Why are internet providers allowed to monopolize areas?

[AznAnarchy99]

A Time Warner rep basically lied to my face. I told the guy when I was signing up that I need to be able to do my own installation for my internet since I can't get a day off to stay at home and open the door for a tech otherwise I wasn't going to sign up. My house was recently rewired by Time Warner because I had service with them before. Guy said all was good, I could do my own installation and he'll make a note on my account and I had 5 days to call in and activate.

My modem came in and I called in to activate and the new rep said that it isn't possible and that a tech needs to come and open the line physically on the street. They basically said they have no record of the conversation and that there was no note. It was either cancel or have the tech come.

Really. There wasn't much I could do at this point. Already bought the modem and there are only two providers per area which is basically DSL or cable and none of the phone lines are setup here.

/rant

 

[JimmiG]

I had the opposite problem when choosing which ISP to use over my open fiber line. Probably had about 12-15 ISP's to choose between. Ended up picking one that offered 100Mb for cheap, no caps and a privacy guarantee.

 

[Markbnj]

"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.

 

[KlokWyze]

"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.

But it seems like they have monopolies on neighborhoods. I've NEVER had a choice of ISP in the past 3 apartments and my current house. I live in a pretty good sized metropolitan suburb.

 

[ImpulsE69]

But it seems like they have monopolies on neighborhoods. I've NEVER had a choice of ISP in the past 3 apartments and my current house. I live in a pretty good sized metropolitan suburb.

You are missing the point. Most telcos and cable providers ARE the ISPs. This is why they appear to have a monopoly. They already have the infrastructure for it.

Anyone can start an ISP though if you have the money and backing.

 

[Colt45]

This is what happens when business owns the state.

 

[Vaux]

So here is a story for ya. About 7 years ago my city council of a suburb of about 8-9 thousand people decided it wanted fiber optic internet. City council approached the local telco's (Charter and TDS) about installing it. They said no. So my city council decided to build it's own - the town voted on it and it passed with a pretty high majority yes vote. So the city went ahead with plans to install it's own fiber to the home network. Advertises how much cheaper and faster it will be. So just as they are about to begin installation, TDS hits the city with a lawsuit. TDS challenges the legality of a city entering the business and a bunch of other legal stuff. I remember some debate on if internet service should be considered a utilty or not too I think. So anyways, the city now has to stop installation during the lawsuit, which lasted 8 months. What was TDS doing during this time? You guessed it, building it's own fiber network and trying to get as many customers to contracts as it can. Charter starts doing the same. TDS decides to drop the lawsuit. Now the city is stuck because it already purchased the bonds to finance it, so they go ahead with the installation too.

Now my city has 3 fiber networks to choose from. The city really tried to act in good faith and move ahead in technology and give it's residents something they wanted. I signed up with the city and I am going to stick with them. TDS and Charter basically teamed up and very aggressively are doing everything they can to undermine the city, and they have been successful. I am sick of them coming to my door and trying to sign me up.The city has had not as many subscribers as it needs and has lost millions in this venture so far. Internet and cable in my town are pretty cheap though, I get 30mbs up and down and telephone service with a couple of addons, for under 50 a month. The city is staying afloat with it but it sure is frustrating to see my neighbors selling their own city out and switching to Charter because they offer some first month free or something to sign you up for 2 years - for a service and price they would not have if not for the city anyways. I wonder if they can figure out why our taxes are going up.

 

[John Connor]

A Time Warner rep basically lied to my face.

Were you expecting a preacher?

 

[Engineer]

This is what happens when business owns the state.

This. Big lobby is where it's at.

 

[Engineer]

I had the opposite problem when choosing which ISP to use over my open fiber line. Probably had about 12-15 ISP's to choose between. Ended up picking one that offered 100Mb for cheap, no caps and a privacy guarantee.

and you highlight what's wrong with the US internet industry. Much of the rest of the world (such as yourself) has a different idea about the internet than the US does.

