Telecom for Medicine: Public Networks Beat Monopoly and Duopoly

Date: 21 Feb 2012 | posted in: MuniNetworks | 0 Facebooktwitterredditmail

This is a good news/bad news story. The good news is, cable companies are starting to challenge telco dominance in health care communications. According to Bloomberg, they are “ramping up sales staffs to sell broadband access and related services to regional hospitals and doctors’ offices, trying to squeeze more money out of a network they used to use mainly for carrying TV signals.”

The bad news, of course, is that as we transition to digitized medical records, our medical system will be increasingly dependent on the cable/phone duopoly. All companies cited in the article anticipate substantial revenue growth from the health care sector in coming years. Unfortunately, increased revenues to the telecommunications providers means any efficiencies are unlikely to translate into lower health care costs.

Compare this to OneCommunity’s HealthNet, which is driving down costs for health facilities across Northern Ohio by providing affordable access to their gigabit network.

OneCommunity is a non-profit entity that owns and operates its own fiber infrastructure and also promotes interconnection among public and private networks in the region. Its own network is carrier neutral, meaning any service provider can lease access. It connects more than 1,500 entities in 22 counties, including some 65 hospitals. As we've written here, OneCommunity has created enormous cost savings by allowing health care entities to communicate directly with one another, avoiding Internet transport fees.

Photo by therichbrooks on Flickr - used under Creative Commons license.

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Christopher Mitchell

Christopher Mitchell is the Director of the Community Broadband Networks Initiative with the Institute for Local Self-Reliance. He runs MuniNetworks.org as part of ILSR's effort to ensure broadband networks are directly accountable to the communities that depend upon them.