Only 30% of Americans Out of Comcast Reach After Deal
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I guess that means there aren't any free markets, since you are at least being violently taxed, and are probably violently forced to comply with regulation unless your implicit production process doesn't violate any such laws, which is unlikely.
But you outlined precisely when it breaks down: when 'ownership' cannot be determined because the thing in question is a communal resource.
It's not the concept of ownership that breaks down; it's your analogy that breaks down.
Money is an entry in a ledger. It can or cannot have a tangible manifestation (coins, bills), but it is not always the case (reserves are purely electronic).
I don't disagree with your sentiment, but just to note:
Municipalities can't have exclusive franchise agreements anymore (since 1992).
As an example, see the cable franchise map link (in bold) here https://www.seattle.gov/cable/franchises.htm --thankfully it's not a perpetual contract.
Think about those sentences compared to your second sentence.
>So glad that deregulation works to open the free market.
You set up a strawman about the free market in the beginning and then contradict it at the end. The reason it doesn't feel free is because by definition, it isn't.
However, when we had consistent outages and horrible service, I eventually gathered enough evidence to give to the HOA of what the problem was, and when the HOA contacted the ISP, they looped me into an email chain with their account rep and we got immediate service. If we all had to choose Comcast or ATT individually, neither would really care about individuals. But the HOA is in a much larger bargaining position and our ISP cares about losing the whole building.
From my experience and friends in the area, those in condo buildings with the exclusive ISP arrangement tend to get better/faster service than those in condos with the standard cable/telco choice. Since condo buildings are managed by the residents who mostly use internet, usually enough percentage care about the quality of internet access to hold the exclusive ISP accountable or replace them. Of course in Apt buildings, mgmt just views internet as an expense and it's a different scenario.
Monopolists can and do arise with or without the assistance of government. As long as someone has authority over a resource and is amenable to being bought.
In other words, if you or anyone else attempted to compete with Comcast in your municipality, the government would use violence (or the threat thereof) to prevent them from doing so. If that doesn't count as "regulation" then I don't know what does.
We -Norway, a country of 6 million people spread out- have multiple companies competing in all parts of the country. Fiber companies compete in the larger cities, and even in the smaller towns we are starting to see more and more fiber competition.
I have a hard time believing the U.S. offers less grounds for competition, that's a ridiculous proposal at best. When we can do it, you can.
Your problem is rampant corruption. I wish I could, as a foreigner, ignore it, but what happens across the Atlantic has a tendency of spreading here.
This isn't really true. Verizon stopped its FiOS rollout several years ago, and was never interested in dense urban areas. Comcast only offers residential internet over coax, which is not a "fiber option."
Population density is a red herring. The dense cities of the US have nothing like the connectivity of cities abroad.
[1] 10% of Oslo is below Norway's very generous poverty line ($25k). 25% of Baltimore is below the much less generous federal poverty line ($25k for a family of 4!).
[2] Talks to get FIOS in Wilmington broke down because the government demanded "even coverage": http://www.dslreports.com/shownews/Dont-Actually-Demand-Anyt.... This is a city where half of kids live below the poverty line, and the median income is about 65% of the national average. Basically Verizon would have to spend a bunch of money running fiber to poor areas that could never afford it. It makes no sense. But that's the kind of ridiculous demands that leave urban markets in the U.S. without cable competition.
Before deregulation all I had in my metro area was dial up, ISDN, or a T1. Then came the various providers riding on the dial up wave when the phone company was forced to allow them.
Guess what I was stuck with even more dial up. Eventually DSL showed up but was the same price by all of them. Then Comcast (I forget who they were before the name changed) came in and suddenly my DSL came down in price but was still slower.
So, yeah it worked. The key takeaway is when we look for bad its easy to forget worse. I am no fan of Comcast in general but they have been many times faster than my phone company for the same price or less. Would it be nice to have a third or more option? Certainly and I damn well want someone to one day think they can do it, but if you common carrier it we will be stuck with whatever some damn government guy thinks is good for my area.
You know that means, tell me who has their streets plowed first in the storms, well lets just say the right people don't live here.
TV is a luxury, and simply functions as entertainment for the vast majority of Americans. More and more people are "cutting cable" than ever, deciding that they'll find their entertainment somewhere else.
