TELECOM Digest OnLine - Sorted: Re: Broadband Competition Must Surely be Working

Re: Broadband Competition Must Surely be Working

Tony P. (
Sat, 27 Aug 2005 14:35:05 -0400

In article <>, says:

> In article <>,
> <> wrote:

>> So, if a telecom provider wants to bundle services, why shouldn't it?

> Because the market for residential communications services cannot
> support what economists call "effective competition". The barriers to
> entry in "local loop" services are so high that allowing bundling
> stifles competition on the services built on top.

> What should have been done back in 1984, and wasn't, is the unbundling
> of outside plant from telephone service (with both by preference
> provided by separate companies). By the late 1990s, most states
> understood this, and implemented a similar model for energy
> deregulation: you buy your energy from a competitive supplier, who
> then must contract with a regulated distribution company to deliver it
> to you.

Here in Rhode Island they broke the electrical distribution network
from the generating plants.

Have our bills gone down, even discounting increased fuel costs? No.

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