anies and cable TV operators against the interests of consumer groups and other competing companies. Large businesses that are dominant in the market often push back against regula- tions that are intended to foster competition. These organizations understandably see regulations as potentially costing them market share or impinging on their operations in other ways. Regulatory rules are critical factors in the success or failure of carriers. They impact pricing, billing practices, and decisions as to whether to build or lease network infrastructure. The following quote from the 2003 annual report of BellSouth (now a part of AT&T) is still relevant: Our future operations and financial results will be substantially influ- enced by developments in a number of federal and state regulatory proceedings. Adverse results in these proceedings could materially affect our revenues, expenses, and ability to compete effectively against other telecommunications carriers. THE 1984 BREAKUP OF AT&T Prior to 1984, the Bell system consisted of 22 local Bell telephone companies that were owned by AT&T Corporation. The Bell telephone system was named after Alexander Graham Bell, who is credited with having invented the telephone. The 1984 Breakup of AT&T Customers had one point of contact for all of their telecommunications require- ments. The former AT&T did all of the following: Sold local, interstate, and international long-distance telephone services Manufactured and sold central-office switches, customer-premises telephone systems, electronics, and consumer telephones Conducted research and development Published yellow and white-pages telephone directories This changed in 1984 when the Unites States Justice Department forced the com- pany to divest itself of major assets and services, split off the 22 local Bell telephone companies, and constrained it to sell only local services, and yellow and white-pages directories. Divestiture was instituted because it was felt that AT&T's 22 local compa- nies created artificial hurdles when