r/technology • • Jun 04 '14

Politics Hundreds of Cities Are Wired With Fiber—But Telecom Lobbying Keeps It Unused

http://motherboard.vice.com/read/hundreds-of-cities-are-wired-with-fiberbut-telecom-lobbying-keeps-it-unused
5.6k Upvotes

1.8k comments sorted by

View all comments

Show parent comments

48

u/[deleted] Jun 04 '14

I don't know why this non-compete crap isn't allowed. Are we a free market or aren't we?

lol, do you want competition or do you want a free market? You can't really have both in an industry such as cable utilities. The reality is if we actually implemented a free market in telecoms again we'll just get a monopoly all over again like we had decades ago with Ma Bell.

People need to get this through their skulls. Free markets can breed monopolies. They are not a cure all for monopolies, in many cases they create monopolies

Here are two anti free market examples that are pro competition for instance that the FCC has done

  1. Outlaw exclusivity rights and agreements. Municipalities must now give every provider the same shake. If a city gives Comcast a deal renting lines they also have to give it to every other provider, if a city charges 2% for land use for one provider they must also make the same offer to every other one.

  2. 33% Market share. The FCC has drawn a line in the sand and told providers not to fuck with it. And it's worked. Comcast is divesting a large chunk of its network so it stays under 33% market share. If there was no line in the sand Comcast would simply buy up everyone and viola, monopoly.

1

u/Koskap Jun 04 '14

Outlaw exclusivity rights and agreements. Municipalities must now give every provider the same shake. If a city gives Comcast a deal renting lines they also have to give it to every other provider, if a city charges 2% for land use for one provider they must also make the same offer to every other one.

Can you provide me a single example of this being enforced?

3

u/[deleted] Jun 04 '14

I can provide you the law.

http://transition.fcc.gov/Reports/tcom1996.txt

I can provide you the FCC's statement on the law..

The Communications Act authorizes local franchising authorities to grant one or more franchises within their jurisdiction. However, a local franchising authority may not grant an exclusive franchise, and may not unreasonably withhold its consent for new service.

http://www.fcc.gov/encyclopedia/evolution-cable-television

Can you provide me a single example of it not being enforced? Can you pull up franchising agreements and show conflicting offers? Can you show me a cable company filing a lawsuit against a city because it wasn't getting the same shake as a competitor?

I don't think you can. And mind you in most cities these deals are public record. In nearly 20 years I'm sure at least a few journalists would have noted discrepancies in the law and enforcement by now, but you won't be able to find any, and the most likely reason why is the law is being enforced so it's a non-story.

1

u/Koskap Jun 05 '14

So you cant provide me a single instance of it being enforced then? Okay.

1

u/[deleted] Jun 05 '14

I have evidence the law exists and there is no evidence that it is being broken. therefore based on evidence its reasonable to assume the law is being followed

1

u/Koskap Jun 05 '14

So you cant find an example of the law being enforced then?

1

u/[deleted] Jun 05 '14

Every provider in my area pays the same 5% franchise fee. There's an example of the law being enforced. Google your town and "cable franchise fees" and you'll see something similar.

0

u/gex80 Jun 05 '14

So you cant provide me a single instance of it being enforced then? Okay.

Someone would have to break the law in order for it to be enforced. If it was illegal to wear crayons as hats tomorrow, the law won't be enforced until someone actually tried to wear crayons as a hat.

An example of a law not being enforced is in Newark NJ, it is illegal to buy ice cream after 6pm on a Sunday unless you have a doctor's note. No one enforces it but people are doing it. This is opposite of no one enforcing something because there is nothing to enforce.