Quote:Phone companies are limited to a specific region, just like power companies you can't pick BellSouth as your home phone provider if your area is managed by ATT. That's because regulation requires only one provider for the phone companies and in most areas power companies as well. I don't see how regulation changed the amount of people in control of the phone lines nor how it would change the amount of people or companies in control of the internet?

 

That would depend on the regulation.

 

However, the issue that causes a lack of competition in broadband isn't regulation, it's a combination of multiple things.

 

First there's the required capital outlay, building out a wired broadband infrastructure is expensive. It's the kind of undertaking only assumed by governmental powers or large corporations, and in the cases of large corporations they usually demand contractual arrangements with public utility boards that they don't face any competition.

 

Second there's the first mover problem. Overbuilding (which is the term for a redundant wired broadband network being laid) makes a recouping of capital investment very difficult because not only do you have to pay to build out, but you also have to figure out how to take customers away from the incumbent, and as standard oil taught the nation 100+ years ago, when you have a powerful incumbent it's not hard for them to kill off a small new competitor through various means. Predatory pricing, contract agreements, and sabotage in the field to name three.

 

Third there are the efforts of right-wing politicians. Quite literally in some states laws have been passed by republicans that make it impossible for local municipalities to build their own broadband infrastructure to compete with, or operate in lieu of, the large incumbent providers. So even if Comcast or AT&T don't want to offer some areas broadband, those areas can't even, through their own government, build out a network to allow for it in their area.

 

Any other questions?

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