Date: Wed, 20 May 1998 08:35:12 -0600 From: Wes Peters <wes@softweyr.com> To: John Kelly <jak@cetlink.net>, chat@FreeBSD.ORG Subject: Monopolies? (Not about M$) Message-ID: <3562EA20.88FEA191@softweyr.com> References: <Pine.BSF.3.96.980518145641.4694D-100000@altrox.atipa.com> <3561d69c.198654393@mail.cetlink.net>
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John Kelly wrote:
> Cisco has achieved 80% monopoly in the Internet router market, but
> without using illegal tying contracts and other practices prohibited
> by the antitrust laws. As long as they act lawfully while creating a
> monopoly, the law does not judge it as bad.
Cisco doesn't have anywhere near an 80% monopoly, depending on how you
define "Internet router market". If you're talking about the backbone
routers on the Internet, it's probably closer to 100%; if you're
talking about the Internet as a whole, it's probably more like 60%.
You raise an interesting point, though. Cisco has such a large market
share, and a near deadlock on the backbone, because their products
work. There are faster routers, and easier to setup and maintain
routers, but Cisco was there first with the most. They've only recently
begun to advertise their products outside the narrowly focused network
trade rags, and don't seem to be making much headway with their new
product lines.
Cisco: who else COULD see their stock go up $3/share on the day AT&T
announces 33% of their frame relay network is down because of a bug
in Cisco's routers?
Be afraid. Be very afraid. The basic reason why free market economies
abhor monopolies is that competition makes EVERYONE (who survives)
better. Lack of competition means lack of innovation and leads to
shoddy products.
--
"Where am I, and what am I doing in this handbasket?"
Wes Peters Softweyr LLC
http://www.softweyr.com/~softweyr wes@softweyr.com
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