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Wireless does have some features of a natural monopoly. In order to compete with Verizon Wireless, you need access to a finite amount of wireless spectrum. The
by reeddavid 9y ago
Wireless does have some features of a natural monopoly. In order to compete with Verizon Wireless, you need access to a finite amount of wireless spectrum. The FCC auctions off exclusive access to the wireless spectrum, so you can't just start competing with Verizon on the same spectrum.
This is pretty similar to how you can't just freely add your own fiber to a utility pole, or freely build your own utility poles.
- apatters 9y agoThat's right - wireless isn't a natural monopoly, but it is a natural oligopoly. Oligopolies tend to be better for consumers than monopolies, but still not great, because the firms involved only have to deal with a few competitors and tend to develop cartel characteristics. Oligopolies also appear to be the future of the American economy, with new business formation on the decline and wealth + market share concentrating under the few largest players in many industries. So perhaps the discussion we should be having is, should we do something about oligopolies, and what? We already have antitrust laws, are they adequate? Are they being enforced?
- icebraining 9y agoHow is it "natural" when it's a governmental allocation? The point of the expression "natural monopoly" was to distinguish them for State-granted monopolies like those.
- Kluny 9y agoIt's natural because there's only so much bandwidth and you can't make more.
- icebraining 9y agoThat describes any hard commodity, no matter how common. Is water a "natural monopoly"?
- ionised 9y agoYes. It is a utility.
- drexlspivey 9y agoHow about plutonium?
- 4ad 9y agoPlutonium is not traded on the free market.
- icebraining 9y agoNo, that's water pipes to your home. You can buy water in many, many, many other ways.
- ionised 9y agoI assumed you meant water piped to a home as broadband is cabled to a home. I can't go out and buy a bottle of WiFi to use how I see fit.
- Spivak 9y agoSure, but you can buy alternative methods of accessing the internet to keep this metaphor going. They're expensive and aren't as convenient but that's true of having to go to the store to buy bottles of water as well.
- deleted 9y ago[deleted]
- Kluny 9y agoThe pipes that service a city are.