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wahoospa

join:2006-03-23
Charleston, SC

Competition will not lower rates.

In my area we had Comcast for years. Then someone got the bright idea to let Knology in so the cable rates would be in competition and therefore go lower. Didn't work. All cable competition does is allow another company to enjoy part of the pie. Rates for both have gone only one way and that is up. 5 different cable companies could be serving one area and all will still have the same rates within a dollar of each other. Having competition isn't always as good an idea as it seems, you only get choices with whom you want to buy from.


DotMac4
Shill H8r
Premium
join:2007-10-26
Huntington Beach, CA

That is certainly the case here. Speeds have increased to 15Mb in my area from Time Warner vs FiOS, but Verizon has already taken a 12% increase on HSI rates and a similar increase with their video services.

And even when speeds increase, there isn't really a benefit as the providers just engage in traffic control measures like Comcast's nastygrams, cancellations and traffic shaping, Cox's monthly caps and Time Warner's traffic shaping.


jjeffeory

join:2002-12-04
USA

reply to wahoospa
Look up the word oligopoly. Look up duopoly. We're not really see free market competition, so the rules of economics aren't going to work.


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