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> Communications is a natural monopoly At the backbone level, perhaps, but for historical reasons cable and phone companies were separate, and thus we have bot
by hx87 10y ago
> Communications is a natural monopoly
At the backbone level, perhaps, but for historical reasons cable and phone companies were separate, and thus we have both Comcast and Verizon providing last-mile communication services. I already have both phone and cable lines to my apartment, so it's more of a natural duopoly there, and even duopolistic markets should have nonzero competition.
- bduerst 10y agoIt was just as much a natural monopoly historically as it is now. The last mile cost you talk about is the barrier to entry I mentioned. Again, it's not a very good example because (historically or not) it's a market that lends to less competition by default. Even Google is having problems with this natural monopoly: http://www.theverge.com/2016/8/15/12492890/google-fiber-wireless-plans-la-chicago-dallas http://www.theverge.com/2016/8/15/12492890/google-fiber-wire...