Hacker News new | past | comments | ask | show | jobs | submit login

Comcast and the ISP industry.



ISPs are a natural monopoly, but I don't believe they're actively working on price fixing like the Robber Barrons of the late 1800s / early 1900s.


The physical plant is a natural monopoly as you don't want everyone to put their own poles and/or wires in.

Nothing special about ISPs.

See Phone Service and Electricity.


I can agree to that.


Comcast and the companies that became Comcast never had competition. It doesn't make sense to be the second cable company.


Time-Warner Cable, Verizon, Comcat, Google Fiber... plenty of competition.

The issue with natural-monopolies is that when one company starts serving a neighborhood, it makes no sense for a 2nd company to start serving the same neighborhood. That's just wasteful.

So there are huge amounts of Verizon-only neighborhoods or Comcast-only neighborhoods out there.

--------

Other countries solve this by highly regulating the "natural monopoly" part. IE: If you are going to lay wires to a neighborhood, you become subject to strict regulations. (Ex: utility).

Then, they force you to provide multiple choices. The deregulation of power companies for example allows me to pick a blend-of-energy, or I can pay a little bit more for clean energy providers.

Similarly, if we turn Comcast into a government-regulated utility (aka: accept the fact that it will always monopolize a neighborhood), and then force it to supply multiple ISPs in its pipes, things would probably get better.

My county actually has this deregulation, but it doesn't seem to work in practice because Comcast is both cheaper and got better customer service than the other ISPs that run on Comcast's networks.


Huge portions of the cost of building a utility are due to local regulations, not the inherent cost of doing it. http://www.wired.com/2013/07/we-need-to-stop-focusing-on-jus...


The argument for "treat ISP infrastructure like a utility" has always been that quality of service will improve and prices will drop if competition is introduced. It sounds to me like the regulations did exactly what would be expected when an actual market is allowed to form. How does this arrangement not work if you have good customer service and low prices from Comcast? Are you suggesting that the alternatives are somehow even worse than standard Comcast?


> Are you suggesting that the alternatives are somehow even worse than standard Comcast?

Arguably, it forces Comcast to have better customer service. Because they're actually competing in my area. I actually go with Verizon in my neighborhood though.


There are huge regulatory hurdles to starting new ISPs.




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: