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AT&T to Buy Regional Carrier In Iowa

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Replying to:  This is ridiculous by Jarahawk   Jul 29, 2013, 10:29 PM

Re: This is ridiculous

by T Bone    Jul 30, 2013, 8:50 AM

If not for government regulations which favor bigger companies it would not be possible for at&t and Verizon to buy up smaller companies in the first place.

Big business LOVES government regulation because government regulations are useful tools that big business can use to strangle small business, and that's exactly what's happening here, recently the FCC has been cracking down on wireless carriers, generally to the wildly enthusiastic support of everyone here at Phone Scoop....

But guess who gets hurt most by all those regulations? It ain't the bigger the same thing happens that ALWAYS happens when government regulations of business become excessive: the big companies use the regulation as a tool to wipe out the smaller companies.

It's not hard at all to understand how this happens, with every government regulation, there's a certain built in cost for a company to be able to comply big carriers like at&t and Verizon can more easily absorb the cost of all those a small company like Longlines will see its profit margin drop by 50 or 60% due to FCC regulations while at&t sees its profit margins drop by only 1 or 2%....

And that's why government regulations tend to create monopolies.

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