| Standard Government Intrusion Result Whenever the Government intrudes into the market it causes higher prices, reduces quality, diminishes competition and stifles innovation. The existence of the FCC is the cause of all the problems listed in the article.
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| said by I Use Dial:Whenever the Government intrudes into the market it causes higher prices, reduces quality, diminishes competition and stifles innovation. The existence of the FCC is the cause of all the problems listed in the article. Do explain. |
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| reply to I Use Dial
Seriously? The FCC has caused wireless companies to require the cost of text messages to go up in tandem from $.05 to $.30? Please explain. I believe the FCC has no regulations regarding text messages. |
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| reply to Necronomikro
Do we have problems with the quality, price, availability, variety or number of competitors for bread? No, because anyone with an oven can start a bakery and any store can distribute and sell it. The state mandated monopoly created by the FCC is what causes the problems listed in the article.
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| reply to delltechkid
The FCC limits the number of competitors. When this happens prices will go up. Since the barrier to entry is artificially high and the number of competitors artificially limited, there is no reason for the firms to not increase prices.
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Reviews:
 ·Verizon FiOS
| reply to I Use Dial
said by I Use Dial:Whenever the Government intrudes into the market it causes higher prices, reduces quality, diminishes competition and stifles innovation. The existence of the FCC is the cause of all the problems listed in the article. links to back up your claim please - otherwise, you just offering your opinion, and we know what they say about that. |
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Reviews:
·Verizon FiOS
| reply to I Use Dial
said by I Use Dial:Do we have problems with the quality, price, availability, variety or number of competitors for bread? No, because anyone with an oven can start a bakery and any store can distribute and sell it. .. bad analogy.
bread ovens aren't a scarce resource owned by the public and licensed by the FCC |
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Reviews:
·Verizon FiOS
| reply to I Use Dial
said by I Use Dial:The FCC limits the number of competitors. When this happens prices will go up. Since the barrier to entry is artificially high and the number of competitors artificially limited, there is no reason for the firms to not increase prices. No, the FCC has open bids for spectrum. because of the power and size of the current incumbents, the same group of companies always wins the bids for spectrum. That's what limits the number of competitors. sometimes the incumbents buy spectrum for the sole purpose of keeping it from a competitor.
there is lots of competition in the open spectrum space - wireless routers, cordless phones, etc. because anyone can offer a product as long as it doesn't interfere.
do you think of this crap yourself, or are you reading it somewhere? |
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| reply to nasadude
Yes! You understand it perfectly! The existence of the FCC causes prices to be higher because they mandated a monopoly.
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Time... beckoning me. |
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Reviews:
 ·Charter
 ·Clearwire Wireless
| reply to nasadude
It's the same thing as limiting one cable company and one dsl company to an area.
What he's saying is the truth. It's forced monopolies/doupolies, although you can't blame the fcc itself for them, you can blame the lobbyist and politicians who take bribes in the fcc... |
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patcat88
join:2002-04-05
Jamaica, NY
kudos:1 | reply to I Use Dial
said by I Use Dial:Whenever the Government intrudes into the market it causes higher prices, reduces quality, diminishes competition and stifles innovation. The existence of the FCC is the cause of all the problems listed in the article. So do you support elimination of the FCC and making all spectrum free for all to use? |
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Reviews:
·Verizon FiOS
| reply to Metatron2008
said by Metatron2008:It's the same thing as limiting one cable company and one dsl company to an area. What he's saying is the truth. It's forced monopolies/doupolies, although you can't blame the fcc itself for them, you can blame the lobbyist and politicians who take bribes in the fcc... who is limiting to one cable company and one dsl company in an area? It's not the FCC.
there is one cableco and one telco in each area because that's what the companies agree on - they have divided up into geographic regions and don't compete against each other.
part of this has to do with the original monopoly grants because access to public rights of way were required. the 1996 telecom act was supposed to fix this and it worked for dial up, but was never enforced for broadband and the incumbents just ignored the law and paid the fines when they got caught. Now the FCC just pretends there is competition and has done away with almost all line sharing and said no line sharing for fiber. As you say, FCC and gov at the time were (and probably still are) wholly owned subsidiaries of the telecom industry.
then you got Brand X, where SC said cable didn't have to share their lines and voila! instant cable broadband monopolies.
so yeah, FCC and congress aren't doing their jobs for consumers, but nobody is "forcing" monopolies/duopolies except the companies themselves. |
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| reply to I Use Dial
said by I Use Dial:Whenever the Government intrudes into the market it causes higher prices, reduces quality, diminishes competition and stifles innovation. The existence of the FCC is the cause of all the problems listed in the article. You may be correct, but what does one do with a run-away market? Just let it abuse its customers? And, no, the customers are captive. They're not going to just give up a necessary service. |
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| reply to I Use Dial
Also, the barrier to entry is now to great for anyone but the most wealthy. |
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| reply to I Use Dial
said by I Use Dial:Do we have problems with the quality, price, availability, variety or number of competitors for bread? No, because anyone with an oven can start a bakery and any store can distribute and sell it. The state mandated monopoly created by the FCC is what causes the problems listed in the article. If we're talking about wireless, then that is what the FCC does - there is only so much bandwidth, and the FCC makes sure that providers don't interrupt each others' service.
If you've ever picked up a CB radio during its heyday, you should know what effect deregulation would have. |
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Reviews:
·RoadRunner Cable
 ·AT&T Midwest
 ·voip.ms
·MyPhoneCompany
| reply to nasadude
said by nasadude:so yeah, FCC and congress aren't doing their jobs for consumers, but nobody is "forcing" monopolies/duopolies except the companies themselves. Concur. There are firefighters at every fire, but does that mean firefighters cause fires?
Limitations on competition are:
1. High barriers to entry: Cost of spectrum, infrastructure.
2. Front-end hooks (subsidized phones) draw the unsuspecting into the noose. The price to switch is too high.
3. Network effect: Somebody using an iPhone app cannot find any equivalent for Blackberry et al. So they are stuck with AT&T.
Any time there is a limited resource, concentration of capital, and high barriers to entry, the incumbent operator tends to have the power. Customers have none. Regulation by legislators or the administrative branch will be fought by the incumbent's lobbyists.
Incumbents, beholden to investors, must do everything they can to maximize profits. Little changes due to the outsized and ultimately corrupting influence of incumbent lobbying.
Eventually, if the right prosecutor comes along at just the right time in the election cycle, a suit might sneak through that brings about real change.
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