NO SUCH THING – "Why do internet companies suck so much?"

Podcast: No Such Thing
Host: Kaleidoscope (with Noah, Devin, and guest co-host Rachel Askanazi)
Episode Date: February 25, 2026
Featured Guest: Emily Stewart (Senior Correspondent, Business Insider)

Episode Overview

This episode dives deep into a question many listeners can relate to: Why do internet companies (Internet Service Providers or ISPs) seem to provide poor service while charging high prices, and why do many people only have one (bad) choice for home internet? Hosts Noah and Devin are joined by guest journalist Rachel Askanazi and special guest Emily Stewart to discuss their frustrations, dig into monopolies and infrastructure, and explore potential solutions.

Key Discussion Points & Insights

1. Personal ISP Grievances (02:32 – 08:16)

• All hosts express frustration with their ISPs: frequent outages, poor customer service, limited choices, and connectivity issues in their own homes and apartments.
• They note how, despite formally complaining or providing evidence of bad service, compensation is minimal and options for switching are non-existent.
• Many have experienced "door-to-door" ISP reps offering services, but ultimately informing them service isn’t available—frustratingly confirming the lack of choice.

Quote:

"I've upgraded my service, so I'm getting one gig just to hope that I can even get half of what they're offering, because that's kind of been my problem. I'm saying, like, okay, I'm paying for 500 megabytes. I'm not getting even close to that."
—Noah (05:25)

Quote:

"You would think...they come to your door, they say, hey, do you want—...then they pull out their little iPad and say, yeah, we don't offer this service, but glad to know you're interested. Yeah, you just wasted both of our time."
—Noah (07:06)

2. How ISPs Are Set Up in the US (10:17 – 15:58)

• Emily Stewart explains the "last mile" problem: The most expensive and sensitive piece of infrastructure is the final cable that connects homes to the broader network, making competition rare.
• Historically, cities struck exclusive or semi-exclusive deals with cable companies to build the initial lines and sometimes gave incentives (subsidies, TV channels, etc.).
• Since companies have invested heavily in these physical networks, there’s little motivation to allow competitors in—especially when laying cables twice is costly and disruptive.
• This creates regional monopolies or "natural monopolies." Sometimes laws even prohibit cities or towns from building their own public internet.

Quote:

"Once you've dug up the street and you've put in the cable, nobody wants to go behind you to do that again...your competitor's not going to come in...you spent all of this time and money putting in these cables."
—Emily Stewart (13:19)

3. Why Internet Isn’t a True Public Utility (15:58 – 18:44)

• Utilities like water or electricity are built and maintained with some public investment and guarantee, but the internet primarily relies on private companies and market incentives.
• Emily compares internet service less to water or electricity and more to the postal service, emphasizing that privatization would leave many areas uncovered simply because they're unprofitable.

Quote:

"The stronger comparison is to the mail...if it was completely privatized, the reality is many areas...simply wouldn't have the mail, because it wouldn't make financial sense for the providers."
—Noah, summarizing Emily's point (16:00)

4. Monopoly, Oligopoly, and Market Power (20:37 – 25:50)

• Definition: A monopoly exists when one company is the only provider of a particular service in a particular market.
• The episode discusses the prevalence of oligopoly (a few companies dominate), using examples like airlines, cell service, and Amazon’s e-commerce dominance.
• Monopolies and oligopolies are seen as harmful: fewer choices, higher prices, poorer service, negative effects on labor and suppliers.

Quote:

"In an ideal, healthy economy, we want competition, right? And the big problem with a monopoly...is when companies don't have to compete, when they have so much power, consumers lose out, workers lose out, etc."
—Emily Stewart (22:14)

Memorable Moment

Emily recounts Amazon's Diapers.com story (23:57–25:50) as a classic example of a giant company leveraging its power to either force a competitor to sell or drive them out of business.

5. US Antitrust Policy & The Evolution of Competition Law (25:50 – 29:17)

• US antitrust policy has shifted from outright trust-busting in the early 20th century towards a more market-driven or laissez-faire approach since the 1970s.
• Recent years have seen a slight reversal, with some regulators (like FTC's Lina Khan) attempting more aggressive enforcement—but legal battles remain tough.

