Because its not a freely competitive market. They didn't acquire the infrastructure and access -- particularly the last mile access -- by freely negotiating with property owners, nor, even if they had, is there unlimited capacity for new competitors to do so. Incumbent major broadband providers all got the basic access essential to provide infrastructure as CATV and telephone providers, as locally or regionally regulated monopolies, and there is pretty much no way for direct competition with fixed broadband providers on equal footing.
Exactly this. To me, it ceases being a property rights issue when the rights given to the carriers were not granted under market conditions to begin with.
Does that give the government the ability to impose on the carriers whatever it wants in an arbitrary fashion? No. But it does mean that there should be some elasticity in terms of regulatory structure.
Exactly this. To me, it ceases being a property rights issue when the rights given to the carriers were not granted under market conditions to begin with.
Does that give the government the ability to impose on the carriers whatever it wants in an arbitrary fashion? No. But it does mean that there should be some elasticity in terms of regulatory structure.