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This is example of a situation where "deregulation" actually decreases competition among service providers. Consumers will see higher prices because of the resulting de-facto monopolies.
Lengthy discussion on this on FR yesterday:
http://www.freerepublic.com/focus/f-news/1458288/posts
Non tech question: What would be involved for the smaller ISPs putting up WiFi to cover a city? Wouldn't that be a way to compete with the big guys?
My two cents worth.
First, no phone companies were giving away anything. They charged CLECs (smaller phone companies) the price they offered their larger customers. They were making a profit off of labor and past investment.
Two, they only had to do this in certain areas. Areas that were not considered competive. If there was no competition then they had to offer a reduced rate, not free by any means.
Third, they did everything in their power to not comply to the intent of the law. Issues like slamming a customer into a two year contract because they paid their bill (read the small print). Dropping fiber to elimate competition, not provide better service.
Forth, wired-line service is going the way of the Model-T. The number of cell phones has already overtaken fixed phones.
The phone companies have a lot of Pols in their pocket and the regulation enviroment is hostile to any attempt to compete. Cable is afraid to offer VoIP, wireless frequencies are being gobbled up, broadband over powerlines is deeply regulated, etc...
UH OH. I LOVE my Earthlink service. I don't want SBC and Yahoo and the rest of it. WHAAA!
Good....