Quote:

"If you see a persistent pattern of a company raising prices, degrading service, making it impossible to actually get somebody on the phone—all these big and small ways that the consumer experience is worse—and you don't see defections...that can be direct evidence of monopoly power."
—Emily Stewart (27:29)

6. Are ISPs Monopolies? (28:15 – 29:57)

• Emily agrees that single-choice ISPs in neighborhoods are functionally monopolies, but highlights that the legal threshold for antitrust action can be high.
• 5G home internet is emerging as a potential, if imperfect, competitor in some areas.

Quote:

"Maybe it's not, like, exactly Optimum's fault or whoever's fault that they're doing this, but, like, they're enjoying this situation and, like, you are not."
—Emily Stewart (29:41)

7. International Comparisons & Policy Solutions (29:57 – 34:21)

• Europe’s Approach: Some countries make companies "lease" their last mile infrastructure to competitors, enabling more choice and lower prices.
• The US recently began allowing smaller companies to "resell" wireless service (e.g., Mint Mobile), but not for cable/fiber internet.
• Municipal broadband (e.g., Chattanooga, Tennessee) is detailed as a successful pilot but faces intense pushback from industry and is often blocked by state laws.

Quote:

"It feels to me like if we could just have these companies have to lease out at least some of their stuff, that would help a lot...I'm not asking for eight Internet providers, but I feel like if I just had two, I would have more than one would be nice."
—Emily Stewart (34:13)

Memorable Policy Example:

• Chattanooga, TN: Launched a publicly owned fiber network for ~$10/month, resulting in new jobs and economic growth, but was quickly limited by state law and lawsuits by private ISPs (32:23–34:13).

8. Is There Hope? (34:21 – 36:42)

• While minor improvements can be made (call regularly, check for new providers, leverage any small advantage with customer service), structural change is slow.
• Some states are exploring subsidies or small-scale efforts, but progress is incremental.

Quote:

"Should you be nice? Should you threaten to leave?...Try and get the other person's vibe, and maybe they're having a good day, and then you can have a year of a discount before it's bad again."
—Emily Stewart (36:01)

9. A Rare Win: The Customer Service Miracle (36:51 – 38:22)

Timestamps:

• 36:51–38:22: Noah describes, with surprise and delight, receiving new long-term bill credits from his ISP after years of fruitless complaining. He muses about whether competition is finally emerging in his neighborhood.

Quote:

"This time was different...I'm gonna apply you a credit and it's gonna be the same amount of credit for five years. Your bill is going to be $102 for the same Internet speed you have right now."
—ISP Customer Service agent (37:55)

Notable Quotes & Moments

• "Why can [the signal] not go through the walls? That's an issue because my apartment has walls." —Rachel (02:55)
• "You don't know who you're on the phone with. You don't know! Julia can have. Also, why would I be...What, scamming? Yeah. Like, I'm doing this to upgrade someone else's Internet?" —Noah (06:14)
• "We're not doing something so simple and easy. It does just suck." —Noah (36:38)

Conclusion & Takeaways

• Many US households face limited or no choice in ISPs, which leads to high prices and unreliable service.
• The current ISP landscape is largely a result of infrastructure cost, exclusive early deals, and legal/market inertia.
• Monopolies (or quasi-monopolies) persist because ISPs lack incentive or legal obligation to allow competition at the crucial "last mile."
• International (especially European) and municipal models demonstrate feasible solutions but face intense industry resistance in the US.
• Minor victories for customers (discounts, credits) do occur but do not address the fundamental problem.
• Real change may require a shift in public policy—treating internet access as a true utility and mandating open infrastructure access.

Recommended Segment Breakdowns

• Personal ISP horror stories: 02:32–08:16
• Technical & historical explanation of ISPs: 10:17–15:58
• Monopoly & policy deep dive: 20:37–29:57
• International comparisons & Chattanooga case: 29:57–34:21
• Customer service miracle & wrap-up: 36:51–38:22

Resources & Further Reading

• No Such Thing podcast
• Contact: mannynoahdevan@gmail.com

Summary by: NO SUCH THING Podcast Summarizer
For listeners who want the research without the rage-quitting.