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Thursday, January 8, 2009
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Captive markets

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This is the problem with captive markets. In many areas, customers have no alternative to one provider. In our area it is Time Warner. With no competition, Time Warner is free to impose whatever rules they wish and provide whatever service level they feel meets their own needs, instead of the needs of their customers. So by charging by bandwidth they not only increase their revenues without increasing their rates, but they also get to provide less service and call it progress. I am not usually a fan of big government, but this might be an argument for classifying internet service providers as public utilities, and regulate them like power and telecom companies.

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