Copper vs. Fiber: the New Digital Divide

The digital divide is typically defined as the gap between those who have access to high speed Internet and those who do not. But there is another digital divide looming in the future: the gap between copper and super-fast fiber optic services.

In a recent column, Broadbandtrends.com analyst Teresa Mastrangelo highlights this new kind of digital divide. She notes that while Verizon's switch to fiber "has reduced operating costs significantly while giving consumers faster speeds, higher quality, and unique services and features," it has come at the expense of improvements in Verizon's copper networks, which still serve a big portion of Verizon's customers:

And exactly what's happening on the copper side? Absolutely nothing. The 50% of Verizon's subscribers not on FiOS are basically left with a rapidly aging copper network. Unlike other telcos that are upgrading their copper plant with ADSL2+ and VDSL2 to offer speeds of 6 to 25 Mb/s and advanced services such as IPTV, Verizon is standing pat.

This lack of development in their copper network and the current limited reach of fiber optic lines is leading to frustration for Verizon customers. Because fiber to the home is expensive to install, it will be a long time -- if ever -- before all Verizon customers are wired with fiber. That means they'll either have to deal with the aging DSL network or switch providers. But as Mastrangelo says, that could cause bigger problems for Verizon:

On the surface, Verizon's lack of interest in its copper plant appears intentional: a means of eliminating its less lucrative markets by neglecting them to the point where customers are all too happy to choose an alternative operator. But it's important to remember that these revenue-generating customers are subsidizing FiOS, and once they are gone, rates will increase.

There's no doubt that fiber optic is the future of high speed Internet access, and Verizon's FiOS service is a welcome move toward this future. But it's important that while Verizon works on expanding its fiber network, it keeps its non-fiber customers up to speed as well. 

The Digital Divide (Speed Matters)

Fiber: The only answer to the need for speed (Speed Matters)

"The New Digital Divide" Teresa Mastrangelo (Broadband Trends)