# How to make sense of Cable service **URL:** \ **Category:** Factual Questions\ **Created:** [December 20, 2013, 8:46pm UTC](https://boards.straightdope.com/t/how-to-make-sense-of-cable-service/676848 "2013-12-20T20:46:11Z")\ **Posts on this page:** 1\ **Page:** 2
**Author:** ![runningdude](https://avatars.discourse-cdn.com/v4/letter/r/e9c0ed/32.png) [@runningdude](https://boards.straightdope.com/u/runningdude)\ **Post date:** [December 21, 2013, 6:55pm UTC](https://boards.straightdope.com/t/how-to-make-sense-of-cable-service/676848/21 "2013-12-21T18:55:32Z")
> [@Thinktank](#): > > Hi and congratulations Kunilou, you hit the mark the closest in the spirit of the OP. I ask questions, lot’s of them and when I have such an invaluable resource as SD I don’t see why I shouldn’t find out what other ppl know about cable companies and why they are some places and not others, how are they in the position to be there in the first place? And what inhibits the same spirit of competitiveness that would put say, a new McDonald’s right across the street from a Burger King? > > I guess this will start getting very political very quickly. Not quite political, mostly simple economics… Phone, television, and internet require a massive upfront investment, hundreds of thousand to millions to enter a new market. The must purchase right of way to build utility poles or underground conduits (or rent space in existing facilities). They must physically string wires or fiber optic cable on these poles. They must build local head house facilities to power and provide signals to these wires. Only once this massive investment is made can they then start marketing and connecting customers! Cable companies back in the 80’s built their networks from scratch. They entered into exclusive contracts with TV channels that precluded competition from phone companies to help recoup their investment. Today, these contracts are expiring, or regulations are forcing them to allow the phone companies to provide competing television service. Politics probably enters into which company gets which market, but a lot of it that it is simply too expensive to duplicate service once one cable company enters. The phone companies have an advantage entering the TV market, because they have an existing network connecting to nearly every house in a market. With a few new servers and spot upgrades, they can offer DSL internet and limited TV service over the existing wires. Only in extremely dense and well populated areas might you see competition among peers offering perfectly duplicate services. [Previous page](https://boards.straightdope.com/t/how-to-make-sense-of-cable-service/676848.md?page=1)