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A tech antitrust problem no one is talking about: US broadband providers

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181–190 of 354 posts

Re: A tech antitrust problem no one is talking about: US broadband providers

#181

I'm always surprised this isn't discussed more. Big tech is accused of being monopolistic, but there is a constant flow of new players in the field, all gaining market shares and building the Next Big Thing, while telecom providers are pretty stagnant. I'm curious why cities don't directly lay down the infrastructure work for broadband access. In some cases that might raise property value enough that the town could m…

Big tech has big profit margins. Big telecom services doesn't. Competitors don't enter the industry because there's little money to be made. The only way you make money by starting an independent ISP right now is by serving some niche clientele e.g. serving wireless internet to events at locations without enough broadband access.

I don't think competitors are avoiding telecom due to low margins. I guess you could say the high amount of start-up capital AND high regulatory hurdles AND the low margins (meaning your payback takes longer) cause it to be undesirable...then... yeah margins are (part of) the issue

Re: A tech antitrust problem no one is talking about: US broadband providers

#182

Earlier quoted context omitted.

There may be a constant flow of new players, but much of the time when they start to show a certain amount of success then one of the big players simply buys them up.

You phrase it as if these are hostile takeovers. Having been a founder, I can state that most of my peers wanted acquisitions. It was a way to finance the vision and growth. Would YouTube, Instagram, or dozens of other companies have been able to get where they are w/o the support of their acquirers? Just think of the burn alone and the required investment is a scary figure.

The situation isn't comparable to social media unicorns courting acquisition at all.

Comcast and the other big incumbents have one very clear overt objective: own the customer base for the foreseeable future. If you're a small independent ISP and try to go up against them, as soon as you're on their radar you can expect a pretty ruthless attack. The most mild form of this is Comcast's sales team is willing to offer something closer to fair pricing to condo properties if it involves ~5 years lockin vs a new competitor. A friend owns a business in this space and has watched a couple competitors that were growing fast locally suddenly find their entire customer base gone within weeks via this. Less fortunate people find themselves facing a legal challenge at the city or state level.

And that's not even getting into what happens if your small ISP competitor gets going well enough to start talking to the city about renting space on utility poles or doing some trenching.

These mega ISPs aren't interested in acquiring competition for the last mile. They want to pre-empt competition existing entirely, and they can and will use every single tool available to them in doing so.

Re: A tech antitrust problem no one is talking about: US broadband providers

#183

Earlier quoted context omitted.

Sure, programs get cut or funded based on various political considerations, and there might be cuts some years and growth other years. And there is a deliberate attempt to stymie provision of abortion services. That's a fair point. But overall, education spending consistently goes up over time: https://www2.ed.gov/about/overview/fed/10facts/index.html#ch... > On a per-pupil basis and adjusted for inflation, public sc…

Maybe this is a nitpick, but: it can be both true that per-pupil spending goes up and that spending on social programs via the DOEd goes down. A concrete example: the current DOEd has increased funding of both charter and private schools. We can go back and forth on whether elements of that constitute social programs, but I think the point about it not being tied to the larger funding trend stands.

That’s true in principle, but it’s not a significant factor in the aggregate. Almost all US social programs are government-administered. To your example, we are behind Western Europe in the area of school choice: https://www.edchoice.org/engage/faqs/how-does-school-choice-...

Similar stories about in other areas. In Europe it is common for private companies to operate transit systems. (Stockholm’s subway is operated by the same company that operates Hong Kong’s.) In the US, nearly every large transit system is operated by government workers on the government payroll.

Re: A tech antitrust problem no one is talking about: US broadband providers

#184

The problem is the proposed solutions really just entrench existing providers, specifically net neutrality policies: They legalize monopolies as long as they're "following the rules!" _You_ _cannot_ _legislate_ _good_ _behavior_ _into_ _monopolies_. So while I appreciate the spirit of Net Neutrality rules, the solution is fundamentally flawed. Let's say you want to open an ISP in your neighborhood. Based on their his…

> _You_ _cannot_ _legislate_ _good_ _behavior_ _into_ _monopolies_

Why not? Yes, breaking up monopolies is good but that doesn't mean we can't regulate industries before the point where things get so bad that there is enough political will to break them up.

Re: A tech antitrust problem no one is talking about: US broadband providers

#185
post #165

Earlier quoted context omitted.

Yep, got DSL at my current location in 2008 and they haven't upgraded anything since then. Very minor bump in peak bw they would configure, I'm at 15M/768k and that's as high as it goes. Network is garbage though and lots of time it's saturated upstream. $30K to run fiber to the DSLAM...if it was a fiber fed box I could probably get enough neighbors on board to swing it...but no.

