Wednesday, February 13, 2013

MM#6: Internet/Cable Issues Part I

People have been having issues with cable companies since the beginning of … well, cable companies. Most complaints about these companies are legitimate and entirely understandable. In many locales, the cable provider has a monopoly over the customers. Sure, you may also have the choice of getting satellite service instead, but if you want cable, you often times only have one option. Even in locations where you have multiple choices, the entire industry of television/internet providers is monopolistic in terms of how they operate. Everyone pretty much offers the same thing, and it's usually roughly the same price. 

When the entire industry is on the same page, it reduces their need for infrastructure investment to offer the customer more for his/her money. Keeping things at this level is basically risk free for them. They can keep your service level static while keeping the price high. Where else are you gonna go? And if you do go, they know you won't get anything really different from what they offer. Some companies may gain a few customers here or lose a few there, but on the whole, they all rake in the cash.

Why offer you more at their risk? It's easy money for them. It's not like these huge cable companies lack the capability to provide you more. They can easily provide much higher speeds for your internet connection, but they won't because of what they do lack... and what they lack is incentive. Currently, there's absolutely no incentive for them to push the envelope.  If they push, then the other companies will have to as well, and that may cost them money.  These companies aren't competing against each other in the marketplace; it's only the illusion of competition. They all toe roughly the same line, and everyone wins… well, everyone but the customer.

This is why Google Fiber can't get here soon enough. Every industry needs someone willing to upset the applecart, and Google is trying to do just that. At worst, they'll create a demand for higher quality service than you have now at the same price or similar service to what you have now at a lower price. At best, they'll be successful in the industry, forcing a complete overhaul of what's expected of the companies and what it costs for the customer.

In the meantime, I can share with you some of my own issues, specifically the back-and-forth emails, that I had with the service provider I had many years ago – good ol' Comcast. I've had AT&T U-verse for the past few years, and I must say, I don't miss Comcast one bit. That'll be in Part II.

1 comment:

  1. I knew it was only a matter of time before this topic was a focus of your discussion. I look forward to the ineptitude of the industry through your meticulous eyes.

    GP

    ReplyDelete