this post was submitted on 25 Mar 2025
733 points (98.8% liked)
Technology
68918 readers
8223 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related news or articles.
- Be excellent to each other!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
- Check for duplicates before posting, duplicates may be removed
- Accounts 7 days and younger will have their posts automatically removed.
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
The thing is, people often switch providers due to poor network speeds, overprovisioned resources, and outdated hardware. Budget hosts use older hardware and whatnot to keep prices down, and premium hosts use newer hardware to justify a higher price.
If regulations come in that cap certain costs, it'll likely devolve into a race to the bottom per unit, with larger companies generally winning because they can get better deals on hardware due to hulk pricing. I imagine it could kill segmentation as well.
Maybe it would be okay. I'm just not very confident in my government to craft sensible policy that doesn't just benefit the largest lobbies, as in, the largest providers.
You are describing a scenario similar to the Texas power grid where that has indeed happened and then prices go up anyway as services are knocked out from a lack of investment in infrastructure. Similar stuff happens today when a vulnerability in S3 emerges or something like that. It is still a race to the bottom, and we have absolutely seen stagnation in service offerings.
The Independent System Operator (ISO) system works extremely well to field multiple producers and negotiate for the best rates among competition. It's one of the reasons why we all take electricity for granted, unless you live in Texas or on a less serious scale Arizona where two corprorate entities are grandfathered in to manage the supply, they enjoy a duopoly and the rates for the service is not very competitive.