The Telegraph And Natural Monopolies In Communications
from the how-do-you-deal-with-them? dept
A bunch of folks have sent in Matthew Lasar’s excellent look back at some of the early days of the telegraph system and how it parallels some questions that we face today over things like net neutrality. The basic story is that Western Union worked out a way to gain a monopoly on the telegraph, and then worked out a deal with the Associated Press, whereby all AP papers would use Western Union, and none would support the creation of a competing telegraph company. From all of this, there is even the suggestion that a presidential election was stolen. It’s a worthwhile read.
Of course, the parallels are not perfect, and there are lots of other questions to be raised, but there are some good points to think about, when you’re dealing with a communications system that is, effectively, a natural monopoly. As the FCC suddenly seems open to the concept of line sharing again, after being down on it for so many years, it’s at least worth looking at the history on things like the telegraph, to understand why competition really is a good thing, especially when it comes to the major means of communication.