Telephones, competition, and the Candice-coated monopoly

Competition is expected to increase in the local telephone exchange during the 1990s, but is expected to remain practically absent in the long-distance market. While long-distance carriers, can now handle demand at reduced average costs with the advent of fiber-optic technology, competition is being stifled by regulatory agencies. If price regulations were lifted and competition allowed, stronger players like AT and T will dominate the market and smaller firms would be forced to develop strategies to keep revenues coming. Such a situation can only be beneficial to consumers.