|reply to elefante72 |
Regulated utilities have an incentive to invest in infrastructure, because they get a guaranteed return on capital.
This was the old Bell System model, in which they gold-plated the infrastructure. The more money they spent on their network, the more money they'd generate for their investors. (After two decades of neglect, though, the old phone network is now falling apart.)
Contrast this to the deregulated situation, in which companies are very tight-fisted when it comes to capex.