To Hull in a handbasket: the perils of monopolies

A most unlikely anomaly persists in the area around Hull.  Uniquely in the UK, it evaded liberalisation of landline telecomms – a sop to John Prescott? – and its municipally-owned telephone network, Kingston Communications, persists as a local monopoly.  It’s always claimed the locals are “proud” of KC and their crap cream-coloured kiosks – which, bizarrely, have now been granted Grade-II listed status.

I say ‘claim’ because in point of fact, the locals despise KC and its utterly useless landline services, telephone and broadband.  If it wasn’t for the fact that everyone has mobile ‘phones these days, somebody would have demanded it get fixed long since.  Such is the fate of local monopolies, or indeed any properly contestable service, that local authorities get involved with – see Bristol Energy, Robin Hood Energy (Notts), Together Energy (Warrington), not to mention Croydon’s ridiculous essay into building and property speculation, and Thurrock’s ruinous solar farm ventures.

It reminds me of a conversation I had, many years ago, with a bright junior member of my staff who was (is) of Indian heritage, and who would periodically return to the subcontinent to see relatives etc.  After one such trip she said to me: “You need to take an internal flight to see some of my family.  There’s only one airline that flies there, and the tickets are very expensive.  It’s odd, because with no competition and high prices, you’d think they would put on a really good service – but it’s rubbish!“

I was able to enlighten her on, *ahem*, the Ways of the World.   She went on to become a well-known TV personality, and I imagine that by now she’ll have amassed plenty of personal experience to ratify the truth of what I told her.

How many times do these simple lessons of practical capitalism need to be learned and re-learned the hard way?  

ND