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The magical thinking with less regulatory power = more competition with regard to utilities like last-mile internet comes down to 1) infrastructure cost and 2)
by warfangle 11y ago
The magical thinking with less regulatory power = more competition with regard to utilities like last-mile internet comes down to 1) infrastructure cost and 2) lack of access to shared infrastructure.
For most potential players, it simply costs too much to even think about entering the market. Truly unregulated free markets are great in theory, but are instantly distorted when you take things like reality into account.
Part of what the recent net neutrality rules did is ensure that power utilities must lease pole/conduit access to internet utilities at the same rates they lease to cable tv and telephone utilities. This helps reduce cost to enter the market.
- Diamons 11y agoUnregulated free market theory works. When you say it's instantly distorted by reality, I think that's true if you take a small picture view of the world. But if you look at it from a 5 year, 10 year, or even 100 year perspective, the free market is what brought us Dialup, DSL, Cable, FiOS, WiFi and whatever's after WiFi. I think the free market has done a great job.
- Jonoco 11y ago> the free market is what brought us Dialup, DSL, Cable, FiOS, WiFi and whatever's after WiFi Government research and subsidies brought us these. The market only sold them.
- um_ya 11y ago> Government research and subsidies brought us these. The market only sold them. You do realize that the government pays (with private company tax dollars) other private companies to do things for them, don't you?
- afarrell 11y agoEither that or it hires private individuals and pays them to do it. What is your point? In either case, the govt is making the resource-allocation choice.
- lstroud 11y agoYour point is well taken, but if memory serves, the specific technologies listed were developed by private corporations and industry consortiums. Would be interested to see a fact checked history on this, however.
- afarrell 11y agoEither that or it hires private individuals and pays them to do it. What is your point? In either case, the govt is making the resource-allocation choice.
- karzeem 11y agoA large portion of the costs of building last-mile infrastructure come from regulations imposed by local governments. http://www.wired.com/2013/07/we-need-to-stop-focusing-on-just-cable-companies-and-blame-local-government-for-dismal-broadband-competition/ http://www.wired.com/2013/07/we-need-to-stop-focusing-on-jus...
- gcb0 11y agowhich may serve more big investors building yet more sprawling suburbs than regular people