[semantics]

I was worried my comment would make it appear that I had not read the article - I did, I just didn't think that the author gave regulatory capture sufficient weight and/or made it appear that Schumpeter had written about or accounted for its importance.

As for its general inefficiency: the examples of Bell Labs & the Hollywood studios are good counterexamples, both were unstoppable and required direct government intervention.

One of Wu's points is of the different nature of telecommunications (and common carriers in general).

I am in 100% agreement with you on the last two points.