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karlmarx

join:2006-09-18
iraq

reply to Alpine

Re: Can Someone Explain...

You make no sense. Regulation != competition. The reason the utilities are regulated, is because they are natural monopolies.

Lets look at broadband, and see WHY it's a natural monopoly.

#1: Barrier to entry. The cost of anyone NEW trying to enter the market is prohibitive. The existing telecom infrastrcture was paid for by the taxpayers. The existing cable infrastructure was paid for by the residents.

#2: No close substitutes. Umm, there is no substitute for broadband. Wifi, etc, are all limited, small deployements.

#3: Price maker. Umm, look at 'comcast', the so called 'bmw' of the internet. Overpriced for less service.

#4: Blocked Entry: Umm, telco's buying senators. nuff said.

Granted, the truth is we are a in a cartel a centralized institution is set up to partially coordinate the actions of several independent providers (which is a form of oligopoly). You have cable or DSL. Period.

However, By definition a monopoly allows exclusive sale or purchase of a product or service, however the control and exclusivity of a human need in the hands of another human is at its most dangerous when its basic availability is at stake - sooner or later the exclusivity is mishandled either intentionally or not. Slavery was clearly the ultimate result of monopoly. Look to your own future if we don't stop the megacorps NOW.
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