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You're making a very common mistake here. If the barrier to entry in a new market is prohibitively expensive then there is no free market, just a de facto monop
by Locke1689 17y ago
You're making a very common mistake here. If the barrier to entry in a new market is prohibitively expensive then there is no free market, just a de facto monopoly. By having the local government own the infrastructure and then lease the lines to ISPs who provide actual service, you get competitive rates in service while anyone and everyone can use the common lines.
- dantheman 17y agoI think there might be a slight miscommunication on time scales. I don't believe that any monopoly, except those granted by the government, can maintain its status as a monopoly forever. I believe that in 10 - 15 years the monopoly will lose its grip on the market. It may still be a major player, but it won't be calling the shots. So there is a barrier to entry, eventually someone will enter the market; unless of course the monopoly is losing money or was subsidized by some other entity in which case those using it are getting a good deal -- it cost more than they spent.