TELECOM Digest OnLine - Sorted: Re: Is This Phone Monopoly Legal?

Re: Is This Phone Monopoly Legal?
16 Mar 2006 14:21:15 -0800

Cyron wrote:

>... The entire city (aside from those using wireless phone
> service) are forced to use the services of the local telephone company.

> In past years, local internet service providers have sprung up -- only
> to be bought out by the local telephone company.

I can't answer your question of whether this is allowable or not.

However, in general terms, this is the free marketplace at work, and
the goal of deregulation and divesture was a free marketplace.

In some places a free market means vigorous competition. However, if
there are not enough customers support a volume business, businesses
will have no interest to serve that market and you have your

You also have the situation where one company buys up others which
also is perfectly legal.

In other words, if you're in the middle of Manhattan you'll find
numerous choices of restaurants within a few square blocks of
yourself. If you're in some town of 1,000 people, you'll find likely
one restaurant, take it or leave it.

You may have an anti-trust issue with your phone company buying up
every potential competitor. But I don't know how anti trust law works
these days or how it applies to this business.

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