 elray join:2000-12-16 Santa Monica, CA | reply to CXM_Splicer
Re: Not entirely wrong There is nothing wrong with exclusivity agreements.
For the past decade, as we've read here the daily whines of those "un[der]served", MDU has been a way to get broadband when you otherwise are destined for dialup forever. Historically, its also meant a much broader pay-tv lineup for about half the rack rate. Its a feature of multifamily dwellings; you make the choice when you move in, or not.
NYC has over two million apartments. If you're unhappy where you live, because it has only copper, why not move to greener pastures? |
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 CXM_SplicerLooking at the bigger picturePremium join:2011-08-11 NYC kudos:1 Reviews:
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| There is nothing wrong with exclusivity agreements as long as they are with the affected parties. If a provider wants exclusivity, they should make an agreement with the SUBSCRIBER that they will get a discount if they agree to not sign with a competitor for a certain amount of time.
A contract with a third party to limit availability of service to a group of people should be illegal. Suppose for a second that your employer signs an exclusivity agreement with Bank XYZ that all the employees have to bank there and your employer gets a better rate. You now have to move all your accounts there, savings, checking, mortgage, retirement, etc. Don't want to do it?? Find another job. Does that seem legit to you? |
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 | reply to elray There are many things wrong with exclusivity agreements.
The biggest 3: 1.) It limits consumer choice 2.) It raises the cost to consumers 3.) Removes the incentive for the companies to compete for your business thus lowering quality of service and improvements. |
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 elray join:2000-12-16 Santa Monica, CA | reply to CXM_Splicer said by CXM_Splicer:There is nothing wrong with exclusivity agreements as long as they are with the affected parties. If a provider wants exclusivity, they should make an agreement with the SUBSCRIBER that they will get a discount if they agree to not sign with a competitor for a certain amount of time. Nope. Exclusivity agreements are bulk purchases - volume discounts. They only work if all tenants are subscribed. Once you sever the exclusivity, the price goes back to retail. Or worse - without the right to exclusivity, the un[der]served have no way to capitalize a group broadband installation.
If you don't like the rental agreement terms, move on to a friendlier address. Why is that so hard? |
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 CXM_SplicerLooking at the bigger picturePremium join:2011-08-11 NYC kudos:1 Reviews:
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| I explained why in the banking analogy which you must have missed. So if you don't like your employer deciding where you bank, just find a friendlier boss? Sorry, wrong.
The exclusivity contracts being discussed have nothing to do with rental agreements. In this case landlords are being paid to perform the anti-competitive actions of a third party. There is no doubt that they are wrong, I would question why they are legal at all. The agreement you are talking about is when tenants agree to exclusivity which is fine... exactly like I said. |
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 elray join:2000-12-16 Santa Monica, CA | said by CXM_Splicer:I explained why in the banking analogy which you must have missed. So if you don't like your employer deciding where you bank, just find a friendlier boss? Sorry, wrong.
The exclusivity contracts being discussed have nothing to do with rental agreements. In this case landlords are being paid to perform the anti-competitive actions of a third party. There is no doubt that they are wrong, I would question why they are legal at all. The agreement you are talking about is when tenants agree to exclusivity which is fine... exactly like I said. I refrained from commenting on your banking analogy because the kindest thing I could say is ... it doesn't apply.
When you rent in a common dwelling or own a condo, you are subject to certain common rules and elements. That pertains, as well, to wired facilities that traverse common areas of the building. The tenant doesn't own the conduits or control them. In a condominium complex, if you want to vote as a group for or against exclusive contracts, that's your right. But not in a rental.
The last HOA I worked with (no, I'm not a fan) with a headend system landed basic cable (or what we used to call basic cable, before it was downsized) for $11/door (not drop), where the retail rate was running nearly $50/month. Dish MDU contracts avail similar discounts - but only when you do the entire building.
The landlord's actions are not anti-competitive. In fact, they're very competitive - as you are free to choose to rent in another building that offers the services you seek. |
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 CXM_SplicerLooking at the bigger picturePremium join:2011-08-11 NYC kudos:1 Reviews:
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| The last HOA I worked with (no, I'm not a fan) with a headend system landed basic cable (or what we used to call basic cable, before it was downsized) for $11/door (not drop), where the retail rate was running nearly $50/month. Dish MDU contracts avail similar discounts - but only when you do the entire building.
So you are saying the HOA never consulted the tenants before making this deal? Most of the HOA's that I know of (and I live in a condo now) are made up of tenants and would have an open meeting where a vote would be called. |
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 elray join:2000-12-16 Santa Monica, CA | said by CXM_Splicer:The last HOA I worked with (no, I'm not a fan) with a headend system landed basic cable (or what we used to call basic cable, before it was downsized) for $11/door (not drop), where the retail rate was running nearly $50/month. Dish MDU contracts avail similar discounts - but only when you do the entire building.
