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Against Monopoly

defending the right to innovate

Against Monopoly

Monopoly corrupts. Absolute monopoly corrupts absolutely.





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Um, WTF? Increasing monopoly by reducing long distance competition REDUCES prices??! Surely the problem is due to lack of last mile competition.
@Tony: I think you read something backwards. I agree the sentences could have been structured more clearly, but the point is that the "1996 Telecommunications Act, which forced the local telephone monopolies to grant access on reasonable terms" created more competition and lower prices in long distance call markets. By choosing to "exempt the telecoms and cable companies from the open access provision", the Bush FCC preserved the existing monopolies in the ISP and "last mile cable" businesses, and prices remained high while competition failed to overcome the barriers in place.

For example, Japan has a similar "open access rule" on Internet cable and backhaul providers there, and they already have 100Mbps lines for $50/mo (or less!) to most consumers. In Los Angeles, even where many Competitive Local Exchange Carrier offices exist, all $50/mo. will get you is about 10Mbps down and 1Mbps up over a monopoly cable connection.

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