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by cbd1984
4110 days ago
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Cable and fiber ISPs as they exist now, with the same company owning the wires and providing the service, are inevitably going to be natural monopolies, because of the massive start-up costs of entering the market combined with the trivial (near-zero) costs to the incumbent ISPs to add one more customer. In that case, new companies have to lay new cables and provision new data centers and hire new people, whereas TWC only has to ship out a cable modem and allow access to pre-existing capacity. One way around this would be to force TWC and Comcast and so on to divest themselves of the physical infrastructure up to their in-plant demarcation points, spin off new natural monopolies to only own the cables, and force those new companies to lease to all comers at the same low rate, with a managed X% profit spelled out in regulations. That way, an upstart would only have to provision new data centers and hire new people; that's still more than Comcast has to do, but it's a lot less than the current state of affairs. This is related to Net Neutrality, in that the neutrality rules are more urgently needed as long as ISPs have unshakeable monopolies on a regional basis, but even if competition were more robust it would still make sense to ensure no ISP could become that predatory. |
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Three providers would be unthinkable for a true natural monopoly, like roads or water.