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You're looking at this from a free market stand point. Internet service is anything but. When you have government oligopolies set up where really only two providers can provide service, this is not free market. Even when you have two companies competing for your business, they will collude with each to maintain price controls and while providing the least amount of service possible. Verizon did this a few years ago by agreeing not to expand into markets it didn't already have FIOS. In exhange, the cable companies that held cellular spectrum space Verizon wanted agreed to sell. This all passed through DOJ review.
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