The concerning part is high-speed internet, which is coming close to a necessity for many people to live and work, and it will only progressively become more-so. Comcast is my only option for high-speed internet, and they charge me too much for speeds that are too slow, but I have to pay it.
I don't know why it isn't treated as a utility at this point, since to have any shot of upward monetary mobility it's essentially required. The answer of course is to make providers common carriers, but money and political will make that extremely challenging.
Then add in the personal networks, friends and family, and ever present cell phones. If anything their cell phones are far more important than the internet.
Upward mobility is primarily an effect of self discipline and will power. Internet and related are simply tools that help one get there but by no means are not the limiting factor.
Data is quickly becoming just another utility, along with power, water, and climate control, and just as necessary.
Uh, yeah, they know, and since the policy goal is to eliminate upward mobility, this is not exactly supportive for internet access.
Many jobs require some sort of internet access when applying. More and more services are becoming internet-only.
This is actually one of the strongest arguments against all that "three strikes" progressive-enforcement the copyright cartels keep trying to propose; is sharing a movie 3 times worth taking away someone's ability to find a job, or participate in all those profit-making interactions with modern businesses?
(clarification: nationalize the ISP portion of the business that is utility-like; the content-production and other aspects of the business can be preserved as they currently exist)
What happens after that has several options. It can be a publicly-owned utility, or spun off as a heavily-regulated independent (private) corporation under the PUC, to name a few possibilities. Such minutia is a secondary issue, and open for debate.
Now that internet access has become a requirements for even basic things such as applying for a job, declaring the ISPs a "public utility" is long overdue.
Is this about making sure that poor people have access to the internet, or subsidizing Netflix's business model? If it's the former, then Comcast is irrelevant. Let's address the problem directly and subsidize cell phones with HSPA+ level data access.
I think most places will support more than one ISP, but it takes time and the right economic environment to shell out the big bucks you need to challenge an incumbent.
Did you forget the whole "Enron" mess - and the deregulation of the utilities to allow it?
Rolling blackouts were the fault of a private business, trying to extort more profits.
> Calling something essential
Are you disputing that activities such as "Applying for a job" are not essential? If so, there are quite a few business out there trying to hire people that might take issue with such an opinion.
No, just that you have to be precise about what is essential and what isn't, and tailor the solution to the actual problem. It's essential to be able to apply for jobs online. It's not essential to be able to watch the latest episodes of Sherlock on Netflix. If the concern is really about making sure the poor have adequate access to the internet for things like job applications, the way to go is to subsidize wireless service with data access. Alternatively, cheap, broadly available broadband already exists in the form of DSL service.
> nationalize the ISP portion of the business that is utility-like; the content-production ... business can be preserved
I believe I was rather precise in my original post. Access to the internet is the utility; any other part of the business - such as the production and selling of TV shows - can be left as-is.
And while they are an important consideration, of course, the concern is NOT about "the poor". An ISP should not be an artificial roadblock to necessary personal, business, or governmental communication regardless of class.
Also, "jobs" - while important - are not the only essential activity. More and more human interaction requires the internet. These various activities (many of which have not even been invented yet!) should not be contingent upon some local monopoly's whim.
As for the "concern" about watching some stupid TV episode (despite Netflix being a 3rd-party and off-topic), who are you to say what is and is not "essential" for other people? What is "essential" can vary wildly:
http://tressiemc.com/2013/10/29/the-logic-of-stupid-poor-people/Unlike Norway, the U.S. is not an oil rich nation that has a culture of throwing money at infrastructure. It also has extremely pernicious rural versus urban politics. You regulate the cable companies as a utility, you'd kill capital investment in the networks.
"Public Utility" != "free"
While some sort of subsidized access for the poor is going to be necessary, of course, that is another discussion entirely.
The issue here is how to deal with a monopoly. More specifically, how to deal with a "natural monopoly"[1] that forced out all other competition. Such behavior is expected from natural monopolies, and the usual way of dealing with such businesses is to make them utilities.
As for the DSL diversion - you seem to be under the impression that you get a choice[2].
> kill capital investment in the networks
LOL - We paid massive amounts in the 90s-00s[3] to pay for the necessary infrastructure, and I still don't have a fiber connection. That song and dance has been used to swindle voters, politicians, and businesses for several decades. If they had any intention to actually put that money towards infrastructure, we would have seen it by now.
