There is an ongoing confusion about what is the free market and what is corporatism/fascism. The free market provides for free competition between individuals where all transactions are voluntary and no force is used to interfere with any interactions between parties. In a corporatist/fascist environment the government uses force to interfere in nearly all aspects of the market. In fascism, corporations end up in bed with the government and the corps use that power to get what they want while the government sells the idea by using propaganda to fool people into thinking that "it's all for your own good".
When the government is in charge of setting rates for internet access this is the farthest thing in the world from a free market. What it is, is soviet style socialist central planning.
But there seems to be a strong desire to blame the free market for all woes, despite the obvious government interference in all aspects of these interactions.
What is free about having the government set the policies for internet charges?
In a free market the government wouldn't be involved at all, and the rates would be determined via competition.
Take a look at markets that are relatively more free, such as the cell phone market and the market for computer chips. Quality and features improve while prices go down over time.
When I admire my HTC Android phone I marvel at the quality and features and the amazing technology. This is the result of healthy competition.
Take a look at markets where the government is involved such as health care. Quality and choice are reduced while prices go through the roof. (and no, that's not going to change with "obamacare")
Please don't confuse markets that are highly regulated and controlled by the government with free markets. They are polar opposites.