1 hour ago, Scouting Ninja said:
This has happened a million times in history. Some one has a monopoly, pulls some radical move like this then suddenly there is a opening for competitors. A lot of the large companies, including Apple, started as competitors like this.
You can only push people that far and there is always someone looking for a way to make money.
Absolutely. I don't disagree with the basics of this.
That said, there are some caveats. I'm assuming you're American, based on this and previous threads. What part of America do you live in? I'm not sure if you knew this, but some parts of the US only have one ISP. And they have very different treatment from places where there is competition. There are data caps in those plans for those areas, and the customers are charged for any usage above those data caps. The only reason ISPs do this is because they know that the customers have no choice but to buy Internet from them in those areas.
Typically, yes, stupid things like throttling, etc. would easily cause competition to come in and blow the market ruler away. But there are cases where a thing known as a natural monopoly can exist. It's pretty much what it sounds like: the service/product in question is such that it favors only one or two companies/organizations providing it.This is typically due to high fixed costs, high barrier to entry, high initial investment, etc. The biggest example given of a natural monopoly is usually that of utilities. Water and electricity, for example. You can't have multiple electricity companies compete in one market for a particular area because of how impossible that sounds to implement in practice. Imagine having tons of electrical lines running around. The major reason is typically because of the high barrier to entry. Setting up an electrical grid is expensive. Once it's already set up, adding more customers is easy. It lends itself to being a natural monopoly.
ISPs are very very similar and can/should be considered natural monopolies. There's a pretty high barrier to entry for becoming an ISP, since one needs to set up the internet infrastructure to service people. It's pretty easy for bigger companies to basically maintain market control in most regions. It's not that innovation is impossible, it's just tough and unlikely in this scenario. It certainly can happen, especially if someone comes up with an entirely new and novel way of reaching customers. The scenarios are much more limited in this case, however.
ISPs are very similar to utilities and should be regulated as such.
This isn't to say that ISPs will suddenly go nuts once net neutrality is repealed. However, the incentives come into place for small incremental changes over time that nobody will notice. Or even bigger changes in certain areas. That's my major concern with the repeal of net neutrality.
Again, let's see what happens. This doesn't necessarily need to all happen.