State intervention would crowd out private firms  The imposition of a powerful state firm dominating the broadband market would serve to reduce the ability of private providers to compete. The greater resources of the state would be able to give it the power to dictate the market, making it less attractive to private investment. Creating a monopolistic provider would be very dangerous considering that this is a sector upon which much of future national development relies. [1] Crowding out private firms will make them less inclined to invest in new technologies, while the state provider is unlikely to fill the gap, as traditionally state utilities rely upon their power of incumbency and size rather than seeking novel services. An example of this is Eircom which, when it was the state utility, provided broadband of a lower quality and at higher price than most private providers. The end result of state dominance and reduction of private competitors is a loss of innovation, a loss of price competition, and an erosion of customer service.  [1] Atkinson, R. “The Role of Competition in a National Broadband Policy”. Journal on Telecommunications and High Technology Law 7. 2009,