Why are internet providers allowed to monopolize areas?

[zerocool84]

Seems some people are forgetting that some cities fairly recently tried to make their own low cost ISP and companies like Time Warner and Charter blocked it.

 

[mmntech]

There's a few indie ISPs up in Canada but they're all forced to use the big telcos' lines. Which means you get unlimited data but are stuck with the same low speeds for the same high price. The government does, however, force Bell and Rogers to allow indie ISPs to rent these lines. The government does regulate it quite a bit, but the CRTC (our version of the FCC) basically works in the big telcos favour most of the time. Which has limited competition.

Poor quality internet service that's outdated and expensive is not good for a national economy. Especially when competing with other nations that are offering a better service. Nationalizing it doesn't work because far too often, any nationalized service becomes just as big a cash cow for the government. Rates start out low at first but skyrocket in as time goes on. So you're really back to square one. We also know governments can't be trusted not to poke their nose into private communications.

The key is deregulating it so independent players have less red tape getting into the market. While at the same time using consumer protection and anti-trust laws to limit big telcos' ability to buy out smaller players and monopolize the industry.

 

[Engineer]

Seems some people are forgetting that some cities fairly recently tried to make their own low cost ISP and companies like Time Warner and Charter blocked it.

That's exactly what I'm talking about. Stifle competition with a few (relatively) lobby bucks instead of spending real money and compete.

 

[soulcougher73]

Lobbying

 

[BarkingGhostar]

"Internet providers" aren't allowed to monopolize markets. Cablecos and Telcos are. The justification way back when had something to do with the amount of infrastructure involved. Similar to power companies. Falls under the "utility" category, I guess.

This needs a little clarification. First, the FCC and the rest of the federal government put down the lines on which telco can operate where and how. As for the cableco the Feds decided they didn't need another headache and pushed the regulatory administration down to the states, who in turn dumped it onto your local county governments.

It is in the county jurisdiction that the cable franchise operator, a county official, that decides all things cableco in your county. This can include overlapping (and competing) cable operators, what the cable company must provide free as a public service (e.g. free TV to public schools, etc.), how long the contract (with the county) lasts for, etc.

Do not mistake an infrastructure provider with it's ISP division. They are regulated differently, and by different regulating bodies. I think the OP mean access providers. But I would suggest anyone start a grass roots campaign against or with their county franchise agent to make the next contract better for the residents in said county.

As for the telcos, this is something that can be presented in complaint form to your local Public Service Commission, or the Public Utility Commission. But it is a dog eat dog world for consumers in a lot of areas. For instance, AT&T can provide me with only 1.5Mbps internet access service compared to the [only] cable operator's 24 Mbps service.

So even in the light of competition (in terms of operators) it can be meaningless. And I'm in one of Atlanta's most populated counties. It is a simple story of AT&T not caring. They aren't doing anything illegal in my case, but they are not competing in any way shape or form.

 

[Ichinisan]

Since your service wasn't yet active, there was no account for the rep to put notes on.

Anyway, it usually wouldn't be profitable for MSOs to build/expand in an area unless they're the first one in. Why should they be forced to spend money to expand into an area where they will never recoup their expenses?

 

[sdifox]

cuz you live in the land of the free :biggrin: