Telecom Financing and Development: What’s Old Becomes New Again

Telecommunications funding has never been a cheap or low expense industry. Many years ago cable companies and those in telecommunications had to come up with telecom funding to cover the enormous costs of installing and laying down copper cable lines. Such telecommunications funding would also have to cover the costs of digging up the ground, the materials themselves, labor, payroll and local permits to pay for such endeavors.

Telecom Factoring to Help Cover Costs of a Changing Industry

Telecom Financing needed for new high speed internet breakthrough
As if the cost of laying copper landlines was not expensive enough, the technology then drastically changed. A faster, more robust option — fiber optics cables — came along allowing more data to travel faster over the same systems. With consumers and businesses demanding more data, greater speeds and bandwidth, the new problem developed: is it viable to tear out existing — and expensive — copper landlines to install the new fiber optics cables. In aging, densely populated areas such as New York City, there is a limited amount of space (underground and aboveground) for such involved undertakings requiring this kind of massive telecom financing.

Telecom Funding Needed to Implement Game-Altering Technology

And now a brand new, beta-phase technology is being developed that looks to upend the telecommunications and IT sector yet again. Developed by the folks at Bell Labs (owned by Alcatel-Lucent) researchers have come up with a new way to provide fast, high-speed internet over traditional old school copper landlines. If proven to work overtime – the product is still in the testing phase – it could enable speeds of up to speeds of 10 gigabits per second, which is faster than Google Fiber, the fastest available broadband to date.

Spend Money to Save Money with Technology Financing

What’s more, such a technology could save millions of dollars in telecom working capital. By using copper landlines, which already exist in the vast majority of cities and towns across the country, cable companies and others would not have to invest as much on telecom financing. That is, instead of tearing out the old copper lines and replacing them with new fiber optics, the new technology could be built on top of the old saving time, labor and of course money. Experts predict exponential cost savings.

Though it remains to be seen how this new telecom technology will progress, industry analysts — and everyone interested in faster internet speeds – are watching this development very closely.

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About the Author:

Robert Bernfeld started in the commercial finance industry in 1974. His early years included positions with Aetna Business Credit and Foothill Group. During the next thirty five years. Mr. Bernfeld established both equipment leasing and accounts receivable factoring companies. He partnered in founding Business Facilitators, Inc. in 1999. Mr Bernfeld graduated from the University of California, Riverside in 1974 and received his Juris Doctorate from Loyola University School of Law in 1977.

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