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It's actually sort of the opposite here. Telecom's let cable companies beat them to the broadband market. So cable internet companies are the market leaders. And telecoms are ceding the market to them and just taking whatever they can get without investing too much.

Verizon Fios is a good example, they built it to compete with cable, but they still can't get more marketshare (in overlapping markets). It's barely profitable.

Telecoms don't think it's worth investing to challenge the cable monopoly.



I think this speaks more to interconnection, like water and power and sewer, and even human (car, sidewalk, etc) transport, being natural monopoly networks for the "last mile".

Competition would still be possible on top of this network, just like you can have different delivery companies.


The government allowed them to re-consolidate. So now it makes more sense to milk higher margin wireless service.


If consolidation had anything to do with it, wouldn't you expect exactly the opposite result? Companies to see higher margins in the monopoly wired market instead of the wireless market where they have more competition?


The wired market is regulated, so they can't just raise prices over time like they do with wireless.

They were successful in lobbying state utility commissions to push out maintenance on the wired network and provide more cash flow to buy spectrum.

None of this stuff was an accident. The only way fiver will expand is if the government pays for it.


Cable companies and telecoms aren't consolidated. The problem is telecoms don't want to spend oodles of money only to make very little profit because the cable companies are already entrenched.




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