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Economies of scale do not really happen for ISPs when there's strong regulation allowing for virtual operators. If you grow very large, you are expected to prov
by distances 9y ago
Economies of scale do not really happen for ISPs when there's strong regulation allowing for virtual operators. If you grow very large, you are expected to provide more user support, public relations, advertising, and other similar functions that just cost extra. Small virtual ISPs can operate close to the actual costs.
It's basically a two-tier market: a few expensive name brands, and lots of low-cost, low-support brands.
- dragonwriter 9y agoBack when DSL was regulated that way, it was pretty much the reverse; the big name brands wrode on being the obvious default choice with horrible user support, while the independent resellers often had stellar support (less slick advertising, but probably higher advertising cost per user, because of economies of scale.)
- distances 9y agoWell, "more user support" doesn't mean it's better, just that they need more of it. The big names have all the basic users who likely call much more even for basic things like Windows problems, while the small ones get to concentrate on relevant issues with more knowledgeable user base.
- calgoo 9y agoWell, here in spain the difference was that once the virtual providers came in, i could actually get technical support versus the big providers where it was next to impossible. The installation time also went from 90+ days to 5+ days, and the big providers had to improve as well.