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Last-mile networks

by | Jun 8, 2007 | Musings

There are some examples of last-mile networks that are becoming clearer to me. Consider:

  • Telecom: Verizon, ATT or some major company owns the ‘last mile’ of actual physical network that runs from the street into your living room. So irrespective of who provides the actual service in the central routing point, these last-mile owners rake in part of revenue generated.
  • Cable: Same with Comcast or Cox. They own the physical last few yards of cable that brings the entertainment to your TV.
  • Local healthcare providers (general practitioners, family physicians) can be seen as the last-mile network that big IDNs (Integrated Delivery Networks) and hospitals miss. The big players are always in need to bring in the last-mile players into their network.

Now lets see how new generation companies are changing the rules of game by obviating the need for ownership of ‘last-mile’ networks.

  • Vonage and VoIP companies disrupt standard telecom-providers by circumventing the need for specific telephone wiring to the home.
  • Dish and DirectTV  work around cable providers  with satellite communication. So does Joost, in terms of content distribution.
  • Telemedicine and remote monitoring technologies make it possible to take care of chronic diseases without actually visiting your big hospital ER.

I’m not sure what exactly, but there is a pattern here. Something around the impending value-depreciation of last-mile networks. Stay tuned while I sharpen my mental axe to trim this overgrowth..