Residential Broadband Services by Telephone Companies?

Technology, Economics, and Public Policy

by Leland Johnson, David P. Reed

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This report assesses telephone companies' prospects for providing integrated broadband networks for voice, data, and television services to homes. Currently, they are prohibited from competing with cable companies in offering television services. The analysis suggests that lifting the restrictions on telephone company entry into the cable market would lead neither to increased competition in the television market nor to the emergence of new services. Telephone and television services would continue to be offered on separate networks. Switched video — a service that would permit users to be switched on a one-to-one basis to selections from a multitude of program sources — is the only new residential service that telephone companies might provide with fiber.

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