7 ms·
It costs a lot of money for ISPs to expand their areas of service. As such, they explicitly avoid expanding into areas where a competitor already exists (riski
by ep103 9y ago
It costs a lot of money for ISPs to expand their areas of service. As such, they explicitly avoid expanding into areas where a competitor already exists (riskier rate of return).
To counter this, government at all levels have provided tax subsidies or outright payment to ISPs to expand into their localities. And regularly, the ISPs simply take the money and do nothing, relying on the fact that they are large enough that they can fight it out in court.
The end result is a nation of monopoly coverage.
- SimbaOnSteroids 9y agoDon't forget the lobbying efforts that result in local legislation that make it illegal for other companies to move in, see google fiber or any of the municipal attempts.