Quote:
Originally Posted by Merrymeeting
So why not let the market determine this rather than a government bureaucracy?
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The market *has* determined it. It's basic math, subscriber density relative to build out and operation costs. The reason an MSO wants an exclusive license is to ensure that they don't invest in infrastructure and then have another MSO come along and overbuild the system, causing both to lose out long term. There is already competition, to a degree, with satellite TV.
In areas like the lakes region you have a LOT of seasonal subscribers and a lot of basic-tier only subscribers. The seasonal ones aren't that profitable, and the majority of the basic-tier pricing is heavily regulated. They make most of their money on PPV, premium channels and additional services.
I've worked a lot with MSO's and have sat on the telecom board in a previous smaller town that I lived in. You need a very dense city with a population of about 100,000+ people before multiple operators becomes feasible.