Capitalism vs Competition

In theory,  the thing that makes capitalism work is competition. When competition is alive and well, it balances the normal drive of capitalist companies to maximize profit. In short, you get a healthy economic system, one that works well with human nature.

But what happens when those companies can avoid competition? Or become so powerful they can stifle competition altogether?

The answer can be found in the link below:

http://venturebeat.com/2014/09/01/how-big-telcos-are-smothering-city-run-broadband-services/

In the US, small to medium sized cities that are NOT serviced by the big communications companies [because they are too small to show a profit] can offer their residents a non-commercial broadband network. This network is often faster than that offered by the big telcos.

In the Venturebeat article, we see what happens when the big telcos get worried by competition from these non-commercial networks. Not pretty.

Things are different here in Australia, but only because we are behind the times. I truly wish our municipal councils offered high speed broad to the homes in their areas. That would be a fantastic innovation. We can but hope.

cheers

Meeks

 

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About acflory

I am the kind of person who always has to know why things are the way they are so my interests range from genetics and biology to politics and what makes people tick. For fun I play online mmorpgs, read, listen to a music, dance when I get the chance and landscape my rather large block. Work is writing. When a story I am working on is going well I'm on cloud nine. On bad days I go out and dig big holes... View all posts by acflory

6 responses to “Capitalism vs Competition

  • davidprosser

    I can’t understand how a private company could affect such influence on the lawmakers of a State to have legislation enacted that goes against the benefit of the people of the state. Those who voted for such legislation should be voted out and future incumbents should be made to state publicly they will vote to quash such legislation if they are elected.
    It’s time we looked Worldwide about allowing companies to become so big they effectively crush all opposition. Where’s the competition in that?
    xxx Massive Hugs xxx

    Like

  • chrisjames282

    Good story Meeks, thanks for sharing. God bless unfettered capitalism! 🙂

    Like

  • EllaDee

    Your last para sums up so well my competing feelings on this subject… Rant warning…
    Internet in Australia is a sad joke. iinet’s website states “Australia’s average internet speed is slower than Slovakia’s”… haha funny until you want internet in a country area that makes up the statistically acceptable small area with no avaibale coverage but is really quite a significant area and a real issue for actual residents. Despite the bloody big aerial we purchased and installed on the roof the mobile broadband waves still don’t effectively connect at our house at Taylors Arm [plugged into the aerial we get 3G data to our 4G phones mostly but not to the Telstra mobile broadband laptop modem] but properties where the have full mobile broadband coverage are in frustratingly within viewing distance.
    Then there’s the not so wonderful NBN which I’m advised “Sorry, your address doesn’t appear NBN ready”. Telstra offers ADSL broadband at exhorbitant costs even more offensive than their mobile broadband costs. Am I bitter? Youbetcha. Given our communal reliance on the internet, it should be available to every household for a reasonable cost. There’s no excuse for people to be disadvantaged but like everything else, the answer is power and money in the hands of people who have power and money…

    Like

    • acflory

      -sigh- Amen. For a short while we looked as if we’d finally leap ahead of the pack, at least in terms of broadband access. Now we haven’t even got anything rolled out and already we’re waaaaaay behind again.

      Call me a conspiracy theorist but I wonder just how much Telstra is raking in my having its copper network remaining the ‘connector’ between homes and the fibre optic network to the hub or whatever it’s called.

      That’s like having a Ferrari deliver your mail to the end of the street and then having a geriatric using a walking frame collect it from there and distribute it to each house.
      [Apologies to all those who have to use walking frames]
      -sigh-

      Like

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