Tuesday, December 30, 2008

Free market solves another problem

Text messaging is wildly overpriced relative to its negligible cost to providers. Nonetheless, their oligopolistic pricing goes up in lock-step. Why hasn't this so-called free market opened the door to a price-cutting entrepreneur?

The real problem that markets such as this intend to solve is how to remove money from your wallet and transfer it to the executives. (You thought the shareholders mattered? Ha.) And this market is vigorously solving that constant problem!

One reason that phone companies are against net neutrality is that they've been there before. It would be much easier for a provider like MCI from the early days (say, 1978) to piggyback on existing networks and undercut prices. As they say in economics, there would be much lower barriers to entry and thus to a return to competition, however briefly.

1 comment:

solopoesie said...


Che sia questo anno appena iniziato
un viaggio meraviglioso
che sia per chi ha un sogno
o chi ne privo
il vederlo nascere.
Che sia per chi si stringe
ad un amico un anno pieno di affetto.
Per chi lo cerca la possibilità trovarlo.
Che sia per tutti un anno magico
fatto di sogni di speranze e bontà.
Fatto di momenti pieni di serenità.