Special Report: Untangling The Local Loop
The industry has been on a long, strange trip, seeking to break the last-mile bottleneck.
networkmagazine.com
by Elizabeth Clark
Network Magazine
04/05/01, 12:27 p.m. ET
While the adage “The journey is the destination” might look nice on that needlepoint pillow Aunt Martha sent you last Christmas, we'd better hope it doesn't apply to life in the local loop. The industry has been on a long, strange trip, seeking to break the last-mile bottleneck. So why has there been so much trouble going the distance?
First, there are the regulatory and competitive issues. With so many players in the race-including the RBOCs, Competitive Local Exchange Carriers (CLECs), ISPs, and more-it's no wonder the industry hasn't gained more ground. The squabbles between these factions continue to stick a spoke in the wheels of progress, and unless the powers that be-such as the FCC, federal courts, or Congress-can pry open the RBOCs' grip on the local loop, the path to true competition will remain the road less traveled.
Finances are another roadblock. Given last year's meltdown of so many local loop providers-most notably in the DSL space-it's difficult to determine who'll have enough chips to stay in the game. Providers must work harder and harder to wring out profits. And customers' financial woes have left more than one equipment supplier in the lurch, limiting the number of available options in the market.
Finally, there's the issue of technology. Until there's more assurance of at least reasonable profitability, service providers will be reluctant to roll out the infrastructure needed to truly clear that last mile. So why not just unplug everything and go with fixed wireless or satellite technology? Fixed wireless is susceptible to a variety of problems (including bad weather) and may not work as advertised for some time. Satellite technology has experienced its own crashes and burns, but new efforts are under way to revive this approach. The bottom line: Until numerous and complex competitive, financial, and technological issues are resolved, the last mile will not be the shortest distance between two points.
--Elizabeth Clark, Special Report Editor
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