From: ozdotnet-boun...@ozdotnet.com [mailto:ozdotnet-boun...@ozdotnet.com] On 
Behalf Of .net noobie
Sent: Tuesday, 13 July 2010 12:31 PM
To: ozDotNet
Subject: Re: [OT] Friday - Conway (or.. Labor govt) once againdelaysInternet 
Filter

Er, since when would that increase competition?  Do we have two sets
of roads, two sets of electricity *distribution* systems?

becuase you have to places to buy from, it's call competition,

Some things are "natural monopolies": 
http://en.wikipedia.org/wiki/Natural_monopoly

Multiple companies investing capital intensive systems, rather than sharing a 
common infrastructure, just results in increased costs for everyone.

If roads were private, do you think it would be cheaper for motorists if there 
were 2 highways between Sydney and Melbourne? By your argument, if there were 
10 highways built, it would be even better, because there would be more 
competition!

plus if you ever work in a place like a mine for example,
you notice they have 2 of everything, so when one fails the other takes over, 
it's called redundancy

This has nothing to do with competition.

In any case, the NBN is there to provide a common set of infrastructure in a 
market which is a natural monopoly. Instead of a private operator collecting 
monopoly rent (http://en.wikipedia.org/wiki/Monopoly_profit) to the detriment 
of consumers, a government sanctioned provider can provide the base 
infrastructure at a cost that doesn't maximise profits to the holder of the 
monopoly.

Cheers
Ken

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