Company A owns the physical fiber, they also own the point-of-presence where all the fibers end up (basically a room with lots of rack space). Company A does not sell Internet service.
Company X, Y and Z provide internet service to consumers. They rent the physical fiber from company A, they also rent rack space in the PoPs where their customers fibers terminate. Cost for electricity, air conditioning, in the PoP is shared by all companies that use that PoP, by ratio of number of customers. (e.g. if company X has 100 customers connected to one PoP and Y and Z each have 50, company X pays 50% of the utilities bill and Y and Z each 25%).
In case of company X/Y/Z, all the infrastructure is theirs with the exception of the physical fiber and the PoP room, that includes the fiber ‘modem’ (mediaconverter) or router on each side of the connection, switches, any backbone connectivity from the PoP onwards, all services, etc.
Some of these ISPs also resell their services to smaller ISPs, so company Q could simply be reselling a package from company X. Often they resell only a part of the service, e.g. they resell Internet from company X but add their own TV package.
They can of course also change this later on. My current ISP started by reselling services from one of the bigger ISPs, this basically gave them national coverage with little risk. Once they got established and had a decent number of customers they started rolling out their own network, city-by-city. They would install their own equipment into the PoPs in a city, change everyone over to their equipment (and distributed new media converters and routers) and they were no longer dependent on the big ISP. When they did this they cut the price of my internet connection by half while at the same time upgrading the speed from 200/200 to 1000/1000. Within a year or so they moved most customers to their own infrastructure.
And how do you get in such a situation? Very simple: company A wanted to install fiber and asked for a permit from the government to start digging up the streets and sidewalks. The government basically said: you can get a permit. but we don’t want a all this nuisance with digging up the streets every time someone wants to offer internet service, so you as a requirement for the permit you have to offer an open network with identical pricing to everyone who wants to use it.
Sure, but I live in ‘socialist’ Europe and I can already choose from 13 ISPs on fiber alone. I can only dream of the amount of choice people in ‘free market’ USA must have.
Sure, and that’s great for you! I am, honestly, envious.
However, you said “you could switch.” For many people, including me, we cannot switch while maintaining a reasonable connection. My options are my current ISP (really not too bad, for the first time in my life), an ISP that provides a maximum of 12Mbps, an ISP that still isn’t quite sure if it can provide service to me, or satellite (which is pretty awful for a variety of services I use regularly). Even discarding reasonable expectations, this is not a “dozen or so.”
While your proposal might be good for you and others in “socialist” Europe, many people (likely even outside of Europe and the USA) don’t have that option and it probably doesn’t help resolve the parent commenter’s complaint.
Edit: also, while the USA is behind Europe in many ways, I suspect this is not so much a Europe vs USA issue as a rural vs not issue.
Edit: also, while the USA is behind Europe in many ways, I suspect this is not so much a Europe vs USA issue as a rural vs not issue.
On the contrary, here the rural areas got fiber way before the cities did. It’s a lot less difficult to install fiber in rural areas compared to densely populated cities where the ground is already full of cables and pipes, and where the impact of having to close streets for digging are much bigger.
Even now, the fastest consumer internet is available in a small town in the middle of fscking nowhere, where they installed 10gbit fiber.
I am in the Communist country referred to as Italy, there are only 2 companies who actually have 4g infrastructures AFAIK, and the dozens of other carriers just rent the infrastructure from the tim/Wind3 duopoly
You could switch to any of their dozen or so competitors.
Wait until I tell who the “competitors” rent the infrastructure from
The way it works where I live:
Company A owns the physical fiber, they also own the point-of-presence where all the fibers end up (basically a room with lots of rack space). Company A does not sell Internet service.
Company X, Y and Z provide internet service to consumers. They rent the physical fiber from company A, they also rent rack space in the PoPs where their customers fibers terminate. Cost for electricity, air conditioning, in the PoP is shared by all companies that use that PoP, by ratio of number of customers. (e.g. if company X has 100 customers connected to one PoP and Y and Z each have 50, company X pays 50% of the utilities bill and Y and Z each 25%).
In case of company X/Y/Z, all the infrastructure is theirs with the exception of the physical fiber and the PoP room, that includes the fiber ‘modem’ (mediaconverter) or router on each side of the connection, switches, any backbone connectivity from the PoP onwards, all services, etc.
Some of these ISPs also resell their services to smaller ISPs, so company Q could simply be reselling a package from company X. Often they resell only a part of the service, e.g. they resell Internet from company X but add their own TV package.
They can of course also change this later on. My current ISP started by reselling services from one of the bigger ISPs, this basically gave them national coverage with little risk. Once they got established and had a decent number of customers they started rolling out their own network, city-by-city. They would install their own equipment into the PoPs in a city, change everyone over to their equipment (and distributed new media converters and routers) and they were no longer dependent on the big ISP. When they did this they cut the price of my internet connection by half while at the same time upgrading the speed from 200/200 to 1000/1000. Within a year or so they moved most customers to their own infrastructure.
And how do you get in such a situation? Very simple: company A wanted to install fiber and asked for a permit from the government to start digging up the streets and sidewalks. The government basically said: you can get a permit. but we don’t want a all this nuisance with digging up the streets every time someone wants to offer internet service, so you as a requirement for the permit you have to offer an open network with identical pricing to everyone who wants to use it.
Hugely location dependent.
Sure, but I live in ‘socialist’ Europe and I can already choose from 13 ISPs on fiber alone. I can only dream of the amount of choice people in ‘free market’ USA must have.
Sure, and that’s great for you! I am, honestly, envious.
However, you said “you could switch.” For many people, including me, we cannot switch while maintaining a reasonable connection. My options are my current ISP (really not too bad, for the first time in my life), an ISP that provides a maximum of 12Mbps, an ISP that still isn’t quite sure if it can provide service to me, or satellite (which is pretty awful for a variety of services I use regularly). Even discarding reasonable expectations, this is not a “dozen or so.”
While your proposal might be good for you and others in “socialist” Europe, many people (likely even outside of Europe and the USA) don’t have that option and it probably doesn’t help resolve the parent commenter’s complaint.
Edit: also, while the USA is behind Europe in many ways, I suspect this is not so much a Europe vs USA issue as a rural vs not issue.
On the contrary, here the rural areas got fiber way before the cities did. It’s a lot less difficult to install fiber in rural areas compared to densely populated cities where the ground is already full of cables and pipes, and where the impact of having to close streets for digging are much bigger.
Even now, the fastest consumer internet is available in a small town in the middle of fscking nowhere, where they installed 10gbit fiber.
Gotcha, thank you for the edification.
I am in the Communist country referred to as Italy, there are only 2 companies who actually have 4g infrastructures AFAIK, and the dozens of other carriers just rent the infrastructure from the tim/Wind3 duopoly