Tuesday, October 25, 2011

You Know the Rules of Rural Broadband are Changing, Right?

Minnesota’s LocalLoop announced last week that it has developed, in partnership with Israel’s Runcom Technologies, a new 4G product designed to deliver Internet access to those in underserved rural areas. LocalLoop believes this new cloud-based, turnkey solution will revolutionize the industry. Rather than rely on the established notion that carriers need localized, on-site equipment to distribute the service, LocalLoop says its’ cloud-based, Software-as-a-Service (SaaS) platform avoids the limitations of the existing systems, and at a reduced cost.

Meanwhile, political candidates and the established providers are fighting over money and ideas to extend the old networks. Do they not realize that the rules of rural broadband are changing?

While the old guard remains bogged down in stale battles, the upstart companies are redefining the game. Cloud-based, wireless internet service providers (WISPs) are developing new technologies that make the “last mile” talk irrelevant. Companies like LocalLoop and PowerCloud™ Systems are creating new, forward-thinking business models that capitalize on cutting-edge technologies. Perhaps even more noteworthy is that these companies are doing so using private funding. The push and pull of governmental finance options becomes irrelevant.

The Federal Communications Commission (FCC) issued a statement recently that it is close to revising the Universal Service Fund (USF), which determines how rural companies are subsidized. The new rules are supposed to add emphasis to broadband communications. Based on what’s happening in the private sector, you have to wonder if the changes are even going to be effective.

Labels: Local Loop, Rural Broadband