Hacker News new | ask | show | jobs
by scarface_74 802 days ago
The only reason utilities are regulated are because they are natural monopoly. It doesn’t make sense to have more than one utility company with right of way to dig up streets to create the needed infrastructure.

To an extent, cellular is a natural oligopoly. Each carrier needs enough spectrum to have decent service. But it isn’t a monopoly.

3 comments

> To an extent, cellular is a natural oligopoly. Each carrier needs enough spectrum to have decent service. But it isn’t a monopoly.

It's a natural monopoly in exactly the same way any other utility is. "It doesn't make sense to have more than one utility build towers everywhere to create the needed infrastructure." In theory if only one company did it you would only need one set of towers and costs would be lower. But a private monopoly doesn't exactly optimize costs either, and some utilities cost more to duplicate than others. It's much more expensive to have redundant roads than redundant cables running along the same set of utility poles or in the same cable trench, and cell towers are on that end of the range.

The spectrum is a red herring. You could operate live auctions to bid on spectrum in real time in areas of scarcity instead of allocating it permanently to particular companies. This would also give companies the incentive to operate more towers at lower power levels, because you'd only need to bid on spectrum in the same collision domain and lower power levels would cause that to be smaller areas with less contention, lowering their spectrum costs.

Do you realize how complicated that would make both the phones and leaving an area? Besides, even today some phones only operate over certain parts of the spectrum and some parts of the spectrum aren’t even conducive to transmitting through walls - the issue T-Mobile had for years.

And what problem are you trying to solve again?

The only reason why anything is regulated is because society decided that the consequences of not regulating it produce undesirable outcomes for too many people in said society.

This is decidedly the case with ISPs today, so arguments over the pedantic definition of monopolies and whether it applies here are rather irrelevant.

We are talking about mobilr providers. Are you really saying there is no competition?

What do you hope to gain by regulation?

Agriculture isn't a natural monopoly either, but that doesn't mean we shouldn't have food safety standards.
Yes because something that will literally kill you if there aren’t standards is analogous to net neutrality.

But even if it were, it’s #199542 why HN commenters don’t understand what a “monopoly” is and why utilities that require physical infrastructure which are natural monopolies aren’t the same as cellular where there are three healthy competitors.