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 ·Verizon FiOS
| reply to fAcEtIOUs
Re: More proff that we need competiton. said by fAcEtIOUs:And if that disparity in prices persists that will draw in competitors to the overpriced areas. not likely and unsupported by facts. I have been in a monopoly market, paying that extra $12/mo, for several years.
- the barrier to entry to the market is very high because the lack of line sharing means any new entrant must overbuild.
- Having to overbuild means deep pockets and likely little or no profit in the first few years of operation; note the current incumbents didn't have this issue because they were granted govt monopolies initially; also, any new entrant would be susceptible to being forced out of the market in short order by the incumbent underpricing service for just long enough to force the new entrant to go bankrupt or leave the market
- having to overbuild means it is EXTREMELY unlikely a market would get more than one new entrant, leaving a duopoly market, better than a monopoly, but not much.
the U.S. broadband market is not competitive and is unlikely to become competitive in the near future. at the current time the govt has no stomach for taking the steps required to create a competitive market.
the broadband stimulus plan will likely be a colossal failure and a huge waste of money. |
