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In the UK a lot of infrastructure (e.g. energy, fixed-line telecommunications, railways) is run by for-profit companies that are heavily regulated by the govern

by fyfy18 8y ago

In the UK a lot of infrastructure (e.g. energy, fixed-line telecommunications, railways) is run by for-profit companies that are heavily regulated by the government, but the service to consumers is provided by separate for-proft companies (sometimes owned by the same group who controls the infrastructure) which compete on price and the service they provide. From a consumer point of view this is good, as you have a choice over which provider you use. On the other hand the actual service you get is going to be the same from either provider, taking internet as an example, if you use the common infrastructure the speed you can get will be the same from all providers, and the only difference is in price and artificial limitations like data usage. Maybe electricity is a better example, as the electrons you receive will be exactly the same no matter which provider you use. Although the infrastructure is run for-profit, there is only so much than can be done on its own. The government regulations also limit upgrades, as they favour spending on underserved areas. This means even if you live in the most remote part of the UK you can probably get broadband internet (>1mbit), but in major cities you are getting much slower speeds than what other parts of Europe can provide (often no more than 70mbit). Most of the infrastructure was inherited when it was privatised 20-30 years ago, so all they have really done is run the infrastructure rather than build it out. A good comparison is mobile telephone infrastructure, which in the UK is exclusively owned, built and run by for-profit companies with minimal government oversight.

Reason077 8y ago
> In the UK a lot of infrastructure (e.g. energy, fixed-line telecommunications, railways) is run by for-profit companies that are heavily regulated by the government With the exception of HS1/Channel Tunnel, the vast majority of the UK's fixed rail infrastructure (stations, tracks, land, etc) is publicly owned. The train operating companies (TOCs) are, with some exceptions, privately owned. But because of the way they are franchised and regulated there is little competition between them, so it's quite different to the electricity or internet markets. > taking internet as an example, if you use the common infrastructure the speed you can get will be the same from all providers Not necessarily. Although each provider may share a common "last mile" infrastructure, ie the lines that run to your house, they must each arrange their own equipment and backhaul in the local exchange where that line terminates. Not all backhauls are equal and some providers perform better than others, especially at peak times. > Maybe electricity is a better example, as the electrons you receive will be exactly the same no matter which provider you use. Every unit of electricity you use has to be generated somewhere - and not all sources are equal. As a consumer, I might place a premium on low-carbon electricity, and choose a provider which promises to purchase only from wind turbines and other low-carbon sources.

by fyfy18 8y ago

Reason077 8y ago

> In the UK a lot of infrastructure (e.g. energy, fixed-line telecommunications, railways) is run by for-profit companies that are heavily regulated by the government With the exception of HS1/Channel Tunnel, the vast majority of the UK's fixed rail infrastructure (stations, tracks, land, etc) is publicly owned. The train operating companies (TOCs) are, with some exceptions, privately owned. But because of the way they are franchised and regulated there is little competition between them, so it's quite different to the electricity or internet markets. > taking internet as an example, if you use the common infrastructure the speed you can get will be the same from all providers Not necessarily. Although each provider may share a common "last mile" infrastructure, ie the lines that run to your house, they must each arrange their own equipment and backhaul in the local exchange where that line terminates. Not all backhauls are equal and some providers perform better than others, especially at peak times. > Maybe electricity is a better example, as the electrons you receive will be exactly the same no matter which provider you use. Every unit of electricity you use has to be generated somewhere - and not all sources are equal. As a consumer, I might place a premium on low-carbon electricity, and choose a provider which promises to purchase only from wind turbines and other low-carbon sources.