dslreports logo
site
 
    All Forums Hot Topics Gallery
spc

spacer




how-to block ads


Search Topic:
uniqs
37
share rss forum feed


NormanS
I gave her time to steal my mind away
Premium,MVM
join:2001-02-14
San Jose, CA
kudos:11
Reviews:
·SONIC.NET
·Pacific Bell - SBC

1 recommendation

reply to tshirt

Re: bad link Karl

said by tshirt:

I doubt there is a monopoly, just no other company has chosen to serve your area.

If by, "monopoly" we mean a company using predatory pricing to drive the competition out of business, AT&T and Comcast are not monopolies.

But wireline services tend to be "natural" monopolies, in that once an incumbent has built out an area, any competitor faces the same cost to overbuild, but has to try to convince the incumbent's customers to change. The Pacific Telesis Group tried to overbuild TCI, here. Wound up in dire financial straits, such that SBC, nee Southwestern Bell Telephone, bought them and sold off the cable infrastructure to AT&T Broadband Internet. Neither Pacific Bell, nor AT&T actually signed up cable customers. In the end, AT&T spun off ATTBI, and both TCI and ATTBI were bought by Comcast. So we have a duopoly (SBC, dba AT&T and Comcast); except for some rare cases where true competition exists.
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum


tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
·Comcast

1 recommendation

said by NormanS:

said by tshirt:

I doubt there is a monopoly, just no other company has chosen to serve your area.

But wireline services tend to be "natural" monopolies, in that once an incumbent has built out an area, any competitor faces the same cost to overbuild, ...

Ahh so you get it.
The cost of a single plant is incredible and takes many years to pay off.
building/overbuilding a second plant means splitting the customers and so the provider needs to charge twice as much (assuming a 50/50 split) to yield the same return on that same huge sunk cost. and being smaller hurts the negationing power with content producers increasing that expense too.

So customers don't necessarily benefit from multiple plants.
and the dumb pipe model people here promote of forcing a single plant to carry multiple competing services without rewarding the investor who paid for the original build, assures that new funding for upgrades will not happen meaning users will get stuck with old school technology and little reduction in price.


NormanS
I gave her time to steal my mind away
Premium,MVM
join:2001-02-14
San Jose, CA
kudos:11
Reviews:
·SONIC.NET
·Pacific Bell - SBC

said by tshirt:

Ahh so you get it.

Maybe. If cable were regulated by the state PUCs, it would be closer to the "natural monopoly" envisioned by the telco regulators. But cable goes beyond providing TCP/IP connectivity, and is a content delivery conduit for the entertainment industry. I don't want Hollywood crap; a decent TCP/IP connection will suffice. It can't possibly cost Comcast so much to distribute TCP/IP over the Last Mile as to justify the $44.99 price tag for "Performance"; my DSL provider throws in telephone with Internet for that price!
--
Norman
~Oh Lord, why have you come
~To Konnyu, with the Lion and the Drum


tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
·Comcast

1 recommendation

Sure it's a bit more expensive than the Telco, the plant is relatively new, and was built without the gov't subsidy.
It is however far more capable (bandwidth wise) in return.
that makes it not always affordable to everyone, and yes as the CATV broadcast side phases out the HSI side has and will become more expensive as well as maybe the phone (even though it seem expensive compared to straight/third party VoIP, it still can undercut POTS with NEAR similar qualities and reliability.)
for the Hollywood/entertainment side, the model is changing but will move slowly until there is a proven replacement capable of replacing at least as much revenue as they currently get/forecast.

The idea that you will get the same product MUCH cheaper just because it's delivered IP rather than broadcast is wrong (it's actually much more expensive to deliver.
in true ala carte really popular stuff but expensive to make stuff (lobster) will be VERY expensive, and cheap to produce products (floor sweepings and mystery "meats") will be less plus the delivery cost. The very expensive maybe a better value to those that can pay for it, as a lower % of the total is delivery.
Unfortunately nothing will be really cheap.