued a press release explaining how the FCC's subsidy ruling pumps broadband wireless: I reproduce their press release after the jump because it's an interesting bit of analysis. The FCC ruled (PDF news release) that incumbent carriers, the Baby Bells et al., no longer need to subsidize competitive carriers in urban areas for their high-speed commercial digital services; this doesn't cover DSL, but rather T-1 (1.544 Mbps) and DS3 (45 Mbps) services. This means, Towerstream says, that the price of a wired T-1 and DS3 loop will increase because it can. Thus, their syllogism goes, it's now even more price competitive to go with their wireless high-speed, high-availability service.
TowerStream: FCC Ruling to Strengthen Demand for Wireless Broadband Alternatives
Middletown, R.I. - December 17, 2004 - On Wednesday, December 15, the Federal Communications Commission (FCC) ruled that Incumbent Local Exchange Carriers (ILECs) such as Verizon and SBC are no longer required to subsidize their competition, the Competitive Local Exchange Carriers (CLECs) in high-density metropolitan areas. It is widely recognized that the FCC ruling will empower ILECs to raise prices on T-1 and DS3 loops in dense urban environments.
The only way to avoid the impending rise in prices is to bypass the ILEC's wires altogether. TowerStream, which provides business-class wireless Internet access to over 700 businesses in five major metropolitan areas, and other broadband fixed wireless providers currently represent the only alternative for businesses to completely sever ties with the phone company for their telecommunications needs, keeping prices low. Over the past four years, businesses have been replacing their T-1 and DS3 Internet access with TowerStream's guaranteed wireless service.
"The FCC ruling casts uncertainty over the CLEC industry for months and perhaps years to come," said Jeff Thompson, President and COO of TowerStream. "Subsidies have been steadily declining, and have now reached the point where ILECs will have no constraints to raise their T-1 prices in dense urban areas. TowerStream's urban business model has successfully demonstrated that it is possible to provide facilities-based competition without reliance on the incumbent's facilities. Most businesses don't realize that there is a cheaper, faster, more reliable alternative to their phone company's service that is available right now."
Towerstream provides T1 up to 100 Mbps connections to businesses in New York, Chicago, Los Angeles, Boston and Newport/Providence. TowerStream fully supports VoIP, allowing customers to bypass the phone companies for both their Internet and phone solutions.