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> No, in your scenario, customers pay $50, and EVERYONE pays $10, including those who use a private competitor. That is why I proposed the municipal broadband
by com2kid 9y ago
> No, in your scenario, customers pay $50, and EVERYONE pays $10, including those who use a private competitor.
That is why I proposed the municipal broadband system be self funding, preventing any market distortion.
I admit I wasn't clear about it, and you are correct that in a scenario of anything other than 100% of the population switching over to the municipal provider, a subsidy effect does occur.