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An oligopoly is fine as long as there's no collusion. If there is in the cell business, then yes, we have a huge problem. But if there isn't, then whatever ends
by pkulak 16y ago
An oligopoly is fine as long as there's no collusion. If there is in the cell business, then yes, we have a huge problem. But if there isn't, then whatever ends up happening will be fair to all parties. I don't really think the marginal costs for cell bandwidth will approach zero for a long time now, but, if it does, then we'll see unlimited plans pop up again just like they have for wired connections.
- w1ntermute 16y agoYou completely missed the point of my post. The issue is that when you have a monopoly or near-monopoly (oligopoly), the prices are primarily determined not by the cost for the sellers, but by the value for the buyers. Therefore, unless the amount of value that each byte of cellular data transfer provides decreases significantly for a significant portion of the telecom companies' customers, the prices won't decrease, regardless of what changes occur in the costs to the companies. That is, of course, unless the government steps in as it has in other countries and artificially fosters competition, so that the cost to the companies plays a more significant role in determining the prices.