Jerry Brito

Cable competition apparently not working fast enough

Sunday’s Washington Post featured a story entitled, “Cable War Fails to Offer Rate Relief in Montgomery.” The gist of the story is that Comcast, the incumbent cable provider in Montgomery County, Maryland, is raising rates by 4 percent and residents are distraught that the much vaunted competition from Verizon has done nothing to curb prices.

So much for the idea that “competition will bring down rates,” said Montgomery County Council President Marilyn Praisner (D-Eastern County), who has long clashed with the industry over regulation. “That clearly hasn’t happened.”

David Isenberg links to the story under the headline “Benefits of Competition my Ass” and asks, “Are you listening Kevin Martin?”

You would think Verizon has been providing service in the country for years and has settled into a cozy duopoly with Comcast. So when did Verizon get permission from the county to start competing with Comcast? November 28, 2006. That’s right folks, less than three months ago.

As the Post story notes, Comcast serves 200,000 households to Verizon’s 1,000. However, it will build out to most homes in four years. The story also notes–albeit in paragraph 14–competition on margins other than price: “Comcast, for instance, has improved its Internet speeds four times over the past three years without increasing its prices.”

February 20, 2007 | Comments |

2 comments posted

  1. Posted by: Mark Tomin - 02/20/2007

    As it often happens customers don’t have a real choice. Rarely do both companies provide service in the same area. Obviously, competition isn’t working, if it did prices and speed wouldn’t be much different from the rest of the developed world.

    Nationwide Bandwidth provides quality and world class DSL, T1 and T3 lines at an amazing price.

  2. Posted by: Vic - 03/21/2007

    I am in disbelief. There’s something fundamentally wrong when the basic laws of supply and demand doesn’t even apply here. Consumers should not get the short end of the stick without even a say, but in this case, they do.

    T1 Buyer’s Guide

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