[HN Gopher] Internet providers that won FCC grants try to escape...
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Internet providers that won FCC grants try to escape broadband
commitments
Author : specto
Score : 30 points
Date : 2023-08-02 21:38 UTC (1 hours ago)
(HTM) web link (arstechnica.com)
(TXT) w3m dump (arstechnica.com)
| pessimizer wrote:
| That's what they're economically motivated to do, and it will
| work. The main job of your insurance companies is to find a way
| to refuse your claim, and the main job of the recipients of
| government grants is to reduce deliverables and compliance
| monitoring.
|
| -----
|
| > Telecom industry consultant Doug Dawson wrote a blog post
| calling the RDOF process "badly flawed since the beginning. Some
| auction winners bid down prices a lot lower than expected. The
| areas that were available in many places are scattered and don't
| create a reasonable footprint for building a broadband solution."
|
| > "I have no doubt that many RDOF winners are now looking at a
| broken financial model for fulfilling their promise. They are
| stuck with a terrible dilemma--build the promised networks and
| have a losing business or pay a substantial penalty to withdraw
| from RDOF," Dawson wrote.
|
| https://en.wikipedia.org/wiki/Winner's_curse
| polygamous_bat wrote:
| Invisible hand of the market in action, isn't that wonderful.
| Sniffnoy wrote:
| Hm, I guess a second-price auction would only help somewhat
| with that, huh?
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