Re:Apples and Oranges (Score 1)

One problem in the states is that Telcos are often required to charge the same amount for a service within a state (and sometimes a region). This means they can't give lower cost service within a city (where infrastructure charges are less). They have to develop a cost model for their entire network (including rural areas) and come up with a uniform charge. Basically, the urban customers subsidize rural connectivity. This is offset a little by the "universal services fund" which is a defacto tax collected on every phone bill in America that helps subsidize connectivity to schools and rural areas.

This is an example where the government (while trying to do a good thing and keep costs low in rural areas) in affect forces prices in cities higher than they could be.