Linked by Thom Holwerda on Wed 1st Jun 2011 22:38 UTC
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RE[2]: Do we really need regulation?
by Berend de Boer on Wed 1st Jun 2011 23:45
in reply to "RE: Do we really need regulation?"
RE[3]: Do we really need regulation?
by Lennie on Wed 1st Jun 2011 23:53
in reply to "RE[2]: Do we really need regulation?"
RE[3]: Do we really need regulation?
by Neolander on Thu 2nd Jun 2011 07:33
in reply to "RE[2]: Do we really need regulation?"
But why are there only a few?
Because they were there first and it would be very hard for a new actor to catch up, and because the radio spectrum is a limited resource. Mobile operators own their infrastructure, in pure following of the free market philosophy, and strangely they tend to be shy about sharing it unconditionally with new actors if the government doesn't come into play.
And why won't there be a 4th one very quickly?
Describe us a plan for introducing a full-blown mobile network very quickly.
In France, we're currently trying to introduce a fourth one. It started one year ago, and early service (= only works on big cities, or through another carrier's network) should be available next year if everything goes well.
Before the project was even approved, the existing operators have done every piece of lobbying they can to kill the project. The new actor couldn't afford paying the full price for an equivalent of share of the GSM spectrum to the one which other actors had, as an example. It offered to pay in several chunks. Through intense lobbying and legal manipulation, the proposition has been rejected.
Then the government has suggested that the new actor could only receive on third of its initially planned piece of the GSM spectrum, which would effectively impair its development as soon as it starts to get lots of customers, while historical operators get two thirds of it. Well, it's better than nothing right ? But no. The three historical operators have tried, through more lobbying, to argue that having the new operator pay one third of the price was unfair competition. Thankfully, at this point, European institutions have come and enforced this solution.
Free market doesn't work well with limited resources. It's just a matter of fact.





Member since:
2008-10-26
The argument for regulation here is that there are few enough (mobile) ISPs that simply switching to a better one is not an option because they will all charge extra for VOIP (or whatever other type of traffic).
EDIT: ... and Thom said the same thing while I was writing my comment.
Edited 2011-06-01 23:42 UTC