• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Breaking cable’s broadband monopoly, one market at a time

By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
By
Dan Mitchell
Dan Mitchell
Down Arrow Button Icon
November 1, 2013, 4:18 PM ET

FORTUNE — When challenged, monopolists, particularly in the communications industry, often tend to work harder to protect their monopolies than they do to improve their services or cut prices (or simply limit price increases). An excellent example of this can be found in an article today by the Washington Post‘s Andrea Peterson.

Comcast (CMCSA) has donated thousands of dollars to political action committees that back Washington state Sen. Ed Murray, who is challenging Seattle Mayor Mike McGinn in next week’s election. The mayor has worked to bring better, faster, cheaper broadband Internet service to his city. Comcast says the donations have nothing to do with the city’s plans, but as Peterson meticulously reports, much of the money Comcast had donated has come through PACs, such as the Broadband Communications Association of Washington, that are specifically devoted to influencing broadband policy.

McGinn initially wanted the city to provide high-speed broadband service on its own, like a public utility. The expense finally persuaded him, along with the University of Washington, to seek out a private-sector partner. The city is close to finalizing a deal with Gigabit Squared, based in Washington, D.C.

That company says it will offer 100 Mbps service for $45 a month, and 1 Gbps service for $80. Comcast, a major provider of broadband in Seattle, offers 105 Mbps service for $114.

MORE: What FCC’s Wheeler will do about net neutrality is anybody’s guess

People clearly want faster Internet, better service, and lower prices. Gigabit Squared reportedly received 10,000 requests for service from Seattleites even before the company announced its pricing plans. More than 1,000 communities around the country competed three years ago to become the first to get Google’s (GOOG) high-speed, fiber-optic Internet service. Kansas City won, spurring Time Warner Cable (TWC) to improve its service. Google Fiber’s presence in Austin, Texas similarly spurred AT&T (T) to begin offering high-speed service in that city. People are clamoring for it.

But none of that stopped Comcast executive David L. Cohen from writing an op-ed in June arguing basically that the demand for high-speed service (particularly speeds of 1 gigabit or more) just isn’t there. Even if that were so, it could hardly be argued that people don’t want lower prices and at least a minimally acceptable level of customer service. Those things come only with competition.

In the absence of any federal action to spur competition in the broadband market, competition seems to be happening so far in single cities, through sheer force of will — usually governmental will, or the will of companies like Google, as well as that of upstarts like Gigabit Squared and Sonic, a DSL provider in Northern California that is offering competitively high speeds through phone lines.

The monopoly might be broken up, but it might have to happen one market at a time. That will take a while.

About the Author
By Dan Mitchell
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
Fortune Secondary Logo
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

The new U.S. Dime design for the country's 250th Anniversary features an eagle clutching arrows but not an olive branch.
North AmericaCurrency
The U.S. Mint just dropped the olive branch from the dime. What does that mean for the country?
By Catherina GioinoMarch 12, 2026
14 minutes ago
C-SuiteAdobe
Adobe CEO Shantanu Narayen is stepping down after 18 years—as pressure on the company mounts to deliver on AI
By Sheryl EstradaMarch 12, 2026
1 hour ago
Man speaks on conference stage
CryptoCryptocurrency
Ripple valued at $50 billion after $750 million share buyback
By Carlos GarciaMarch 12, 2026
2 hours ago
Texas Gov. Greg Abbott and Google CEO Sundar Pichai speak at a press conference in front of a Google data center.
EnergyData centers
Google and Tesla know electricity is expensive. They’re teaming up to bring you an alternative.
By Jacqueline MunisMarch 12, 2026
3 hours ago
Nepali consumers wait in line carrying empty LPG cylinders as they rush to gas depots to refill them as growing tensions in West Asia halt the supply in Kathmandu, Nepal, on March 12, 2026. People wait for hours hoping to refill their gas cylinders. While some manage to purchase filled cylinders, many others return empty-handed as supplies remain limited. The disruption follows the escalating conflict involving the United States, Israel, and Iran, which heightens tensions across the Gulf region. Shipping through the Strait of Hormuz, a key maritime route bordering Iran, the United Arab Emirates, and Oman, is also affected by the conflict, disrupting the transport of gas and petroleum products. The impact is now felt in markets around the world.
EnergyIran
Exxon, Chevron, and other US oil and gas producers and refiners hit all-time-high stock values amid Iran war while consumers pay the price
By Jordan BlumMarch 12, 2026
4 hours ago
Personal Financemortgages
What is an assumable mortgage, and can it help you get a low interest rate?
By Joseph HostetlerMarch 12, 2026
4 hours ago

Most Popular

placeholder alt text
Economy
'This cannot be sustainable': The U.S. borrowed $50 billion a week for the past five months, the CBO says
By Eleanor PringleMarch 10, 2026
2 days ago
placeholder alt text
AI
'Proceed with caution': Elon Musk offers warning after Amazon reportedly had mandatory meeting to address 'high blast radius' and AI-related incidents
By Sasha RogelbergMarch 11, 2026
1 day ago
placeholder alt text
Commentary
How the ultrawealthy use smartphone apps to avoid millions in taxes
By Jose AtilesMarch 11, 2026
2 days ago
placeholder alt text
Success
BlackRock is splashing $100 million on training plumbers, electricians, and HVAC technicians as its CEO flags a skilled trade worker shortage
By Preston ForeMarch 11, 2026
1 day ago
placeholder alt text
Future of Work
'I don't know if we're ready': Governors from each party appalled at 100-year-old federal workforce strategy
By Catherina GioinoMarch 12, 2026
9 hours ago
placeholder alt text
Economy
The $38.9 trillion national debt is costing you thousands of extra dollars per year on your mortgage. Here’s how it adds up
By Jake AngeloMarch 11, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.