Public Trustee & Competition in Cable & Broadcasting Natural Monopoly
Professor: David Olson
Student: Giovanni Navas
Jan 15, 2012
Telecommunications Law and Regulation
What is a Natural Monopoly?
The Natural Monopoly figure surge as an implicit regulation to control the market and beneficiate consumers from service or product providers. In essence, a Natural Monopoly surges when a provider is able to supply the products or services the customers demand without intervention of any other firm, and allowing another provider to facilitate the same products or services wouldn’t be beneficial for the consumer.
The Natural Monopoly figure exists because ...view middle of the document...
Should the government treat telephone, cable or broadcasting companies as Natural Monopolies?
I personally think that the government should treat the telephone, cable or broadcasting companies as Natural Monopolies. Companies that provide telephone, cable or broadcasting services require large investments and not every single firm has the capital or experience to implement or provide these type of services.
The most restrictive investment in any of these business is the necessary infrastructure to provide the service, taking in consideration the fact that some companies have the resources and can take the risk of investing huge amounts of money in a community without getting any assurance that all customers will subscribe to their services is a key element when this type of project is implemented. Is also important to highlight that if a company has only enough capital to deploy the service but has limited to no additional resources to expand and better the service, innovation and ultimately...