Actually, your tax dollars for the last 40+ years subsidized the internet and you now pay your ISP because of their ability to leverage regulatory arbitrage against you. Their secret is their ability to get governments to give them money for delivering services that they then charge exorbitant fees for; it's a good game.
If you look at the cost structures of the networks in contrast to the tax dollars subsidizing them, you'll realize that the networks were basically paid for by the citizens and operated privately at a profit. Here's a good book on the subject: http://www.amazon.com/Broadbandits-Inside-Billion-Telecom-He...
>Also, your understanding of the point of a business is really flawed. Everyone can have perfect information and businesses can still function just fine. I continue to pay restaurants for food even though I know they are making a profit off me.
Sure, you definitely pay people for services where you are aware they are making a profit, but the reason those services make a profit is secrets: knowing where the best sources of meat come from, the best vegetables, the vendors who show up on time etc. All businesses have secrets.
And no, we cannot simultaneously have perfect information exchange and functioning markets. You might have microcosms of functionality, but the global economy would cease to function. Lots of deals are dependent upon one side believing the other side is not cheating them. With perfect information, all of those secrets would be revealed and the consequences would be unpredictable at best and dire at worst.
There are some businesses where secrets matter, but the vast majority are just in existence because they have infrastructure setup to do things cheaper/faster than you could yourself.
All businesses have secrets and they matter. The cheaper/faster portion of the business is a form of information arbitrage. Cheers.