[JamesBarney]

The root problem is that telecommunications is similar to utilities in that it is a natural monopoly.

Basically imagine if someone owned the only bridge into San Francisco. They could charge whatever people were willing to pay. But you would think if they charge too much money or scream obscenities at everyone who drives through, then someone could build another bridge and steal their customers. The problem is that if anyone builds another bridge the bridge owner could stop screaming obscenities and lower his prices. Then the second bridge could not make the return on capital. The prospective business owner and current owner know this so the status quo of one expensive and crappy bridge remains.

[0]https://en.wikipedia.org/wiki/Natural_monopoly