Tag: "duopoly"

Posted December 20, 2017 by lgonzalez

On December 14th, FCC Chair Ajit Pai and the Republican Commissioners voted to present a huge holiday gift to big ISPs by dismantling network neutrality, despite outcries from the American people. When we examined FCC data to determine how many Americans would be left without market protections from known network neutrality violators, the numbers were discouraging. Now we’ve reached into the weeds to analyze the numbers on a statewide basis. 

Percentage Of Population

The results reveal that a significant percentage of Americans will be limited to Internet access only from large monopolies that have a history of violating network neutrality and very strong incentives to abuse their market power. 

Some states with higher population benefit slightly from competition relative to others — compare Florida’s 40 percent to 65 percent in Pennsylvania — but this also reflects the anti-competitive nature of big ISPs that tend to cordon off sections of the country and respectfully stay within their zones. Other, more rural states, such as Wisconsin at 66 percent, have few options because national ISPs just aren’t interested in serving areas where population is sparse and the pay-off is a long time coming. Lack of competition means high probability of service from one of the big four known violators in our study — AT&T, Verizon, Comcast, and Charter.

In this chart, we've listed states in order of greatest percentage of impacted population: 

...
State Population Served Only By Big 4 Net Neutrality Violators
Read more
Posted April 3, 2017 by lgonzalez

“Monopoly” may be a fun family night activity, but if you live in a place where you have little or no choice for Internet access, it’s not fun and it’s not a game.

According to FCC data, most families don’t have a choice in Internet access providers, especially providers they like. Nevertheless, the biggest companies keep reporting increasing revenues every year. People aren’t happy with the service they’re receiving, but companies like AT&T and Comcast continue to thrive. What’s going on?

In a recent State Scoop piece, Christopher wrote: 

[T]he market is not providing a check to AT&T or Comcast power. They are effectively monopolies — and as we just saw — can translate their market power into political power to wipe out regulations they find annoying.

At the Institute for Local Self-Reliance, where we work to support local economies, this broken market is a major problem. Cable monopolies are bad for local businesses, which become less competitive from paying too much for unreliable Internet access. Communities cannot thrive without high quality Internet access today. 

We created this infographic to present the evidence showing that the market is broken. This resource also discusses why creating more competition in the current market is such a challenge. An effective way to overcome this broken market, however, is to consider what hundreds of local communities are already doing - investing in publicly owned Internet infrastructure. Our infographic offers a few examples of different models, each chosen to suit the communities they serve.

Get a larger version of the infographic here

market-broken-infographic-small-2.png

Get a larger version of the infographic here.

Kudos to intern Kate Svitavsky who created the infographic.

Stay up to date on community networks with our newsletter.

Posted February 3, 2016 by lgonzalez

Check out this new video from the Competify coalition. The short 2-minute feature introduces viewers to Mr. and Mrs. Broadband Monopoly, who are clearly suffering from "chronic broadband access control."

Meet Mr. and Mrs. Broadband Monopoly

Competify focuses on raising awareness about the long term damage caused by lack of high-quality Internet access competition. Our livelihoods suffer when a small number of huge corporate telecommunications providers control connectivity. The coalition provides hard information on how these de facto monopolies and duopolies negatively impact our lives and how a more competitive environment can help.

Here is a statement from Competify and the Partners for the Cure:

The largest data collection ever conducted by the FCC and almost a decade of advocacy by those throughout the broadband economy have finally brought us to this long-awaited milestone — the FCC’s review of the high-capacity broadband market. As the incumbents struggle to come to terms with the fact that their own behavior has given them chronic broadband access control, they seem to be trying to blame the high-capacity broadband lines they sell for their very own conduct. Here at COMPETIFY, we have a message for those critical high-speed broadband lines: from powering schools and libraries to 5G to the Internet of Things, we think you are pretty “special.” And today is a major step toward your freedom.

It’s important to note that a very common symptom of chronic broadband access control is confusion. Indeed, the large incumbent companies have gone to great lengths to explain why the lines providing vital broadband service to our businesses, hospitals, schools, government buildings, banks and countless other indispensable institutions are “not very special anymore” and are “obsolete.” By all means, if those interests insist on that point of view, then they should have no concerns whatsoever about this proceeding, as they have obviously moved on to more “special” technologies.  In the meantime, the rest of the broadband economy anxiously awaits the FCC’s efforts to finally cure this diseased marketplace.

Visit the Competify website to learn more and to sign the...

