Comment Re:Reps are wrong; last mile should be utility (Score 2) 176
Yes, there's a happy medium.
The history of AT&T is most interesting. At that time (late 1920s IIRC) there were hundreds or thousands of phone companies. AT&T was the biggest. AT&T used both technical arguments and outright bribery to establish the phone monopoly. It argued that with all these companies competing - mostly for the "last mile" - the country would suffer with too many conflicting technologies and incompatibilities, and price competition would prevent spending the money for the research and development needed. This was not so long after the railroads went through some growing pains that had to be fixed with legislation, so they had a point. But they also spread money around Congress like water - not just campaign donations but cash under the table. At one point it was estimated that 90% of Congress had been paid off by AT&T. So the competitors basically were never allowed to make the opposing technical case - it was a done deal.
The result was a slow but steady growth in technology, and the tremendous R&D of Bell Labs. But it's also possible that the other path might have resulted in much faster development - we'll never know.
Later AT&T and its children fought tooth and nail to prevent any other product from hooking up to its lines - again their argument was to "protect the infrastructure". The 1968 CarterFone Decision broke that side of the monopoly and allowed us to plug any phone or modem we wanted into the network, so long as it they "did not cause harm to the system". The present arguments are a continuation of this issue. In a related process, Skype applied to the FCC in 2007 to apply this decision to the wireless industry and require wireless carriers to allow any device to connect to wireless without getting prior approval from the carrier. (This would, I think, break the monopoly on phones that each wireless carrier presently maintains.)