ABSTRACT
The telecommunications industry has long been regulated in a two-tiered structure. It is regulated both at the federal level and by state regulatory authorities. The long-distance industry saw the most immediate and dramatic effects of the divestiture, as AT&T changed overnight from a single integrated full-service telecommunications carrier into a long-distance carrier and manufacturer. With the changes in the telecommunications market due to divestiture, universal service was formalized to some extent, at least within the regulatory world. The desire for changes in the Telecommunications Act had begun twenty years earlier, when AT&T attempted to get Congress to intervene in the move towards competition in the long-distance market. As competition increased, the regulations governing long-distance service were adapted to suit changing overall conditions and market shares. Resellers have played an important role in the development of long-distance competition because they have been able to buy services in bulk and resell them to a variety of customers at discounted prices.