Read more
Posted January 28, 2014 by christopher

When we think about the threat of monopoly, we almost always focus on how monopolies can raise prices beyond what is reasonable. But there are many threats from monopolies and many are much more dangerous to a free society than higher prices. This week, monopoly expert Barry Lynn joins us for the Community Broadband Bits podcast.

Lynn is a senior fellow at the New America Foundation and author of a book that I recommend very highly - Cornered: The New Monopoly Capitalism and the Economics of Destruction. Buy it a local bookstore or from an independent bookstore online.

We discuss whether companies like Comcast are correctly termed "monopoly" when they face some nominal competition and what the threat from monopoly is. Barry explains how both political parties have encouraged centralization even as both parties have had vocal opponents of such policies. And finally, we discuss how policies dealing with monopoly now are fundamentally different than they were for the vast majority of American history.

This is a great discussion - one of the most important we have done. You can read a transcript of our discussion here.

We want your feedback and suggestions for the show - please e-mail us or leave a comment below. Also, feel free to suggest other guests, topics, or questions you want us to address.

This show is 20 minutes long and can be played below on this page or via iTunes or via the tool of your choice using this feed.

Listen to previous episodes here. You can can download this Mp3 file directly from here.

Find more episodes in our podcast index.

Thanks to Haggard Beat for the music, licensed using Creative Commons.

Posted September 24, 2013 by christopher

For my money, the best headline of last week was "The U.S.'s crap infrastructure threatens the cloud." The rant goes on to explain just how crummy our access to the Internet is.

As a patriotic American, I find the current political atmosphere where telecom lobbyists set the agenda to be a nightmare. All over the world, high-end fiber is being deployed while powerful monopolies in the United States work to prevent it from coming here. Some of those monopolies are even drafting "model legislation" to protect themselves from both community broadband and commercial competition.

He nails a number of important points, including the absurdity of allowing de facto monopolies to write the legislation that governs them. However, Andew Oliver's article is a bit muddled on the issue of "monopoly." I have argued with several people that the term "monopoly" has historically meant firms with large market power, not the more stringent definition of "the only seller" of a good. It is not clear how Oliver is using the term.

Because of this confusion, you can come away from his piece with the firm idea that it is primarily government's fault we have a duopoly of crap DSL and less crappy cable. He repeatedly says "state-sponsored monopolies." However, no local or state government may offer exclusive franchises for cable or telecom services and the federal government hasn't officially backed monopolies for decades.

This is a key point that many still fail to understand - a majority seem to believe that local governments bless monopolies when local governments actually are desperate for more choices. This is why they fall all over themselves to beg Google to invest in their community or they build they own networks (over 400 communities have wired telecom networks that offer services to some local businesses and/or residents).

Poor laws and regulations have helped the massive cable and telephone companies to maintain their status - that is why they spend so much on lobbying and political contributions at all levels of government. They want to and have successfully corrupted the process, neutralizing the power of government to protect consumer interests and prevent a few firms from dominating the market.

...

Read more
Posted August 8, 2012 by lgonzalez

A major difference between Main Street and Wall Street is that we view Comcast's lack of competition as a major problem. The prospect of Comcast increasing our rates year after year makes us want to scream. Prepare to scream. Or throw things.

The Lafayette Pro-Fiber Blog alerted us to a piercingly honest analysis from Wall Street. The article on SeekingAlpha.com, titled We-re Big Fans Of Comcast's Cash-Flow Generation captures one of the major policy failures of our time:

Comcast's traditional Cable Communications continues to grow and generate copious cash flow. Video revenue, Xfinity and other cable TV products, grew 2.8% to $5 billion, while High-Speed Internet revenue grew 8.9% to $2.4 billion. We're big fans of the firm's Video and High-Speed Internet businesses because both are either monopolies or duopolies in their respective markets. Further, we believe that both services have become so sticky and important to consumers that Comcast will be able to effectively raise prices year after year without seeing too much volume-related weakness.

Wow.

SeekingAlpha.com, describes itself as "…the premier website for actionable stock market opinion and analysis, and vibrant, intelligent finance discussion."

We want to empower local businesses and communities to control their own destiny. Monopolistic telecommunications companies, with their Goliath market share, Wall Street priorities, and armies of lobbyists continue to attack local control and self-reliance. They are extracting assets from Main Street and shipping it to Wall Street.

Yet we see the FCC, Congress, and many states pretending that the public interest is best served by giving more power to these massive companies. And we will continue to hear industry-funded think tanks claiming that broadband has robust competition and should be subject to less public oversight. Coming soon to an op-ed page near you.

Photo courtesy of JSquish via Wikipedia Commons

Subscribe to duopoly