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nipsip

Modern Day Robber Barons

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There is zero competition for internet access, as in none, nothing, zero. It is a wasteland where only the prices grow and Americans are getting the shaft, as in paying far too much for too little to the likes of AT&T, Comcast and Verizon.

 

Think about this. 70 percent of American households have but one or two choices for high-speed internet access: cable broadband from a cable provider or DSL from a telephone provider. Comcast controls 40 percent of the households in 19 out of the 20 largest markets and has no idea what competition is.

 

Why does this matter and why is it political? Simple, the robber barons have big plans to close and control the internet through additional fees, pay-to-play schemes, and because of their sheer brutal size, they will have an oligarchy, except for one thing. The internet is nothing more than a utility and not a luxury or a choice if you live and participate in the modern economy, it’s a requirement just like water and electricity, however that is not the way the robber barons see it. They want you to believe that they are providing specialized services that are somehow different than water, power, and telephones.

 

They are not and just like a utility, it should get better and faster and cheaper over time. Anyone who says otherwise is lying for money.

 

Problem is that there is no competition and the same goes for mobile communications. There are only four major national carriers, most of whom run incompatible networks and all of which are stronger in various regions. If you hate your Sprint or Verizon service, switching to AT&T or T-Mobile is anything but simple and probably requires paying off a two-year contact or getting charged for your phone they gave you at a discount and now you have to pay an inflated retail price for.

 

if anyone tries to tell you that mobile broadband is somehow competitive with wired service, I got news for you, that person is a cable industry lobbyist.

 

If there was real competition, then Americans pay more for these slower wireless speeds than anyone else in the world. Shocker, I know, but true. In Europe, want to switch a phone, no problem just take the sim card out and put a new one in. Europeans pay just over $1 per Mbps of speed. In the US, you cannot take your expensive handsets elsewhere, so AT&T and Verizon charge around $4 per Mbps each and Sprint charges $7.50. We also pay 4X as much for a package that has internet, cable and phone than they do in Europe where it costs ~$40 a month for a similar package where you get 10 times faster at downloading information and 20 times faster uploading with the internet.

 

I could go on and on about pricing and speed of both, however you get the point and the only politician that has gone public and is on your side is Obama.

 

 

Yesterday:

 

"The Federal Communications Commission, Mr. Obama said, needs to adopt the strictest rules possible to prevent broadband companies from blocking or intentionally slowing down legal content and from allowing content providers to pay for a fast lane to reach consumers. That approach, he said, demands thinking about both wired and wireless broadband service as a public utility."

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Well, when another company has the innovation and resources to enter the cable/data market, then there WILL be competition. Until then, there is NO NEED for government to be meddling in private business affairs.

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Well, when another company has the innovation and resources to enter the cable/data market, then there WILL be competition. Until then, there is NO NEED for government to be meddling in private business affairs.

 

...and you can continue to pay and pay and pay higher and higher prices for internet, cable and phone. We already pay at least 4X what other nations pay for the lowest speed because there is no competition, an oligarchy exists.

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Quote:

Originally Posted by nipsip View Post

...and you can continue to pay and pay and pay higher and higher prices for internet, cable and phone. We already pay at least 4X what other nations pay for the lowest speed because there is no competition, an oligarchy exists.



too big to fail,



too big to compete against....


runs contra to the principles our Country was founded upon.


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“Profit margins are probably the most mean-reverting series in finance, and if profit margins do not mean-revert, then something has gone badly wrong with capitalism. If high profits do not attract competition, there is something wrong with the system and it is not functioning properly.” – Jeremy Grantham, Barron’s

 

“You know, someone once told me that New York has more lawyers than people. I think that's the same fellow who thinks profits will become larger than GDP. When you begin to expect the growth of a component factor to forever outpace that of the aggregate, you get into certain mathematical problems. In my opinion, you have to be wildly optimistic to believe that corporate profits as a percent of GDP can, for any sustained period, hold much above 6%. One thing keeping the percentage down will be competition, which is alive and well.” – Warren E. Buffett

 

Right now corporate profit margin is about 10.4% of GDP and is at an all time high. 2 std deviations of mean is 9.7%

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Google is in the industry now, and it will be years before their service is widely available even with their endless billions to pour into it. It's not like Joe Schmo can just decide he wants to compete with Comcast one day.

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It's not like Joe Schmo can just decide he wants to compete with Comcast one day.

Currently I am in the process of removing Comcast or other cable providers from my home.

I am using wireless Internet data (AT&T = already regulated) plus whatever streaming apps I can use with my smart TV.

I have TV ala carte whther Comcast agrees with it or not.

 

Some Schmoe out there will come up with a way of transmitting as well as receiving over satellite in short order. HughsNet started it, but it needs to be finished.

If I were Comcast and seeing the potential threat to market share posed by satellite + Internet, I'd be all aboard the net neutrality band wagon.

 

Peace love dope

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Currently I am in the process of removing Comcast or other cable providers from my home.

I am using wireless Internet data (AT&T = already regulated) plus whatever streaming apps I can use with my smart TV.

I have TV ala carte whther Comcast agrees with it or not.

 

Some Schmoe out there will come up with a way of transmitting as well as receiving over satellite in short order. HughsNet started it, but it needs to be finished.

If I were Comcast and seeing the potential threat to market share posed by satellite + Internet, I'd be all aboard the net neutrality band wagon.

 

Peace love dope

 

It is the internet that these oligarch control. Even if you do away with cable you still need internet for ROKU or any other 3rd party device. Good luck with that satellite internet.

 

http://goo.gl/dv48EJ

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Quote:

Originally Posted by SallyGrowler View Post

I am using wireless Internet data (AT&T = already regulated) plus whatever streaming apps I can use with my smart TV.

 


I hope you have unlimited data.


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Capitalism at work per Warren and Jeremy:

 

WSJ Nov. 6th:

Pay-TV 'Cord Cutting’ Accelerates

Subscriber Defections Begin to Hit Satellite TV; Price of Bills Cited

 

The pay-TV industry contracted in the third quarter at a faster pace than a year earlier, signaling that “cord cutting” is accelerating as more consumers drop cable and satellite-TV connections.

 

Overall, the pay-TV industry lost about 179,000 TV customers, a steeper loss from the decline of 83,000 in the year-earlier quarter, according to public company reports and estimates from Wall Street research firm MoffettNathanson LLC. Already, more homes and businesses have dropped pay-TV service in the first three quarters of this year than in the whole of last year, MoffettNathanson estimates.

 

Subscriber defections came at all the major cable and satellite-TV providers, including Comcast Corp. and DirecTV . On Thursday, Cablevision Systems Corp. said it lost 56,000 video customers, bringing its total to roughly 2.7 million.

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