It's not regulation that causes there to be few choices among telecoms. It's the extremely high barrier to entry which is created by numerous factors, many natural.
Personally I sorta agree with you though, that I would rather have regulations that seek to break down the barriers to entry. For instance, require telcom companies to connect homes to a fiber network for a flat connection/service fee, and then allow any ISP to sell those customers internet access.
This is functionally like the network we had during the dial-up days. And the result was thousands of ISPs giving the typical customer dozens of choices. There was no need for government or anyone else to protect network neutrality because the market was functional, as is demonstrated by AOL finding it increasingly necessary to dismantle their walled-garden service to compete with the independent guys.
There were some halfhearted attempts to give ISPs access to the COs to offer DSL service beside the local telcom, but telcoms have been successful in sabotaging it.
The infrastructural barriers to entry are nontrivial, to be sure.
Further restrictions -- for example, kneecapping pricing structures that companies can use to differentiate themselves -- will only exacerbate that, though.
Another thought is that with the right market dynamic, I have more variety than it seems at first blush: cable, DSL, fiber, dial-up, satellite, WiMax, 3G, power lines, and possibly others. There's a variegation of technical specialty there that lends itself to horizontal competition by many companies. For heavy usage, several of these are currently poor... but looking at our present options and determining that only cable and fiber matter, for instance, is selling innovation short. It's surprising what can crop up out of nowhere when someone sees an unexploited opportunity.
The reason there hasn't been a mass flight from the standard telcos yet, I think, is that packet profiling has largely taken the form of capping torrents for heavy users, which is a small minority of the market -- and they're arguably being capped for the benefit of the majority. If the telcos make a gamble on harming access or speeds for the majority, there will be a scramble for alternatives, and they will present themselves.
Legislation is too often proposed with the deeply flawed assumption of an inelastic economic model.
Personally I sorta agree with you though, that I would rather have regulations that seek to break down the barriers to entry. For instance, require telcom companies to connect homes to a fiber network for a flat connection/service fee, and then allow any ISP to sell those customers internet access.
This is functionally like the network we had during the dial-up days. And the result was thousands of ISPs giving the typical customer dozens of choices. There was no need for government or anyone else to protect network neutrality because the market was functional, as is demonstrated by AOL finding it increasingly necessary to dismantle their walled-garden service to compete with the independent guys.
There were some halfhearted attempts to give ISPs access to the COs to offer DSL service beside the local telcom, but telcoms have been successful in sabotaging it.