So Verison has been laying down fiber-optic cables in my neighborhood lately to offer it’s denizens super-bradband/super fast internet services.
They would like to offer televised services as well, but they can’t, because the cable companies are fighting them tooth and nail in an effort to stop them.
I mean really. What fucking leg could the cable companies possibly have to stand on? THEY’RE LAYING DOWN THEIR OWN FUCKING CABLES FCOL!!
At their own expence witch I know can’t be cheap.
I could understand if it was like the phone companies where in they have to share the same phone lines, but sheesh!! this is something completely different!!
I hope Verison drives these fuck wads out of business!!
**then years from now I can pit Verison for being money grubbing whores with lousy service. but hey, I’ll cross that bridge when I come to it.
Most utilities, including cable and phone providers, have government granted monopolies. It is this guarantee of no competition that convinces them to invest the huge amouts of initial capital to construct the infrastructure. In exchange for the monopoly power, the government regulates prices.
Now, if you had invested untold billions to build a cable infrastructure with the understanding that you’d be the sole provider of cable TV, wouldn’t you be a bit miffed if a completely unrelated utility started moving in on your turf? There are really two ways to respond:
Demand that the government respect its guarantee of your monopoly power and forbid the other utility from entering your market, or
Demand that the government deregulate your prices so you can compete against the new guy fairly.
I prefer option two, and that’s been the trend in general over the past two decades. However, there are approximately nine zillion local cable and phone companies, all with different contracts and operating under different legislation, so the issue is extremely complex.
But to answer your question, no, this particular sector is hardly ever a free fucking market. It’s getting closer, though.
No, generally they make them charge enough to cover costs and earn a little profit. The reason utilities often lobby for deregulation is usually not because they want to charge higher prices, but because they want to offer a wider range of services instead of being locked into a rigid rate structure. For example, your cable company, in order to compete with Verizon, may want to start offering its own VoIP telephone service. The existing monopoly charter may not allow it.
It’s called a natural monopoly. Verizon is laying cable in my area, too. By coincidence ( :dubious: ) Adelphia, the cable company, has become a lot more response and helpful recently.
