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But if you build something people really need, you get classified as a utility This is misleading oversimpliication. The issue is the viability of competition,
by 001sky 13y ago
But if you build something people really need, you get classified as a utility
This is misleading oversimpliication. The issue is the viability of competition, not really the "need" of the consumer. In the case of cable/telcos, competition is precluded by a variety of non-market barriers. These barriers create problems for functioning markets to capitalize competing entities, regardless of availability of capital, technology, or managemnet skill. So, in a sense the government is responsible for the "mess" of limited cable and telco competition. And they are (as a result) on the hook to limit the damage of their anti-competitive public policy. The logic of limiting competition is some variation on the theme of "natural monopolies"; this is the origin of "utility status". In other words, it is almost strictly speaking a supply side issue and a government policy issue. The levele of demand is really only a second-order part of the equation; although internect acesss is being blurred in a sense of becoming a <perceived> public good (like infrastructre). But in a certain sense, it is not really a public good. The latter are typical removed from the market altogether. ie, Roads are for the most part free. Telephone and cable service, have not really been treated this way. What is sort of different is that the Internet has been priced more like a road thank like cable service. The cable companies are of the view they are "entitled" to price it like a cable service because their strategy is to monopolize access and to extract rents from their "entitlements". The public interest, from a cultural and economic perspective, therefore of what goes over the pipes can be sepertated from the pipes themselves. The pipes should and could be treated like "servicies" for which people pay. But the cable companies could and most likely should be denied and access to the data and the economics that flow down the pipes. The government could legislate the cable companies asset value to zero, if they need to. They could pass legislation to destroy copyright's perpetuity value {etc}. There is plenty of leverage to bring the cable companies to bear to a public interest position. At least technically. In reality, we know who is already in the pocket of the cable companies though +D.