There is a lot of discussion in recent yeas about deregulation of public utilities, specificaly telephone, internet, and electric power. These are all monopolies because there is too much infrastructure for competition to be feasible. But when they are deregulated, to allow competition, the existing companies own the wires, and they have to charge the new competitors to distribute against them. The result is either that they are not allowed by law to charge a fair price, or they don't allow the competition access on a fair and equal basis.
I have a solution. The only part of the business that needs to be a monopoly is the wires. All the wires should be owned by one company, and they should charge all service providers by the same rates. It might be megabyte-miles for data, and kilowatt-miles for power. This wire company would want to innovate to cut costs, and for example they would work with service providers to move telephone service to cable, or fiber optic in the near future. There are companies developing technology to transmit broadband signals over power lines.
That is another reason to combine all the wires into one company. Now we have phone, cable, and power on seperate wires. Virginia Power owns most of the poles in my area, and they lease them to the others.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment