Flashcards:ronindanbo:Flashcards: The current Telecom monopoly was gifted to them by the taxpayer and now this same taxpayer is being hurt by the very same company. I mean, with anything other than a total monopoly (I don't care what it's called by the government or media, it IS a monopoly)
I love how this word is used so much for Telecom as people clearly dont understand what a monopoly is, if a certain firm is the only one that can produce a certain good, it has a monopoly in the market for that good.
There is absolutly nothing stoping TCL, or any other player from building infrastructure to compete with Telecom but the truth is they wont because they dont have to so how does Telecom have a monopoly? Answer is they dont.
This is disingenuous IMHO. The reason no one else invests in redundant (to Telecom) infrastructure is because Telecom was gifted a head start in the first place! It is now no longer economical to do so! Plus, if they did, Telecom would drop their prices in those areas until they were forced out of business. We have already seen this happen before with Telecom and landline/long distance rates and their potential competitors. Telecom is a VORACIOUS and ruthless competitor and the original monopoly it was given by the taxpayer has helped it maintain that monopoly ever since...
Your comment is like someone saying, Microsoft is not a monopoly because anyone can produce a competing Operating System if they want to! We all know that is not the truth just like it is not the truth when someone says Telecom does not have a monopoly in NZ.
Absolutly and totally wrong, the reason no one invests in infrastructure is that they dont have to, if Telecom got into a pricing war it would be totally destroyed, you think TCL Aus would let its subsidiary lose in a war? no and we are talking about a company that is six times the size of Telecom, and dont get me started on Voda that is a monster internationally, it is pure fantasy to think that Telecom could win against these players they would chew it up and spit it out if they wanted to.


That is what this entire thread is all about.
