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Spectrum ownership and broadcast power limitations. To operate as a wireless service provider at the scale that cell phone companies do, you need the FCCs explicit permission. The process to get approval is long, expensive, and fraught with peril (see the LightSquared debacle [1]).

This kind of regulation is ultimately justifiable. You don't want service providers using conflicting technologies and hammering each others airspace. You quickly end up with what economists call the tragedy of the commons[2].

1. http://arstechnica.com/tech-policy/2012/09/lightsquared-redu... 2. http://en.wikipedia.org/wiki/Tragedy_of_the_commons




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