Comment Competition, now and then (Score 3, Insightful) 191
In the early days, internet service did not require regulation because there was plenty of competition. The barriers to entry were low; anyone could set up a modem bank and T1 service and start serving dial-up customers. My provider was a local one-man operation, with service just as good as (and cheaper than) the big names.
But with the transition to broadband, the incumbent phone and cable providers gained immense power. Their existing physical infrastructure gave them a largely insurmountable advantage over potential new entrants. This created an effective duopoly, one that still persists today in many markets. In such a situation, the free market cannot function, and government regulation is required to prevent abuses.