Monopoly pricing leads to monopoly profits, and that’s the reason for big ISPs attempting to limit competition. If democracy is such an important value, then why shouldn’t ISPs — which control access to the key infrastructure known as the Internet — be run democratically by regional communities?
A new study out of Harvard once again makes it clear why incumbent ISPs like Comcast, Verizon and AT&T are so terrified by the idea of communities building their own broadband networks.
According to the new study by the Berkman Klein Center for Internet and Society at Harvard University, community-owned broadband networks provide consumers with significantly lower rates than their private-sector counterparts.
A lack of competition in countless US broadband markets consistently contributes to not only high prices and slower speeds, but some of the worst customer service ratings in any industry in America. This lack of competition is another reason why ISPs can get away with implementing punitive and arbitrary usage caps and overage fees.
Harvard’s latest study found that community-owned broadband networks are not only consistently cheaper than traditional private networks, but pricing for broadband service also tends to be notably more transparent, more consistent, and less confusing.
ISPs also have a nasty habit of trying to make direct price comparisons impossible as well, lest the public realize what a profound impact the lack of competition has on broadband pricing. It’s a major reason why the FCC spent $300 million in taxpayer dollars on a national broadband map that completely omits pricing data at incumbent ISP request.
“Language in the website “terms of service” (TOS) of some private ISPs strongly inhibits research on pricing,” noted the Harvard study. “The TOS for AT&T, Verizon, and Time Warner Cable (now owned by Charter), were particularly strong in deterring such efforts; as a result, we did not record data from these three companies.”
To retain this status quo, ISPs have spent decades writing and buying state laws that prohibit towns and cities from exploring community owned and operated broadband networks. More than twenty-one states have passed such laws, which not only hamstring municipal broadband providers, but often ban towns and cities from striking public/private partnerships.
It’s also why ISPs like Comcast pay countless think tankers, academics, consultants, and other policy voices to endlessly demonize community-run broadband networks as an automatic taxpayer boondoggles, ignoring the countless areas where such networks (like in Chattanooga) have dramatically benefited the local community.
ISPs like Comcast could nip this movement in the bud by simply offering cheaper, better service. Instead, they’ve decided to buy protectionist laws, spread disinformation about how these networks operate, and sue local communities for simply trying to find creative solutions to the broadband monopoly logjam.
As we’ve noted previously, community owned and operated broadband networks are a fantastic alternative to the broken status quo. For those outraged by the Trump administration’s attempt to kill net neutrality (and soon all remaining oversight of the nation’s entrenched monopolies) building or supporting local broadband networks is one practical avenue for retaliation.