The thing is there are no pure telecoms anymore. There’s a company that maintains underground infrastructure and gets paid when that infrastructure is used, and is incentivised to upgrade the infrastructure because they make more money if it’s used more.
And there are thousand of companies that benefit from the infrastructure, and they can charge customers pretty much whatever they want… though it better not be an excessively high price because every ISP, even a tiny one with a single employee, can provide service nationwide at the same raw cost as a telco with tens of millions of customers.
The difference between what we have done, and net neutrality, is our system provides an open book profit motive to upgrade the network. Net Neutrality doesn’t do that.
Fundamentally there is a natural monopoly in that once every street in a suburb is connected, then why would anyone invest in digging up the footpath and gardens to run a second wired connection to every house? The original provider would have to provide awful service to justify that, and they can simply respond to a threat of a new network by improving service just enough (maybe only temporarily), for that new investor to run for the hills.
Net Neutrality stops blatant abuse. But it doesn’t encourage good behaviour. Our NBN does both.
The thing is there are no pure telecoms anymore. There’s a company that maintains underground infrastructure and gets paid when that infrastructure is used, and is incentivised to upgrade the infrastructure because they make more money if it’s used more.
And there are thousand of companies that benefit from the infrastructure, and they can charge customers pretty much whatever they want… though it better not be an excessively high price because every ISP, even a tiny one with a single employee, can provide service nationwide at the same raw cost as a telco with tens of millions of customers.
The difference between what we have done, and net neutrality, is our system provides an open book profit motive to upgrade the network. Net Neutrality doesn’t do that.
Fundamentally there is a natural monopoly in that once every street in a suburb is connected, then why would anyone invest in digging up the footpath and gardens to run a second wired connection to every house? The original provider would have to provide awful service to justify that, and they can simply respond to a threat of a new network by improving service just enough (maybe only temporarily), for that new investor to run for the hills.
Net Neutrality stops blatant abuse. But it doesn’t encourage good behaviour. Our NBN does both.