Quote:
Originally Posted by Rattlesnake Guy
I have been thinking about my initial excitement at the prospect of cable and internet at the camp. Something about it was bothering me. I figured it out. The prospect of "forcing" a private company to do something that is obviously not in their best financial interest is contrary to my conservative belief system. The possibility of causing other customers to pay more so that I have more than 2-3 channels from Maine is just not worth that compromise in principals. Crap.  |
I too would not force a company into an economic disadvantage in this manner (by using the government). However, having negotiated the cable contract in my town, the profitability is AMAZING, and they have a legal monopoly and can pretty much charge what they want (and they do).
The Cable Act (early 90s) gave the cable companies essentially unlimited power to dictate terms, and a town can't get rid of them unless the company does something like go dark (and for a long time).
One of the problems with public utilities is their desire to "cherry pick" the easy stuff, and leave the more rural areas unserviced. Public utilities have a unique position of pretty much guaranteed profitability and for this privilege, they need to service the less profitable areas.
If I could own a business of this type, it would be great -the revenue stream is stable, your market is protected, and you can increase costs to stay profitable.
Regards,
Steve (another fiscal conservative
)