4 ms·

Government-run enterprises are not fair competition since they have unfair advantages. One does not create competition by allowing enterprises which can do dump

Government-run enterprises are not fair competition since they have unfair advantages. One does not create competition by allowing enterprises which can do dumping at worst, and always have special advantages at best. The ISP market, being usually a duopoly or monopoly, is an exception due to how broken the market is. But in most occasions it is a bad idea. I don't doubt the proposal is in bad faith, but the excuse is reasonable.

kaibee 6y ago
> Government-run enterprises are not fair competition since they have unfair advantages. One does not create competition by allowing enterprises which can do dumping at worst, and always have special advantages at best. Okay but as a consumer, I just care that there's good internet available. If the government can provide that using "unfair" advantages, then why do I care?
- dariusj18 6y ago
  Won't someone think of the poor corporations?!
kevingadd 6y ago
What is the consumer harm inflicted by the government's option being the best one in the market, exactly?
908B64B197 6y ago
Something I've always wondered: Isn't municipal broadband mostly the last mile? It's the extremely capital intensive work of going from houses to houses rolling out fiber, maintaining a few local relays with equipment and fielding tech support requests. Wouldn't ISPs be happier just installing their hardware somewhere and reselling their capacity wholesale and outsourcing all that last mile work to the local towns?
- billh 6y ago
  Not from the perspective of an ISP. Doing this would transform broadband from a value added service to a commodity. In a commodity market, competition is stiff and this often drives profits down to an absolute minimum. The cushy profits they are currently enjoying would evaporate in short order as soon as anyone sensed that there was money to be made by drilling fiber and racking a switch in that colo.
coffeecat 6y ago
If private companies can't compete with the government-run enterprise, this implies that the government-run enterprise is more efficient. And if the government-run enterprise is more efficient, why exactly should the private competitors even exist?
- Redoubts 6y ago
  > this implies that the government-run enterprise is more efficient. it does not
- txdv 6y ago
  If it is not subsidized with tax money

kaibee 6y ago

> Government-run enterprises are not fair competition since they have unfair advantages. One does not create competition by allowing enterprises which can do dumping at worst, and always have special advantages at best. Okay but as a consumer, I just care that there's good internet available. If the government can provide that using "unfair" advantages, then why do I care?

dariusj18 6y ago
Won't someone think of the poor corporations?!

kevingadd 6y ago

What is the consumer harm inflicted by the government's option being the best one in the market, exactly?

908B64B197 6y ago

Something I've always wondered: Isn't municipal broadband mostly the last mile? It's the extremely capital intensive work of going from houses to houses rolling out fiber, maintaining a few local relays with equipment and fielding tech support requests. Wouldn't ISPs be happier just installing their hardware somewhere and reselling their capacity wholesale and outsourcing all that last mile work to the local towns?

billh 6y ago
Not from the perspective of an ISP. Doing this would transform broadband from a value added service to a commodity. In a commodity market, competition is stiff and this often drives profits down to an absolute minimum. The cushy profits they are currently enjoying would evaporate in short order as soon as anyone sensed that there was money to be made by drilling fiber and racking a switch in that colo.

coffeecat 6y ago

If private companies can't compete with the government-run enterprise, this implies that the government-run enterprise is more efficient. And if the government-run enterprise is more efficient, why exactly should the private competitors even exist?

Redoubts 6y ago
> this implies that the government-run enterprise is more efficient. it does not
txdv 6y ago
If it is not subsidized with tax money