How is it possible that I am able to choose my cable/phone/electric/water/etc provider?

I don't understand how it is possible to open up utilities for competition. Take electricity for example. If I have one set of electrical wires running into my house from the telephone pole that has the same wires going to me neighbor, how can he have a different electrical company than me? I don't understand how two different companies can sell me the same service over the same equipment. Wouldn't they each need to have their own set of electrical/phone/cable lines running to my house?

3 Answers

  • 1 decade ago
    Favorite Answer

    In the case of utilities such as gas and electric, competing companies simply bill you for the service they buy in bulk from those suppliers. The service is delivered over the same connection, regardless of the vendor, because of the nature of those utilities, only one network for each is practical.

    For communications utilities:

    Multiple traditional cable providers would actually build separate networks to deliver to your home. You would pay to connect to one network or the other.

    For telephone and DSL internet, a secondary provider (CLEC) would lease the copper pair to your home from the primary provider (ILEC), and space in the switching center for the CLEC equipment, or just resell the ILEC service.

    VOIP uses your existing DSL or cable internet, and your cable provider often will sell their digital phone and internet service on their coax (but they have a monopoly on those and TV services on their coax),

  • Keith
    Lv 7
    1 decade ago

    Basically, the competing company takes over the billing (and risk of not being paid) and sells power they create to your current provider.

  • Anonymous
    1 decade ago

    the cables stay the same, where it comes from is diff

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