4 ms·
I don't think the problem is that ISP market is a monopoly or even an oligopoly. I think the problem is that it has successfully formed a cartel[0]. Breaking
by CivBase 6y ago
I don't think the problem is that ISP market is a monopoly or even an oligopoly. I think the problem is that it has successfully formed a cartel[0]. Breaking up ISPs would just create more members of the same cartel.
There are many ISPs who could compete with one another, but have an unwritten agreement to not compete. Competition drives lower margins, which just aren't worth it when you consider the upfront investment to start building out networks in a competitor's neighborhood - especially since the competitor is likely to retaliate by doing the same in your neighborhood. It is more cost effective for them to milk everything they can from the regions they currently dominate.
Whatever the solution looks like, I think it will have to actively incentivize ISPs to compete for each other's customers instead of just adding more ISPs to the market.
[0] https://en.wikipedia.org/wiki/Cartel https://en.wikipedia.org/wiki/Cartel