And this is again a failure of government, not capitalism. As an analogue, you cannot say that socialism is a flawed system purely because of what happened in russia-you must not mix up economic and political philosophies.
And on the contrary, I absolutely do hold the failure of the Soviet system against central planning and command economies, even socialist ones. Given that, I find democratically-executed socialism using markets for prices (some consider this market socialism) much preferable.
Telecom monopolies are not by government intent by rather by regulatory capture.
As a capitalist, I hella want to exclude others from the market. If I can get the government to do this for me, then I'm willing to pay the lobbyist fees to make that happen. In the IP space the only reason I'm willing to slave away at invention is the possibility of a patent, a right to exclude, a limited monopoly.
As a capitalist, the absolute last thing I want is a free market. Thiel puts it this way: competition is for losers.
On the other hand, software patents.
We have generally forbidden dumping barrels of spent oil in rivers, for example.
Likewise, a non-capitalistic system can forbid or not pollution.
http://www.sandman.com/images/oldpolewires1sm.jpg
They were government regulated until that didn't work, then broken up. After the subsequent deregulation, the monopoly is in the process of re-creating itself now.