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I think the objection here is to the cell phone market, which more resembles a cross between an oligopoly and a cartel than a free market. You only have a handful of players and giant barriers to entry, so it's not easy to send a real signal about your unhappiness or choose an alternative.


Exactly. And there's obvious collusion, as when all the carriers raised text messaging prices nearly simultaneously a few years ago.


A "free market" doesn't necessarily lead to a bunch of competitors. Everyone has this picture of a free market with 20 competitors and low prices, but a free market doesn't always work out that way. A couple of years ago we had a bunch of cell phone companies to choose from, but they keep merging because the infrastructure costs kill the small players. A small part of that is regulation, but most of it is just the intrinsic cost of building and maintaining a telecom network.


Maybe not, but there will be very low barriers to entry.

G+ could be created by anybody who had the dollars to buy enough servers (and the engineering capability to build it), it did not require a government license.




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