1) ISPs agree not to compete; and --> probably not. Cartels don't work in practice, because there's always an incentive to cheat. Look how often OPEC nations pump more oil than they agreed to pump.
2) It is expensive for new entrants to build infrastructure. --> Yes, but if the ROI is sufficient, it can still get done.
3) Local / state government "franchise" agreements which grant incumbents monopoly (or near monopoly) status. --> the real killer. If the local government regulates you out of the market, it's game over.
> 1) ISPs agree not to compete; and --> probably not.
Except they currently do this, so... yes.
> 2) It is expensive for new entrants to build infrastructure. --> Yes, but if the ROI is sufficient, it can still get done.
> 3) Local / state government "franchise" agreements which grant incumbents monopoly (or near monopoly) status. --> the real killer. If the local government regulates you out of the market, it's game over.
It's not in the public's interest to allow a bunch of random companies to dig up our roadsides to lay a ton of fiber, over and over and over. So I don't see this changing.
1) ISPs agree not to compete; and
2) It is expensive for new entrants to build infrastructure.
It would be ideal to solve NN with free market.
But the ISPs have monopolies that prevent competition.
Making net neutrality necessary today.