Corporate Doublespeak: By Forcing Competition On The Market, We Will Need To Raise Prices
from the these-guys-are-slick dept
The following statement may be attributed to Sena Fitzmaurice, Senior Director of Corporate Communications and Government Relations: "Consumers in apartment buildings and condos across the nation received a blow today from the action taken by the FCC. The result of this decision is likely to be higher prices for services and years of litigation and uncertainty for consumers. The significant concessions building owners have been able to bargain for on behalf of their residents will be lost."Yes, Comcast is going to use the fact that they now have to compete within apartment buildings to raise prices. Or, so they say. Somehow, you get the feeling that once the local DSL providers starts offering faster/cheaper service, Comcast will have a change of heart on the matter. More seriously, perhaps what Comcast really means is that it believes these kinds of services are natural monopolies, which may actually be a defensible position. Of course, Comcast probably doesn't want to go down that path at all. Once you admit you're in a space where a natural monopoly makes sense, then you open yourself up to forced line sharing and (more importantly for Comcast...) regulations barring any kind of traffic discrimination. Given last week's Comcast kerfuffle over traffic jamming, the last thing the company should be doing is suggesting that competition hurts the space, because that just gives politicians all the ammunition needed to put network neutrality laws in place.
The company can't really have it both ways. It can't go around saying it can run its network like a private company in a competitive market that doesn't need any regulation out one side of its mouth, while at the same time claiming that it's facing a natural monopoly where competition hurts the market out of the other side.