Thursday, March 29, 2012

EU, How About a Public Option for Mobile Phone Users?

The EU has chosen to continue its system of price controls on mobile phone roaming and internet services.  Isn’t there a simpler way?  Why not create an EU-wide public enterprise to provide connectivity under the condition that it cover its cost of capital, and then let private firms compete with it?  If they can overwhelm the public entity with a great burst of innovation, fine.  If not, too bad.  Doesn’t this make more economic sense than trying to micromanage the price structure?

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