[171328] in North American Network Operators' Group
Re: The FCC is planning new net neutrality rules. And they could
daemon@ATHENA.MIT.EDU (Owen DeLong)
Sat Apr 26 16:03:17 2014
X-Original-To: nanog@nanog.org
From: Owen DeLong <owen@delong.com>
In-Reply-To: <5359D8A5.7030107@cox.net>
Date: Sat, 26 Apr 2014 13:01:27 -0700
To: Larry Sheldon <LarrySheldon@cox.net>
Cc: nanog@nanog.org
Errors-To: nanog-bounces@nanog.org
On Apr 24, 2014, at 8:38 PM, Larry Sheldon <LarrySheldon@cox.net> wrote:
> On 4/24/2014 10:23 PM, Patrick W. Gilmore wrote:
>> The invisible hand of the market cannot fix problems when there is a =
monopoly.
>>=20
>> Put in economic terms, a player with Market Power is extracting =
Rents. (Capitalization is intentional.)
>>=20
>> Regulating monopolies allows a market to work, not the opposite.
>>=20
>=20
> Regulating monopolies protects monopolies from competition.
>=20
> Monopolies can not persist without regulation.
This is absolutely false. Regulating monopolies CAN protect monopolies, =
but that=92s not always the outcome.
Monopolies absolutely can persist without regulation. Except in the most =
highly dense population areas, there is not a sufficient market to =
support the deployment of more than one copy of a given media type to =
that population. As a result, there is, in most places, a natural =
monopoly in each media type, whether that=92s electrical, water, cable, =
twisted pair, fiber, etc.
> A regulated monopoly is a monopoly, with all of the powers granted to =
monopolies by regulation.
Yes, but an unregulated monopoly is a monopoly without constraints =
imposed by regulation.
Owen
