Free market competition works.
But that's when there's an actual market where customers can pick and choose. When you're dealing with a defacto monopoly the free market dictates will profit as much as possible. It's just what they do. I do think that telecommunications infrastructure should either be a public entity like roads, or at least regulated to have a modicum of reason to their rates. I understand the pitfalls of government regulation, but you know what, the telcos have screwed themselves and us over so anything is better at this point.