On Apr 24, 2014, at 9:57 PM, Larry Sheldon <larryshel...@cox.net> wrote:

> I just posted a completely empty message for which I apologize.
> 
>> Larry is confused. He can claim he is not, but posting to NANOG does
>> not change the facts. Then again, just because I posted to NANOG
>> doesn't prove I'm right either. Worst of all, this thread is pretty
>> non-operational now.
> 
> In a private message I asked if he could name a single monopoly that existed 
> without regulation to protect its monopoly power.

In my neighborhood, Comcast has a monopoly on coax cable tv and HFC internet 
services. There are no regulations that support that monopoly. Another company 
could, theoretically, apply, receive permits, and build out a second cable 
system if they wanted to. However, the population density is such that even if 
that company captured 50% of the market, it would merely make the market 
economically unviable for both companies.

In such instances, you do indeed have “natural monopolies” which are an 
economic construct, not a regulatory artifact.

>> Besides, what has this to do with my original questions?
> 
> Which were "Anyone afraid what will happen when companies which have 
> monopolies can charge content providers or guarantee packet loss?" and "How 
> is this good for the consumer?" and "How is this good for the market?"
> 
> My answer was an attempt to say that if you don't have any government 
> entities allowing and protecting (two pretty much interchangeable terms, I 
> prefer the latter) monopolies the answer to the first question is "Huh?  
> What?" and to the second and third "Best service for the best price is pretty 
> good for everybody.  Except the losers that can't rip you off without the FCC 
> protection.”

How, exactly, are the governments protecting the monopolies of ILECs and Cable 
companies? It seems to me that it’s more a case of those monopolies persisting 
because the non-regulatory (largely economic) barriers to competition are large 
enough that they prevent viable competitors from forming. Allowing those 
unregulated monopolies to subsequently leverage that into a “content protection 
racket” is the internet equivalent of turning a regulatory blind eye to more 
traditional forms of extortion.

So, no, eliminating the government’s protection of monopolies (wherever you 
think that is occurring) will not solve the more general problem of monopolies 
that are a problem without government protection.

Owen

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