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| reply to nasadude
Re: Standard Government Intrusion Result said by nasadude:so yeah, FCC and congress aren't doing their jobs for consumers, but nobody is "forcing" monopolies/duopolies except the companies themselves. Concur. There are firefighters at every fire, but does that mean firefighters cause fires?
Limitations on competition are:
1. High barriers to entry: Cost of spectrum, infrastructure.
2. Front-end hooks (subsidized phones) draw the unsuspecting into the noose. The price to switch is too high.
3. Network effect: Somebody using an iPhone app cannot find any equivalent for Blackberry et al. So they are stuck with AT&T.
Any time there is a limited resource, concentration of capital, and high barriers to entry, the incumbent operator tends to have the power. Customers have none. Regulation by legislators or the administrative branch will be fought by the incumbent's lobbyists.
Incumbents, beholden to investors, must do everything they can to maximize profits. Little changes due to the outsized and ultimately corrupting influence of incumbent lobbying.
Eventually, if the right prosecutor comes along at just the right time in the election cycle, a suit might sneak through that brings about real change.
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