Breaking up Cable Monopolies?
Friday, November 16th, 2007Cable companies that have affiliated themselves with large apartment complexes have definitely reaped rewards over the years. For years apartment complexes have signed on with a single provider which was quite lucrative for the cable company, but rather limiting for the residents of the apartments. The apartments were supposed to negotiate bulk rates with the provider, but this was not always the case. Now, the FCC might do away with cable monopolies, at least in regard to apartment complexes.
The Value of Competition
There is no doubt that a freely competing market offers a great deal of savings to consumers. When all residents of a particular apartment complex are forced to purchase services from a single provider, the value of a free market is completely missing. The FCC views this as a monopoly and has held hearings to nullify any contracts between apartment complexes and cable companies.
This is a blow to the cable company in question, but is a boon to the many other companies offering services who have previously been excluded. (more…)