In a regulated industry there can be a perverse incentive for operators to be less efficient. The practice is called Gold Plating. The regulator allows the oper

In a regulated industry there can be a perverse incentive for operators to be less efficient. The practice is called Gold Plating. The regulator allows the operator profits in part based on their network investment so an operator has an incentive to over invest in maintenance and upgrades and inflate the costs. That is one of the ways they can make super profits in what is supposed to be a regulated market. Consumers pay for the overspending and the profits on top for no benefit which is worse than just paying for higher profit margins.