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Why would fiber to the house be a natural monopoly?
by slopinthebag 4mo ago
Why would fiber to the house be a natural monopoly?
- andriamanitra 4mo agoBecause the fixed cost of deploying infrastructure (digging the fiber to the house) is extremely expensive compared to the marginal cost (of serving data over an already installed fiber). 20 different companies all digging their own fibers to the same house would be tremendously wasteful. https://en.wikipedia.org/wiki/Natural_monopoly https://en.wikipedia.org/wiki/Natural_monopoly
- slopinthebag 4mo agoBut you wouldn’t get 20 different fibres, just one sold to 19 different companies.
- inemesitaffia 4mo agoOverbuilding makes no financial sense for companies
- Hikikomori 4mo agoWhy would roads to your house be a natural monopoly?