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slopinthebagtoday at 6:21 AM2 repliesview on HN

Why would fiber to the house be a natural monopoly?


Replies

andriamanitratoday at 6:49 AM

Because the fixed cost of deploying infrastructure (digging the fiber to the house) is extremely expensive compared to the marginal cost (of serving data over an already installed fiber). 20 different companies all digging their own fibers to the same house would be tremendously wasteful.

https://en.wikipedia.org/wiki/Natural_monopoly

inemesitaffiatoday at 6:56 AM

Overbuilding makes no financial sense for companies