4 ms·
> a deregulated telecom industry will focus on the high-end consumers, just like every company does. It is not actually true that "every company" focuses on hi
by glenra 13y ago
> a deregulated telecom industry will focus on the high-end consumers, just like every company does.
It is not actually true that "every company" focuses on high-end, nor is it true that "that's where the money happens to be". There is at least as much money to be made by focusing on low-end consumers in most markets, at least when it's legal to do that. McDonald's and Burger King make more money than any high-end restaurant that charges $200/person; Walmart makes more money selling clothes than does Saks Fifth Avenue.
Those who want some service the most and are willing to pay for it often do get it first, but the masses generally get it soon after - and they get a BETTER PRODUCT - the bugs get worked out while serving the early adopters. The first silk stockings were made for the Queen of England, but within a generation similar stockings were affordable by the average working girl. The brilliance of the market is NOT in making more stuff for the queen - that is a very limited market opportunity - but in bringing costs down to serve the masses.
(I agree with some of the other stuff you wrote, just not the claim that companies inherently serve the rich first. Some do, some don't. And these sorts of regulatory restrictions almost invariably hurt the poor the most, as they have the most to gain from new options becoming available. Rich people can usually afford to opt out or buy their way out of the service level that poor people are stuck with - private schools, private security patrols, or in this case: buying your own satellite dish.)
- rayiner 13y agoThe big difference is that McDonalds and Wal-Mart take advantage of economics of scale to get the kind of extremely cheap prices that allow them to make money from serving lower-income customers. That state of affairs doesn't exist in utilities. It's far more expensive to serve a poor rural customer than a rich urban one.