Lack of Competition Holds Back U.S. Broadband
Linked by Howard Fosdick on Thu 24th Jan 2013 10:12 UTC
Internet & Networking In the past, OS News has discussed how U.S. broadband access lags many other countries in terms of cost, speed, and availability. Now, this detailed report from the New America Foundation tells why. It all comes down to a lack of competition among the carriers, which can be traced back to the days when cable companies were granted local monopolies. The report argues that "...data caps... are hardly a necessity. Rather, they are motivated by a desire to further increase revenues from existing subscribers and protect legacy services such as cable television from competing Internet services." The report's conclusion: don't expect improvements without legislative action.
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What a surprise
by bile on Thu 24th Jan 2013 12:34 UTC
bile
Member since:
2005-07-08

"It all comes down to a lack of competition among the carriers, which can be traced back to the days when cable companies were granted local monopolies."

So using force to grant artificial monopolies to firms externalizes costs and leads to fewer, larger, less agile, less interested in customer demand firms?

Who would have thought?

Reply Score: 12

RE: What a surprise
by judgen on Fri 25th Jan 2013 08:45 in reply to "What a surprise"
judgen Member since:
2006-07-12

It was indeed the government action in the US that caused the quasi monopoly. But the correct action of the government would indeed be legislative and to dismantle all the boons that those companies have had over the years and let the market forces decide who is the better provider. It worked in northern Europe where the state owned almost everything telecommunicative in the past. (TV, Telephone, Radio, and so on)

Reply Parent Score: 5