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FCC Can Define Markets With Only One ISP as 'Competitive', Court Rules (arstechnica.com)

An appeals court has upheld a Federal Communications Commission ruling that broadband markets can be competitive even when there is only one Internet provider. From a report: The FCC "rationally chose which evidence to believe among conflicting evidence," the court ruling said. The FCC voted last year to eliminate price caps imposed on some business broadband providers such as AT&T and Verizon. The FCC decision eliminated caps in any given county if 50 percent of potential customers "are within a half mile of a location served by a competitive provider." This is known as the "competitive market test." Because of this, broadband-using businesses might not benefit from price controls even if they have just one choice of ISP.

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  1. Ignorance proven by mysidia · · Score: 5, Insightful

    50 percent of potential customers "are within a half mile of a location served by a competitive provider."

    WTF? Has the government been proceeding with their ears plugged for the past decade?
    The whole issue is The last mile problem

    A competing provider is not going to travel Half a Mile to try and grab another provider's customers ---- buildout is so extremely expensive that typically there is a tacit agreement between so-called "competitors" that they will stay away from other providers' turf.

    Just TRY and get a cable company to service you whose nearest line is 1/2 a mile away.
    Extending service by 1/2 mile of thickline is something like $30,000+ in a suburban/rural area, and potentially half a million or more in build costs to run the additional cable in an urban area ---- thus they aren't inclined to build, especially when the consequence is violating a de-facto unwritten informal but anti-competitive agreement b/w neighboring providers that risks causing revenue loss from losing other customers.