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insomniac84

join:2002-01-03
Schererville, IN

reply to espaeth

Re: Hmm.....

said by espaeth:

Competition only works if the companies can actually make a profit at the end of the day.
Oh they easily make profits. The problem is they want unlimited growth of profits. So once an area is saturated, the only way to grow is to price gouge the customer you have. In duopolies where your competition has the same philosophy, you can raise your prices and they will match you. It's easy to collude when the competition shares your same wants and philosophies. Muni-broadband puts a cap on that really fast. As the goal is steady long term profits and not unlimited profit growth.

openbox9

join:2004-01-26
Alexandria, VA
kudos:2

said by insomniac84:

said by espaeth:

Competition only works if the companies can actually make a profit at the end of the day.
Oh they easily make profits.
I believe espaeth See Profile was referring to the CLECs making a profit, which is much more challenging if they actually have to provide a portion of the facilities to include remote terminals and the power to feed them.

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