So you are saying the HOA never consulted the tenants before making this deal? Most of the HOA's that I know of (and I live in a condo now) are made up of tenants and would have an open meeting where a vote would be called. No, I didn't say that. You did. Of course HOA members have the right to attend board meetings and voice their objections or approval - none did in this case, though I would expect them to do so over other matters (exorbitant landscaping, the joys of plumbing, club rooms, tennis rules, parking enforcement, and of course, color schemes. Ugh. Not for me.)
What I said was that the HOA achieved a massive discount on service, by committing all of its members to the contract in common.
A landlord can benefit his tenants the same way, if he sees fit. But it is his call, not theirs individually. They can petition and negotiate, and/or leave, but it is not their decision. |
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 CXM_SplicerLooking at the bigger picturePremium join:2011-08-11 NYC kudos:1 Reviews:
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| No, I didn't say that. You did. Of course HOA members have the right to attend board meetings and voice their objections or approval
That is exactly why your post does not apply... the situation is closer to the banking analogy where they have no choice in the matter and receive no benefit from the deal.
The buildings where landlords have signed exclusivity contracts are still paying the same rate. The only one achieving any benefit is the landlord who will receive free service, kickbacks, or some other benefit. The tenants bills can go UP since they have no option to switch to... anti-competitive and wrong. Call it extortion if you don't like the term anti-competitive. |
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 | So true CXM. The only ones getting the benefits are the Landlords and the superintendents or porters that usually live in the Building and nobody else. Also most HOA tend to side with the Landlords when it comes to new utilities too which is sad . My friend in NJ has fios all 360 degrees around her place and her Hoa voted 10-2 to not sign a deal with Verizon until they agree to the demands of the Landlord(aka kickbacks) |
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 elray join:2000-12-16 Santa Monica, CA | reply to CXM_Splicer The tenants have the option to move to another address. |
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 CXM_SplicerLooking at the bigger picturePremium join:2011-08-11 NYC kudos:1 | That is a false choice. There are laws set up to protect tenants from many false choices that landlords may try to impose. Baring landlords from receiving compensation to limit tenants' choices should be added. |
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 | I agree with you and here in the Bronx some landlord want to charge and extra fee for people having and AC(mind you the electricity you pay it yourself since most landlords don't include utilities with your rent....I only heard of this practice in my home state of Massachusetts). I remember my old buildings management corp sending letter to the tenants saying they have to pay 25 dollars more in their rent because of the increase in their electricity bill. Some of the tenants took then to court for that and won and what do you think the management corp did? Change the wording from "electricity increase" to "window frame protection cost" You got to love this leeches trying to dupe the tenant anyway they can. |
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 CXM_SplicerLooking at the bigger picturePremium join:2011-08-11 NYC kudos:1 | Yeah, it is definitely sad. It is also sad that people come out and try and defend this greed as 'good'. |
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 | The only way people would defend those kind of actions are those that gain anything from it, but since we all know that 90% of the people in here aren't going to get any yet still defend this action is the saddest part. |
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 elray join:2000-12-16 Santa Monica, CA | reply to CXM_Splicer said by CXM_Splicer:Yeah, it is definitely sad. It is also sad that people come out and try and defend this greed as 'good'. Ok, I'll bite. Greed is good. It motivates production and competition, which results in surplus and lower prices.
In the case of the landlord, his exclusive contract can avail services that tenants might otherwise not get, at a lower cost/door than they could achieve on their own.
If the landlord isn't allowing the desired service, another "greedy" landlord will be motivated to acquire the tenant by offering it. |
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 | Ok then i will counter your point.
Greed is not good when just one person inherits the wealth. Look when the landlord allows some company is that say company needs to recoup the investment which mean you are paying for it regardless. which in turn is not good for the tenant only for the Owner or management company. I do agree we need competition but not when it comes out of the customers pocket when there was never a need to do so in the first place. |
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 CXM_SplicerLooking at the bigger picturePremium join:2011-08-11 NYC kudos:1 Reviews:
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| reply to elray I guess it all depends on your definition of greed. I would say that need is the thing which motivates production and greed is the obsession with obtaining more than one needs. Now, this will obviously just shift the discussion to 'how much does a person need' and that is an extremely subjective question but it is more proper to look at it in those terms.
Neither the service provider nor the landlord needs to limit the services to the tenant. The landlord didn't have some need added by a new service being made available. This goes beyond need into greed and it is at the expense of competition (which is a need for capitalism to function properly). |
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 elray join:2000-12-16 Santa Monica, CA | reply to Eddy120876 Greed does not mean "one person inherits the wealth". The wealth is created by the greedy person, not inherited.
But it is not an obsession, except perhaps from envious eyes. It is just the term we use to describe the motivation to produce, as you say, "more than one needs". Have you considered what things would cost, and what the world would be like, if the "greedy" people only produced enough for themselves? |
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 CXM_SplicerLooking at the bigger picturePremium join:2011-08-11 NYC kudos:1 Reviews:
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| Wealth is created by labor and siphoned off by the wealthy. The point of producing more than one needs is to trade for the things you need that you don't produce. If you want to produce everything you need you are going to have to live like a caveman.
Do you think there is even such a thing as an obsession with money? Something that would be considered 'bad'? |
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