The Great Broadband Competition Hoax

Competition is great. That’s why we have such a good health care system. All the health insurance companies compete with one another and we all benefit by getting the lowest possible rates for the best possible health care. There are a few little aberrations around the edges: the health insurers have special anti-trust immunity, like MLB, so they can kind of agree to fair and reasonable rates. And just to make sure, we are not allowed to buy insurance from companies outside of our own state, but in general there is a lot of competition in the health care business. They all compete to employ the best lobbyists.


Broadband internet service is another good example of competition. For example, in the Seattle area there is vigorous competition between Comcast and Qwest. Both offer "high speed internet”.


You can choose 5mbps from Comcast or you can choose 2.5 mbps from Qwest. Comcast costs about $50 a month. Qwest costs about $25 a month. Since there isn’t a third choice – Qwest and Comcast say they couldn’t continue providing such good service at such competitive prices if they had competition - you need to choose between these two highly competetive options. Two are plenty competitive they say. Just look at our advertising campaigns. You can’t get much more competitive than a tortoise.


Does the math of this ménage à deux bother anybody? I have two choices; I can choose 2.5 mbps for $25 a month or twice that speed for twice that money? This is an equation that Mitch McConnell and John Boehner must love. It is nicely congruent with our competitive health care system.