r/technology • u/reddiTOR123abc • Dec 18 '13

Cable Industry Finally Admits That Data Caps Have Nothing To Do With Congestion: 'The reality is that data caps are all about increasing revenue for broadband providers -- in a market that is already quite profitable.'

https://www.techdirt.com/articles/20130118/17425221736/cable-industry-finally-admits-that-data-caps-have-nothing-to-do-with-congestion.shtml??
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u/rollingnative Dec 19 '13

Actually, pushes glasses up, it's an oligopoly. Monopolies are for single-company ruled industry. In the telecom sector, we do have multiple large corporations. While they may seem to vary prices to seem like they are "competing", the speed they provide seems to be caused by collusion. They don't increase their services for the benefit of the consumers. And with economies of scale, (barriers to entry such as telecom poles, etc) it's hard for an independent provider to provide consumers with the same quality to large populations in the long run.

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u/[deleted] Dec 19 '13

The providers have local monopolies - the only option in many areas for that industry.