ber 2004). table 9-1). The result was a rapid decline in the average price of long- distance services to levels that are very close to U.S. rates or perhaps slightly lower, despite the fact that competition in U.S. long-distance services began almost twenty years before Canada liberalized its market. By con- trast, local competition in Canada has grown very slowly. In 2003 the new competitors accounted for 5 percent of access lines and only 4 percent of revenues, most of it coming from business service. Industry Canada listed 117 "alternate providers of long distance," 497 resellers, and just 20 competitive local exchange carriers (CLECs) in 2002, but only three major national entrants-Call-Net, Allstream (formerly AT&T Canada), and GT Group-have been able to capture much market share. Call-Net and Allstream offer long-distance and local voice services as well as data services. GT is primarily an Internet/data services provider. Each of these companies has encountered severe financial problems. Call-Net had a market capitalization of less than US$140 million at the end of 2003 and outstanding long-term debt of US$327 million. Its stock fell by more than 90 percent after the introduction of local competition in 1997, and it has recently gone through a major financial reorganization. AT&T Canada had been a subsidiary of AT&T until recently, but it too was reorganized financially because of continuing losses. In October 2002, AT&T negotiated with the holders of Can$4.5 billion of AT&T Canada's debt to accept a 69 percent interest in exchange for the debt. According to AT&T's quarterly report to the Securities and Exchange Commission in November 2002, this transaction "cost" AT&T upward of $2.5 billion. 10 AT&T Canada was reorganized as Allstream in June 2003 and was acquired by Manitoba Telecom Services, the Manitoba incumbent, in 2004 for Telecom Reform in Other Countries Can$1.2 billion. GT also encountered severe economic problems. After sev- eral years of losses, it was sold to 360Networks in 2002 for US$168 mil