Why do cable companies have monopolies




















Other kickbacks arguably include municipal requirements for ISPs such as building out service where it isn't demanded, donating equipment, and delivering free broadband to government buildings.

So they expedited the permitting process, gave Google rights-of-way access for little to no cost, and allowed Google to build-out selectively — i.

It also helped that these local governments had less leverage because the states of Kansas, Missouri, and Texas had streamlined video franchising laws so a provider need only get one license for the entire state. So far, everybody has benefited from clearing regulatory barriers for Google Fiber. And many more will benefit as local governments relax their regulations to make new entry feasible for Google Fiber and other new entrants.

Yet in this seed of success lies the potential for a new competition-strangling problem: What if local governments lower barriers for some competitors — like Google or their own public utility service — but not others?

Local politicians and regulators could then take credit for new high-speed broadband without giving up the exorbitant fees and other kickbacks they can force incumbent providers to pay today. There's no better way to kill incentives for building out or upgrading new networks. Because broadband competition can work — if localities would just get out of the way. Google showed in Kansas City, and now in Austin and Provo, just what can happen if local governments work with — instead of against — broadband providers to bring high-speed broadband to their citizens.

In return, Kansas City got a fiber network it couldn't possibly afford to build on its own — or maintain. Municipalities like Provo, Utah that thought they could afford to build their own public fiber network found they couldn't afford to run it. This is the best kind of public-private partnership: By removing regulatory barriers, local governments can let the private sector deploy broadband.

That's far better than borrowing money which taxpayers will eventually have to repay to build lumbering public broadband utilities that have no incentive to keep costs down. Tech giants have been a main area of focus as of late, with regulators and lawmakers at the state and federal levels launching probes and holding hearings.

Elizabeth Warren and Bernie Sanders have railed against powerful corporations on the campaign trail, and on the right, Republican Sen. Josh Hawley has taken on a crusade against Big Tech. But as I noted in , monopolies are really everywhere :. Smucker, Supermarket Brand, and Mars. Altria, Reynolds American, and Imperial have a 92 percent market share of the cigarette and tobacco manufacturing industry. Hillenbrand and Matthews have a 76 percent share of the coffin and casket manufacturing industry.

Experts and advocates have laid out a range of ideas for restoring healthy competition in the economy and reviving regulators. Some of it would entail new laws and frameworks, which, given the current state of affairs in Washington, seems unlikely — Congress can barely agree to fund the government , let alone enact a major overhaul of the workings of the US economy. But it has happened in the past, and as recently as the 20th century.

So back to my internet bill, where this all began: in the summer of , I moved apartments and gleefully called my internet provider to cancel my service. The person on the other end of the line asked where I was moving; I told them it was the same borough, different area.

Turns out in my new building, there was more than one option. Our mission has never been more vital than it is in this moment: to empower through understanding. Financial contributions from our readers are a critical part of supporting our resource-intensive work and help us keep our journalism free for all.

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Across industry after industry, power and market share are being consolidated. Sarah Lawrence for Vox. Reddit Pocket Flipboard Email. The Goods Is there a Thanksgiving turkey shortage?

An investigation. Sign up for the newsletter Sign up for The Weeds Get our essential policy newsletter delivered Fridays. Thanks for signing up! Check your inbox for a welcome email. Email required. It's a quick and easy read. I make a point of reading CircleID. There is no getting around the utility of knowing what thoughtful people are thinking and saying about our industry. Regrettably, there is a great deal of personalized hyperbole associated with this piece.

Just to mention a few examples: cable companies, in relation to their cable television service, initially created programming and put it on their systems because no one else would. They ultimately sold most of those channels. Multiple competitors to cable broadband, including telco offerings FiOS competitive infrastructure e. Antitrust enforcement is appropriate for true, proved abuse.

That may already be the case for Google, Facebook, Amazon and Apple, but the author here is engaging in selective opinion rather than proof of current improper actions. Full disclosure; I represented the cable industry for over 30 years. I still write a column about all this in the trade press. I generally do not engage with the excellent writing here, but this one went over the line. Notify me of follow-up comments. We encourage you to post comments and engage in discussions that advance this post through relevant opinion, anecdotes, links and data.

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