Increased regulation means that would-be network providers need lawyers and lobbyists to compete.
I can't get FIOS on my block in Manhattan even though I can see Verizon HQ from my window. I'd like to give them my money and they'd like to take it, but they haven't gotten over the regulatory hurdles to run a fiber.
I am sure a small guy would love to do the same but there's no way they can get over those hurdles, if even Verizon struggles to do so. So yes, competition is de facto illegal.
Regulation is good for incumbents. Or, more accurately, it prevents them from having to work harder.
http://clipperhouse.com/blog/post/Net-neutrality-and-preserv...