[Talk]: Net Neutrality II

Well, I’m quite surprised to hear that kind of speech from you. – Doubting the omnipotence of the free market and such.

Now, to topic. In a free market it should naturally be in the best interest of any company to provide a good product, so that the customer is willing to buy it. But with the selling of internet access (and traffic) this doesn’t really seem to be the case. So one would think, that a competitor would take adantage of such a situation and step into the gap and supply the customer with what he really wants and therefore earn lots and lots of money. So why isn’t this happening?

In my opinion, there are two problems:

Firstly the current suppliers all don’t seem to be interested in competing with their competitors by selling a better product. – Hell knows why. And secondly I believe, the problem lies with the infrastructure. Only cable and phone companies have the infrastructure to supply broadband internet, and it is simply not profitable to start a new company, if you first have to invest too much money just to get the infrastructure. Of course, you could try to negotiate with the cable and phone companies over usage rights for their cables, but they’re naturally not interested in sharing the market with you. So I guess it is a situation where, at the moment, the free market doesn’t seem to be functioning. So it’s basically a natural monopoly (or how ever you economists call such a thing.)

So what to do about it?


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