Regulation Fuels Competition In Euro Broadband

So now, the New York Times finally notices that the rest of the industrial world is beating our brains out in boradband.

It's very simple. If you don't regulate in a market with high barriers to entry, it is more profitable for the incumbent to work on keeping, and raising, those barriers to entry. It's more profitable than attempting to build a better cheaper product.

The US have given thousands in subsidies to the incumbent telcos, and done nothing by way of regulation, and as a result we have 2nd rate service (hi Comcast users):

Ms. Reding emphasized her determination to encourage greater competition in the market and to give regulators the power to force “functional separation” — obliging the owners of telecommunications networks to free the networks from their operating divisions.

Word up on Ms. Reding.