nanog mailing list archives
Re: Some truth about Comcast - WikiLeaks style
From: Owen DeLong <owen () delong com>
Date: Sun, 19 Dec 2010 20:44:21 -0800
On Dec 19, 2010, at 6:12 PM, JC Dill wrote:
On 19/12/10 5:48 PM, Richard A Steenbergen wrote:On Sun, Dec 19, 2010 at 08:20:49PM -0500, Bryan Fields wrote:The government granting a monopoly is the problem, and more lame government regulation is not the solution. Let everyone compete on a level playing field, not by allowing one company to buy a monopoly enforced by men with guns.Running a wire to everyone's house is a natural monopoly. It just doesn't make sense, financially or technically, to try and manage 50 different companies all trying to install 50 different wires into every house just to have competition at the IP layer. It also wouldn't make sense to have 5 different competing water companies trying to service your house, etc.This is the argument the government uses to keep first class mail service as an exclusive monopoly service for the USPS, claiming you wouldn't want 50 different mail carriers marching up and down your walk every day. Yet we aren't seeing a big problem with package delivery. Currently you have 3 choices, USPS, UPS, and FedEx. The market can't support more than 3 or 4 package delivery services (e.g. we had 4 with DHL, which didn't survive the financial melt down). Why not open up the market for telco wiring and just see what happens? There might be 5 or perhaps even 10 players who try to enter the market, but there won't be 50 - it simply won't make financial sense for additional players to try to enter the market after a certain number of players are already in. And there certainly won't be 50 all trying to service the same neighborhood.
You can send letters just as well as packages via the other carriers. The "USPS monopoly" on first class mail is absurd. In fact, FedEx, UPS, et. al could offer a $0.44 letter product if they wanted to. They could not call it mail. They could call it "first class document delivery." However, the reality is that they probably couldn't sustain their business at that price point. The USPS doesn't have an actual monopoly so much as ownership of the term Mail almost like a trademark. What they do have is an infrastructure built at taxpayer expense that creates a very high barrier to entry for competition at their price points.
And if a competing water service thought they could do better than the incumbent, why not let them put in a competing water project? If they think they can make money after the cost of the infrastructure, then they may be onto something. We don't have to worry that too many would join in, the laws of diminishing returns would make it unprofitable for the nth company to build out the infrastructure to enter the market.
The point is that the cost of the infrastructure usually exceeds what you can recoup if you only have part of the population in a given area as your customers, thus, creating natural monopolies. Owen
Current thread:
- Re: Some truth about Comcast - WikiLeaks style, (continued)
- Re: Some truth about Comcast - WikiLeaks style JC Dill (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Suresh Ramasubramanian (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Steve Schultze (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Choprboy (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Jeffrey S. Young (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style JC Dill (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Lamar Owen (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Jeffrey S. Young (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style JC Dill (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Mike (Dec 19)
- Re: Some truth about Comcast - WikiLeaks style Owen DeLong (Dec 19)
- Re: Some truth about Comcast - WikiLeaks style JC Dill (Dec 19)
- RE: Some truth about Comcast - WikiLeaks style George Bonser (Dec 19)
- Re: Some truth about Comcast - WikiLeaks style Aaron C. de Bruyn (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Adrian Chadd (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Leo Bicknell (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Steve Schultze (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Owen DeLong (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Steve Schultze (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Lamar Owen (Dec 20)
- Re: Some truth about Comcast - WikiLeaks style Leo Bicknell (Dec 20)