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Commerce Department Broadband Chief Looking For Better Competition In Market
By John Vinson
Expert Author
Article Date: 2010-01-08
It's a widely known fact: Competition is good for innovation. The best way to evolve a business is making sure there's someone who they have to be better than. This is good for the company, the consumers, and the evolution of technology in general.
The National Telecommunications and Information Administration (NTIA), recently wrote a letter to the FCC urging for healthier competition.
The letter stated the lack of competition in the current market. The problem with the level of competition, is that at most, there are two to three carriers available to consumers in a given area. Many times there isn't even two. This low level of competition isn't health for improvement, and can be a heavy burden on consumers.
The NTIA letter states, "Locally, where residential consumers make their purchasing decisions, they frequently have limited, and often no, choice among broadband Internet access service providers. The Commission's recent Broadband Status Report indicates that "[a]t most two providers of fixed broadband services will pass most homes."
A rather upsetting statistic found in the letter is that 50-80 percent of homes in the US only have one option for speeds they need for broadband connection. You can guess how this deludes and inflates local markets.
The NTIA makes a couple of suggestions which could potentially shoe horn in competition. The idea seems like it could be met with opposition. The letter suggests heavy funding, and research into wireless networks. On top of that, the NTIA states, "The Commission, of course, has a long-held preference for advancing regulatory goals through structural regulation designed to expand competition in communications markets"
In regard to the duopoly markets, regulation into how these markets react could be a potential solution, "We urge the Commission to examine what in many areas of the country is at best a duopoly market and to consider what, if any, level of regulation may be appropriate to govern the behavior of duopolists."
It's uncertain if any of these ideas will be used. However, the NTIA does have a point about competitive markets. The question remains, if competition can't naturally happen, where and how should the FFC intercede?
About the Author:
John is a staff writer for WebProNews.
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