nanog mailing list archives
What do we mean when we say "competition?" (was: Re: [Latest draft of Internet regulation bill])
From: David Barak <thegameiam () yahoo com>
Date: Tue, 15 Nov 2005 06:28:21 -0800 (PST)
--- Owen DeLong <owen () delong com> wrote:
True competition requires the ability for multiple providers to enter into the market, including the creation of new providers to seize opportunities being ignored by the existing ones.
Technically, lots of other providers CAN enter the market - it's just very expensive to do so. If there are customers who are not receiving service from one of the incumbent providers, a third party is certainly welcome to {dig a trench | build wireless towers | buy lots of well-trained pigeons for RFC 1419 access} and offer the services to the ignored customers. The problem is that the capital expenditures required in doing so are very, very high, and most companies don't see the profit in doing so.
If two companies can act as gatekeeper for the entire market in a given area, that is not an environment where market forces carry much meaning.
Actually, here's where I'd disagree: market forces are exactly the thing which is keeping other providers OUT. It's too expensive for them to buy their way into these areas, and during all of the time when access was mandated to be (relatively) cheap by law, very few third parties actually built their own infrastructure all the way to homes. There are some competitive cable plants in some cities (I remember Starpower/RCN doing this in DC), but I'm not aware of any residential phone providers who built all the way out to houses exclusively on their own infrastructure. This IS the market at work. If you want it to be different, what you want is more, not less regulation. That may or may not be a good thing, but let's just be very clear about it. David Barak Need Geek Rock? Try The Franchise: http://www.listentothefranchise.com __________________________________ Yahoo! FareChase: Search multiple travel sites in one click. http://farechase.yahoo.com
Current thread:
- Re: [Latest draft of Internet regulation bill], (continued)
- Re: [Latest draft of Internet regulation bill] Blaine Christian (Nov 14)
- Re: [Latest draft of Internet regulation bill] Sean Donelan (Nov 14)
- Re: [Latest draft of Internet regulation bill] Steven M. Bellovin (Nov 14)
- Re: [Latest draft of Internet regulation bill] Sean Donelan (Nov 14)
- Re: [Latest draft of Internet regulation bill] Blaine Christian (Nov 14)
- RE: [Latest draft of Internet regulation bill] Michael Hallgren (Nov 14)
- Re: [Latest draft of Internet regulation bill] Jared Mauch (Nov 15)
- Re: [Latest draft of Internet regulation bill] Steven J. Sobol (Nov 17)
- Re: [Latest draft of Internet regulation bill] Jared Mauch (Nov 17)
- Re: [Latest draft of Internet regulation bill] Owen DeLong (Nov 15)
- What do we mean when we say "competition?" (was: Re: [Latest draft of Internet regulation bill]) David Barak (Nov 15)
- Re: What do we mean when we say "competition?" (was: Re: [Latest draft of Internet regulation bill]) Matthew Crocker (Nov 15)
- Re: What do we mean when we say "competition?" David Barak (Nov 15)
- Re: What do we mean when we say "competition?" Matthew Crocker (Nov 15)
- RE: What do we mean when we say "competition?" David Schwartz (Nov 15)
- Re: What do we mean when we say "competition?" Owen DeLong (Nov 15)
- Re: What do we mean when we say "competition?" Sean Donelan (Nov 15)
- Re: What do we mean when we say "competition?" Owen DeLong (Nov 15)
- Re: What do we mean when we say "competition?" Sean Donelan (Nov 15)
- Re: What do we mean when we say "competition?" David Barak (Nov 15)
- Re: What do we mean when we say "competition?" Owen DeLong (Nov 15)