Re: Excellent article
Most countries have a "duopoly" of cable & DSL. They keep each other competitive.
And then there's the UK. We do have some cable but what keeps prices down and encourages choice is our regulator. Ofcom forced our incumbent to provide equal access through a wholesale service then forced the incumbent to provide LLU. It has even forced the incumbent to provide access to its local loop ducting but so far to little interest. Pricing for all these services is very carefully controlled.
In fact our incumbent is split into three main divisions. All are supposed to be separate and get no favours:
BT openreach - local loop and core networks.
BT Wholesale - provide wholesale services built on top of openreach kit.
BT Retail - ISP and telephony built using wholesale services.
Other ISPs and telcos compete with BT Retail. Some communication providers buy services of openreach and have even set up their own competing wholesale products.
The result is that pretty much everyone in the UK has a choice of a dozen or more ISPs if they go the DSL route and in slightly less than half the country they also have a choice of a single cable operator. It's also pretty cheap here although geography helps with that. For £30 ($45) a month you can get telephony and broadband with speeds up to 80Mb/s and unlimited usage.
The downside is slow investment. It's damn' hard for anyone to make money over here with that pricing so investment in faster networks tends to be slow. VDSL is has reached 75% of the UK and might reach 90% over the next few years. There's been no significant cable growth at all.
Choice doesn't really help with technological improvements here because the same company owns 99% of the local loop. Nearly half of us have a choice of cable or DSL but for most it's whatever flavour of DSL the incumbent has chosen to provide. Currently a mix of ADSL, ADSL2+ (the majority) and VDSL being rolled out.