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Why do we anticipate a market failure with net neutrality? If one broadband company throttles services in a way we don't like isn't there a market for one that
by will_critchlow 16y ago
Why do we anticipate a market failure with net neutrality? If one broadband company throttles services in a way we don't like isn't there a market for one that doesn't?
In other words why won't a competitor come along and offer a neutral service if some providers start throttling?
I must be missing something in the argument, broadband companies don't have monopolies do they?
- moultano 16y ago>broadband companies don't have monopolies do they? In most areas of the US they do.
- will_critchlow 16y agoAh. In which case regulate the crap out of them :)
- nanairo 16y agoIf I remember my Economics studies your argument applies to a free market. But broadband companies have a very large initial capital investment which raises the bar for entrants. For wireless you also have a limited number of frequency licenses that limit supply. And when supply is very limited, and you know that it will be very very hard for anyone else to enter the market, then you oligopolies can appear. That said, I don't know the USA market enough to say if they currently have a monopoly or not, or if they are colluding or not.
- will_critchlow 16y agoYeah. You're right. On reflection I think there is a problem much like termination in mobile phone markets where the only way to reach a subscriber of a particular company is via their network... I think my original comment was just wrong.... Carry on!