Thursday, June 12, 2008

Ultrafast Internet nearly up to speed

Three-dimensional high-definition TV is ready, and viewing it is breathtaking. But will people like the technology enough to pay extra? And can it pay off for network operators?

Phone and cable companies, including Verizon Communications, hope so as they prepare to launch ultrafast Internet service that can run at 100 megabits per second in some markets.

"There is a business case for ultrabroadband service in markets with a very dense population — New York, Chicago, Paris — but as a market's population gets thinner, the business case gets weaker," said Robert Atkinson, research policy director for the Columbia Institute for Tele-Information, a Columbia University-based center in New York City.

Network operators need to earn more than the $100 a month they get now from customers for Internet, phone and video service to make the investment of billions of dollars for network upgrades worth their while, said Atkinson, who recently addressed Chicago's branch of the Federal Communications Bar Association.


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