I got my DSL in 2010. 1.5Mb/688Kb. No change in ten years. Also, I get dropped and reconnected every couple of days to a DSLAM channel running at 20Kb (!) down and have to reboot the modem to get back to 1.5Mb.

respect

Re: A tech antitrust problem no one is talking about: US broadband providers

#186

The problem is the proposed solutions really just entrench existing providers, specifically net neutrality policies: They legalize monopolies as long as they're "following the rules!" _You_ _cannot_ _legislate_ _good_ _behavior_ _into_ _monopolies_. So while I appreciate the spirit of Net Neutrality rules, the solution is fundamentally flawed. Let's say you want to open an ISP in your neighborhood. Based on their his…

> If you want to emphasize a word or phrase, put asterisks around it and it will get italicized.

https://news.ycombinator.com/newsguidelines.html

Re: A tech antitrust problem no one is talking about: US broadband providers

#187

This is such a weird thing. After spending time in SE Asia, where bandwidth is cheap and plentiful (in the cities), it's painful coming back to Europe (and Australia). I'm in Berlin atm, and the wifi is shit, bandwidth is expensive and unreliable. And the phone plans suck. I was in Perth (Australia) before that, and access there is terrible. In Cambodia, 120Gb (per week) of download cost me US$1 (per week) over good-…

European cafes won't even give you tap water (even if you have bought other stuff) for free, let alone free wifi.

I'm not sure what you're basing this off of, but it's largely not true.

Re: A tech antitrust problem no one is talking about: US broadband providers

#188

Earlier quoted context omitted.

> I don't see how it's dramatically different for Twitter (or Facebook or Google) deciding to block the New York Post than it is for Comcast to do so. If Comcast decides to block the New York Post, you can't see it at all until you change your Internet provider. That may involve breaking a contract, and will certainly cost you time and money. And that's if you have a choice at all - large swathes of the country have…

Let's choose a very similar example then. If you use a Comcast email address -- is it ok for them to scan emails you send to your friends, and quietly delete them if they contain links to newspapers they don't approve of? This would be illegal under net neutrality, and is identical to what Twitter and Facebook are doing regularly.

> is it ok for them to scan emails you send to your friends,

They're probably already doing this, at the very least to scan for viruses and filter scammy emails.

> quietly delete them if they contain links...they don't approve of?

That's what a spam filter does.

> This would be illegal under net neutrality

a) ISPs aren't subject to net neutrality. They were, but now they aren't. Guess who voted to make it that way?

b) It would be a dick move and would cost the ISP a lot of business. Email is 1:1 and you (presumably) consented to receive email from your friends. But it isn't illegal afaik. Can you cite the relevant law you think makes this action illegal?

> is identical to what Twitter and Facebook are doing regularly.

Maybe, maybe not. It's not illegal. Considering that an ISP operates at the network layer and social networks operate at the application layer, such comparisons are meaningless. ISPs perform plenty of network-layer moderation that you never see and might never find out about.

Re: A tech antitrust problem no one is talking about: US broadband providers

#189

The problem is the proposed solutions really just entrench existing providers, specifically net neutrality policies: They legalize monopolies as long as they're "following the rules!" _You_ _cannot_ _legislate_ _good_ _behavior_ _into_ _monopolies_. So while I appreciate the spirit of Net Neutrality rules, the solution is fundamentally flawed. Let's say you want to open an ISP in your neighborhood. Based on their his…

> _You_ _cannot_ _legislate_ _good_ _behavior_ _into_ _monopolies_ Why not? Yes, breaking up monopolies is good but that doesn't mean we can't regulate industries before the point where things get so bad that there is enough political will to break them up.

I mean, feel free to provide an example where we successfully regulated a monopoly to encourage competition and consumer choice...

Re: A tech antitrust problem no one is talking about: US broadband providers

#190
post #141

I'm a bit of a weirdo but at the current time, my gigabit is provided by a company whose name histortically was associated with a monopolistic company (AT&T) but really was cobbled out of the bones of several large dead telecom companies and is now a monopoly again. It costs $100/month, is delivered by fiber straight to my house from a pole, works as described (in terms of latency and speed tests), and I don't want i…

That's great for you (no sarcasm!)

Where I live - in the city of Los Angeles, hardly distant, rural America - AT&T is happy to provide me "broadband" internet at speeds of up to 10mbps for the low, low price of $45 / month (with a 12-month contract!)

Ironically, I get faster speeds on my AT&T-powered iPhone.

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