For telco stuff specifically it's more that local governments love to rentseek from the incumbents. The faustian bargain is that the telcos pony up and in excha

For telco stuff specifically it's more that local governments love to rentseek from the incumbents. The faustian bargain is that the telcos pony up and in exchange the government, usually local, makes it nearly impossible for new players to enter. Some of those policies might end up making it harder for them to operate but it's harder still for competitors. The same is true when hospital networks try to expand beyond state lines. The reasoning goes if I can't expand why should they?