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> The telecommunications act sought to open markets to competition, but the result was consolidation. Is it generally so that deregulation causes consolidation
by willvarfar 11y ago
> The telecommunications act sought to open markets to competition, but the result was consolidation.
Is it generally so that deregulation causes consolidation? And is this the opposite of what lawmakers were trying to achieve?
- liquidise 11y agoI would wager the trend is based on capital to enter market. If i want to start a restaurant or convenience store, i need real estate. Infrastructure businesses (cell, tv, internet, electricity, etc) require considerably more capital to enter or sustain. In many cases, we see this manifested in local monopolies for services like internet. In the case of television, deregulation has allowed big players to more easily buy up smaller shops, given the sheer cost of operation.