PPT Slide
The performance of incumbents varies enormously
- Partly, it’s “managerial Darwinism” in the presence of rate-of-return-based regulation
- Partly, it’s that the 1984 divestiture allowed LECs to enter other businesses (real estate, entertainment, cable television … pretty much anything except long distance); some LECs did this with a vengeance, to the detriment of their core business