This leads to a fundamental implication; are operators creating artificial demand intentionally to drive market prices up with tiered pricing and data caps, while at the same time, screaming for more spectrum allocation? The question remains, what benefits operators the most, building out networks with extensive capital spending, or making more profits on the demand and supply curve?
Corporations Tend to Think Short-Term
Large corporations are notoriously short-sighted when it comes to, not only predicting, but acting on, consumer demand for the long-term. Since they are coupled to Wall Street fundamentals in creating short-term profits, spending for the longer term profitability usually takes a back seat. Put off today what can be worked out later for consumer demand. This is what we are seeing as network capacity demand outstrips the provider’s ability to keep up. See (The high cost of the cloud)