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The infrastructural barriers to entry are nontrivial, to be sure.

Further restrictions -- for example, kneecapping pricing structures that companies can use to differentiate themselves -- will only exacerbate that, though.

Another thought is that with the right market dynamic, I have more variety than it seems at first blush: cable, DSL, fiber, dial-up, satellite, WiMax, 3G, power lines, and possibly others. There's a variegation of technical specialty there that lends itself to horizontal competition by many companies. For heavy usage, several of these are currently poor... but looking at our present options and determining that only cable and fiber matter, for instance, is selling innovation short. It's surprising what can crop up out of nowhere when someone sees an unexploited opportunity.

The reason there hasn't been a mass flight from the standard telcos yet, I think, is that packet profiling has largely taken the form of capping torrents for heavy users, which is a small minority of the market -- and they're arguably being capped for the benefit of the majority. If the telcos make a gamble on harming access or speeds for the majority, there will be a scramble for alternatives, and they will present themselves.

Legislation is too often proposed with the deeply flawed assumption of an inelastic economic model.




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