more on Strung Up With Cable TV

[Dave Farber <dave () farber net>]

-----Original Message-----
From: David Lesher <wb8foz () nrk com>
Date: Sat, 28 Feb 2004 09:43:29 
To:dave () farber net
Subject: Re: [IP] Strung Up With Cable TV

Dr F:

 
> Taking all of this together, my sense is that the *real* reason cable rates are
> going up is that the companies have a monopoly so they can raise prices.  The
> company needs capital to build their business and they are using current
> customers to fund that growth since Wall Street has always been suspicious of
> the cable business.
>
> So here's an idea -- the best way to improve the service and choice is to
> deregulate cable monopoly.  Either allow more than one company to install cable
> in a neighborhood -- there's plenty of space on the telephone poles to string
> another cable -- or treat the cable as a common carrier and allow different
> companies to deliver services.  The later approach would be to remove the
> vertical integration monopoly.

The first option is known as an 'overbuilder'... During the boom,
RCN {ex-Erols} and PEPCO [the DC area power utility] formed
Starpower to do just that. Paul Allen put ~$1.6 billion in.

Now, PEPCO has pulled out, Paul Allen sold 40% of his stock for 
$2 million, and "RCN bankrupcy" on Googlenews will bring you the
rest of the bad news. 

And Comcast? They are buying Mickey Mouse.

What this all says about Chairman Powell & "Less regulation will
bring more providers" I leave as an exercise for the reader.

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