[governance] [JNC - Forum] On the death of neo-liberalism

[bzs at theworld.com]

On June 2, 2016 at 16:04 milton at gatech.edu (Mueller, Milton L) wrote:
 > Barry 
 > 
 > > -----Original Message-----
 > > We broke up the AT&T monopoly in the US and now, for example, 4
 > > companies (Verizon, AT&T barely related other than in name, T-Mobile,
 > > Sprint) account for probably 90+% of the smart phone market.
 > 
 > Your facts are wrong about market structure and shares.
 > There are 4 or 5 wireless carriers in every US market except for a few extremely remote ones, where there are probably 2.

I believe that's what I said, we don't substantively disagree other
than in how we color the situation.

 > There are at least 2 broadband fixed carriers in 60-70% of US markets and here in Atlanta, there are 3 and a new 4th one (Google) coming. 

And in Boston there's one, unless one wants to argue that Verizon DSL
is a viable choice, only barely at this point.

For that matter my company still offers dial-up, ~8,000 locations
throughout the US (no Alaska) and Canada!

I believe the current status of a small handful of companies offering
both physical infrastructure and IP dialtone and other services, in
particular CATV companies offer content, amounts to in essence a
vertical trust.

As you note broadband infrastructure is expensive and that is only one
of the barriers to effective competition.

It's really little different from phone service 80 years ago, local
govts control and severely limit wire and other build-out by would-be
competing services, often for pragmatic reasons.

So broadband infrastructure, wired and wireless plant, amount to a
natural and often legal monopoly or very-small-N oligopoly much as we
had with phone service wire plants and even radio spectrum for that
matter.

HENCE!

My suggestion would be to divest the vertical trusts and separate
physical infrastructure from IP dialtone, services, and content
provision, inter alia.

Create regulated wire/wireless plant monopolies or small-N oligopolies
-- one could imagine different structures for different media -- who
are not allowed into the IP dialtone and content business and would be
required to open those plants to anyone who can pay the (hopefully
reasonable) fees for carriage.

Of course that and $3.25 will get me a venti at almost any Starbucks
on the planet earth.

-- 
        -Barry Shein

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