Re: HR 1542 [OT, anti-BS attempt, US]

[Miles Fidelman <mfidelman () civicnet org>]

On Mon, 7 May 2001, Fletcher E Kittredge wrote:

> BTW, if you spend much time with regulators and lawyers, you will be
> aware that there is a major difference between the cable network and
> the PSTN.  After the mid-1930's, the PSTN was built by a company which
> was guaranteed a specific, profitable rate of return.  The cable
> network was built by many small entrepreneurs who were not guaranteed
> a profit nor even solvency.  For that reason, the PSTN is more
> arguably a public resource.

Except that most of today's cable systems were built while municipalities
could, and did, grant exclusive franchises. Overbuilding an incumbant
cable operator is as expensive and risky as becoming a CLEC - probably the
reason that neither CLECs nor cable overbuilders are showing much
commercial success.

As to "small entrepreneurs" - that may have once been true, but I wouldn't
call AT&T/MediaOne/TCI, AOL/Time Warner, Adelphia, or Charter "small
entrepreneurs." These guys engage in monopoly tactics that rank right up
there with those of the ILECs.

Miles


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