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Telecom has little competition because of high barriers to entry, not regulation. I just don't understand how to square this > because a corporation cannot ev
by mxkopy 3y ago
Telecom has little competition because of high barriers to entry, not regulation.
I just don't understand how to square this
> because a corporation cannot even satisfy the needs of consumers within their narrow band of production (or else competitors wouldn't exist, and further enhancements of products would be unnecessary).
against the reality that there are monopolies that don't satisfy consumers and that some companies profitably degrade their products over time.
- monero-xmr 3y agoThis is why I said "in a truly free market" in my explanation. Telecom is far from a truly free market. No matter how much capital you have, you cannot enter the market as a new provider, without regulators approving a huge variety of things, not just wavelength and radio stuff but also the right to exist at all as a provider of such telecom services. This introduces all manner of possibilities for corruption, lobbying, etc. that lead to monopolies. IMO the main cause of monopolistic behavior is government regulation rather than natural tendencies of the free market (but that's up for debate and my position is unpopular).