Man Without Qualities

Friday, December 27, 2002

Comments On: Subsidy By Another Name?

Astute reader KP writes from Tacoma, Washington:


You quote Peter Huber as saying: "Most of the time, it's a mistake to force companies to share reservation systems, power transmission lines, copper loops..."


I find his inclusion of 'copper loops' (and possibly transmission lines, though I'm less certain of the recent history there) quite inappropriate as example of the ill effects of forced sharing of resources. That's because in many cases, those loops were strung by regulated statutory or virtual monopolies, none of whom have fully transitioned to being fully competitive private companies. (It also begs the question of whether utility wiring, poles, and vaults, like surface streets, are not "natural monopolies" where the right way to provide real competition is a regulated infrastructure provider owning the loop with telcos competing for the service.)

Thanks for a very interesting site!

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