Blog: Comcast

Maybe it's the criticism Verizon has been getting on blogs, in the press, from academics, and in Congress for its anticompetitive behavior. Maybe it's pressure from activist groups like Save the Internet. Maybe it's the upcoming spectrum auction, where the FCC implemented some (but not enough) rules to encourage mobile competition, and Verizon sees the writing on the wall. Maybe it's because they refused to launch the iPhone on their network, and instead Apple ended up with an exclusive with AT&T. Maybe it's Google's recent announcement of their open Android platform.

Whatever the reason, yesterday Verizon—the most control-freak-ish of mobile carriers, the one that cripples phones to disable WiFi or Bluetooth or anything that might compete with their high-priced service add-ons, the one that refused to give NARAL SMS access, whose BREW system locks out all but the deepest-pocketed developers—that same Verizon Wireless yesterday announced that it will open up its network to any phone, the "cellular Carterfone" Tim Wu has been advocating.

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Advocates of a completely unregulated broadband ISP market argue that left to its own devices, ISPs will offer the array of products to consumers that best fit consumers' needs at the optimal price points.

Yet for millions of people who live in Comcast's service area, there is only one choice for fast Internet - Comcast. And Comcast gives customers two choices: residential cable Internet for around $60/month, or business Internet for $1500/month. But residential cable has a secret bandwidth limit, and as Consumer Affairs reports, if customers exceed the limit, Comcast cuts them off. Want to pay more for twice the download capacity, like you can on with cell phone minutes? Too bad, no.

Nevertheless, the U.S. Department of Justice believes that everything is peachy keen in Internet land. Art Brodsky of Public Knowledge debunks the DOJ, comparing the range of broadband Internet choices in the U.S. (for most people, that's just one, and for lucky people, two) with the huge array in the UK. The Consumerist arranges it into a nice side by side comparison chart.

Why can't we have a real market with real competition, instead of ideologues like those at the DOJ using "free market" rhetoric to actually stifle the development of an actual free market? Sounds like the people at the DOJ didn't get past the first chapter in their economics textbooks, to the part where it explains how barriers to entry are one of the primary impediments to a healthy market.