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.