Why is the telecommunications market so monopolistic?

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For almost one hundred years telecommunications users have had very restricted freedom to choose how their needs should be met. Apart from entirely internal systems, they have had to rent or buy terminals from the telecommunications companies owning the common user network, whether owned by the State, or by a public or private corporation. Even internal wiring normally had to be provided by the same telecommunications company. The user had to take whatever services, whatever standards, and whatever charges the telecommunications companies decided were appropriate. Such monopolistic power, albeit regulated directly or indirectly by the State, allowed users negligible freedom of choice. Manufacture of telecommunications equipment and systems were similarly constricted. Manufacturers were obviously reluctant to allocate resources to research and development and the production of equipment and systems until they were certain the telecommunications companies were prepared to go into contract with them for manufacturing these supplies for their “captive” users.

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explanation:

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