Canadian ISP Co-Op Shows Upside of Line Sharing
Golden Gael writes "The FCC got rid of mandatory line sharing in the US a few years ago, but it's alive and kicking in Canada, and an interesting article at Ars Technica looks at what can happen when there's vibrant broadband competition. 'Wireless Nomad does things a little differently. The company is subscriber-owned, volunteer-run, and open-source friendly. It offers a neutral Internet connection with no bandwidth caps or throttling, and it makes a point of creating wireless access points at the end of each DSL connection that can be used, for free, by the public. Bell Canada this is not.' The ISP has some ambitious plans for the future, including getting involved in WiMAX."
I live in a city of over half a million people. Last night I spent about 40 minutes trying to find out what my broadband options are. Nobody is upfront; it was incredibly difficult to determine even how much each service will cost after the teaser rates expire, especially if you don't want bundled local telephone or cable TV. Next, try to determine what DSL speed you'll get at your house, or what the upstream bandwidth for cable is. You can't. Just lots of stupid marketing fluff and "congratulations! Satellite Internet is available in your area!" type garbage. In the end I gave up, it didn't look like I have any real option besides what I have now - Comcast (which is good but too expensive, especially since I don't really want cable TV any more). I am sick of everybody pretending the free market is at work so everything is great. It isn't.
Just thought I'd point that out. Internet here is quite pathetic, but it's not strictly a free market problem. It's more a general population problem which is amplified by having a free market environment.
No, it's not a "general population problem"; ignorance is economically rational because obtaining information has costs associated with it. Furthermore, it's part of a free market that sellers take advantage of this to charge more than they would if people had complete information.
When you balance out all these effects, it means that a regulated market can sometimes operate more efficiently than a free market. That's why regulating cell phone and cable markets may make sense.
The only "problem" with any of this is that laissez-faire free market proponents don't know their economics and propose bad economic policies.