 

[StrangerGuy]

Too many people doesn't care, or the mindless chest-thumping support of the sacred thing called the free market.

 

[Engineer]

Too many people doesn't care, or the mindless chest-thumping support of the sacred thing called the free market.

The big companies lobby against the free market in the US. Just read Broadbandreports news stories about this (almost weekly) where ISP's lobby the government to cut off competition.

 

[StrangerGuy]

The big companies lobby against the free market in the US. Just read Broadbandreports news stories about this (almost weekly) where ISP's lobby the government to cut off competition.

Even without lobbying successful ISPs will grow to the point where they become natural monopolies eventually by the very nature of their business. Either way it is obvious the lack of effective regulation is the root problem.

 

[John Connor]

If I were President I would outlaw lobbying. As to what meaningful purpose does it serve? ZERO!

Regulation isn't the problem. Are electric compaines a monopoly? Do you have a choice as to where to buy your power? What about the water company? So long as their is a demand there will be a utility.

Perhaps we need Internet Co ops.

 

[lamedude]

The overbuilders didn't set the world on fire and gave up though Sonic.net seems to be still giving the old college try though. The courts and FCC changing the rules on line sharing didn't help the CLECs. Then you got the incumbents fighting municipal fiber tooth and nail.

 

[_Rick_]

The big companies lobby against the free market in the US. Just read Broadbandreports news stories about this (almost weekly) where ISP's lobby the government to cut off competition.

Ah, but lobbying is the very essence of the free market! Governmental assistance is just another resource to vie for. Naturally a small player can't afford it in the same measure as a big one - but that's how the free market rolls.

 

[Engineer]

Ah, but lobbying is the very essence of the free market! Governmental assistance is just another resource to vie for. Naturally a small player can't afford it in the same measure as a big one - but that's how the free market rolls.

So lobbying the government to cut off others from providing any service in the area = free markets?

Heh.

 

[_Rick_]

So lobbying the government to cut off others from providing any service in the area = free markets?

Heh.

Alternatively they could pay off the local cable laying monopoly...

 

[Engineer]

Alternatively they could pay off the local cable laying monopoly...

That's exactly why we pay more for shitty service compared to the rest of the world and have dropped to 31st on download and 42nd on upload speeds now (average) vs the rest of the world.

 

[OCGuy]

I have access to Cable, DSL, 4G Cell towers.....and possibly satellite. Monopoly not found....

 

[Engineer]

I have access to Cable, DSL, 4G Cell towers.....and possibly satellite. Monopoly not found....

Damn, OCGuy has all of those so EVERYONE else does too. Lock the thread down.

US down to 31st in download speed: http://www.dslreports.com/shownews/US-Now-31-in-Mean-Broadband-Speed-126824

" Lack of competition plays a role in the poor U.S. showing, as does the country's significant geographical mass (Russia is ranked 35, Canada is ranked 37).

But when cities want to build their own networks, the lobby kicks in and makes sure it's put to bed before it starts. Cheaper to lobby than to compete.

 

[OCGuy]

Damn, OCGuy has all of those so EVERYONE else does too. Lock the thread down.

If a competing provider has not put out the investment to provide you access, maybe they have done the math and it is not profitable to do so?

That is how the world works.

 

[Engineer]

If a competing provider has not put out the investment to provide you access, maybe they have done the math and it is not profitable to do so?

That is how the world works.

Or they have been blocked by the 'big boys' via a few nice gifts to politicians.

 

[olds]

But it seems like they have monopolies on neighborhoods. I've NEVER had a choice of ISP in the past 3 apartments and my current house. I live in a pretty good sized metropolitan suburb.

Same except I have a choice. Up to 50 mb with comcast cable or up to 1 mb with teleco dsl.
So I am stuck with comcast.

 

[SSSnail]

OCGuy, go post in my "stupid" thread.