Note: upgrading the modems and such on the edge of the network (i.e. DOCSIS 2 -> 3) is merely using existing infrastructure in better ways. They were paid for "last-mile" deployment of fiber, and so far we've only seen tiny bit of FIOS (and similar).
[1] http://en.wikipedia.org/wiki/Natural_monopoly
[2] http://www.broadbandmap.gov/summarize/nationwide#wirelinePro... http://www.broadbandmap.gov/number-of-providers/wireline/ser... (compare: min:1/max:1 vs min:2/max:whatever)
[3] http://www.pbs.org/cringely/pulpit/2007/pulpit_20070810_0026... (to name one example; there are several)
I understand the theoretical justification. However, in practice, regulating businesses as utilities is associated, in America, with all sorts of things that don't go directly to addressing the monopoly, and can effectively kill industries. For example a common issue is cross-subsidization, particularly geographic cross-subsidization. Rural votes carry about 2x the weight in the U.S. as urban votes, which means there is a huge pressure on public utilities to waste capital building out to rural areas at the expense of urban areas. This isn't a theoretical issue, it's a feature of our political system that causes problems with everything it touches. For example, regulation as a public utility effectively killed passenger rail here in the U.S. It continues to hamper the remnant of passenger rail, in Amtrak, because the company is forced to carry unprofitable lines that run through mostly rural states instead of focusing on the profitable, high-density northeast corridor. In another example, about $4.5 billion a year is transferred from users of long distance service to subsidize phone service in rural areas.
There must be something to deal with the natural monopoly issue, but the public utility regime in U.S. municipalities is simply too dysfunctional to be appropriate for a rapidly-changing area like telecom.
> They were paid for "last-mile" deployment of fiber, and so far we've only seen tiny bit of FIOS (and similar).
The $200 billion figure often bandied about is a total fabrication, achieved by comparing telecom profit rates to that of rate-regulated utilities and calling the delta "excess profits." It's highly disingenuous. Time Warner and Comcast have a net margin of 10-11%. Apple and Google are around 20-21%. Saying that the cable companies are making "excess profits" and calling that a "$200 billion payment to upgrade infrastructure" is utterly ridiculous.
Then let's measure what really matters - the number (or percentage) of people who are served by Comcast only. My guess is between competing cable companies, FIOS, and DSL it's a pretty small number and wouldn't generate any clicks.
EDIT: Other people are saying 9% don't have other choices. But even then I'll bet they're not include mobile phone companies, and everybody has access to satellite.
2. FiOS has a very small footprint.
3. DSL can barely be considered adequate anymore, and doesn't even meet the FCC's definition of broadband.
4. Wireless broadband has very low data caps, and high latency.
5. Satellite internet (it can't even be considered broadband) has even lower data caps, and even higher latency.
Not true. In my area there are two cable companies that cover the whole city.
>FiOS has a very small footprint.
15 million households isn't a small footprint.
>DSL can barely be considered adequate anymore, and doesn't even meet the FCC's definition of broadband.
Adequate for what? DSL is fine for streaming video.
>Wireless broadband has very low data caps, and high latency.
That's temporary. They're still building out the 4G networks. When they're done they'll have to increase caps substantially to compete. And 4G has very low latency.
>Satellite internet (it can't even be considered broadband) has even lower data caps, and even higher latency.
Granted, satellite wouldn't be my first choice.
Thanks for pointing this out. It would be better for that second percentage to be zero, but this isn't that alarming.
I live in a Comcast area. Can you explain what my alternative is? I've certainly never known about one.
I'm guessing you're rural.
This is a weird way to say this. "Only 30%" seems like kind of a large number even in this context. I get the point but maybe it would have been more effective to say that 70% of Americans can now be reached by Comcast.
Comcast will exploit this to the hilt, of course. There are a lot of "technical" grounds on which Comcast is not a monopolist, and it will argue those grounds aggressively if investigated.
So the numbers really don't mean anything.
It's my one hope at this point since Google isn't someone Comcast can just buy and of course Google realizes the importance of not allowing a single entity to control something like our access to the internet.
So when will Google fiber hit Denver and beyond?
Unless Google is that entity, of course.