Reply to post: Re: Services not infrastructure

Ofcom wants you to thank it for resurrecting the spectre of BT's 1980s monopoly

Anonymous Coward
Anonymous Coward

Re: Services not infrastructure

The problem with adopting services competition rather than infrastructure competition John is that you end up with the situation that everyone complains about in fixed line broadband. It tends to create a wholesale monopoly that has such large scale efficiencies that it's very hard for a new entrant to profitably take them on.

Virgin only exists today because it got to buy up all the cable TV companies assets in fire sales - if it had paid full value for those assets it would be broke too.

I think you're mostly right on the economics of it, but the consequence is monopoly.

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