This report investigates the structural and economic implications of the divestiture of AT&T and the subsequent introduction of competition into the United States telephone industry. Peter W. Huber, a senior fellow at the Manhattan Institute and legal scholar, synthesizes extensive regulatory data and market analysis to evaluate whether the transition from a regulated monopoly to a competitive landscape effectively served consumer interests and technological innovation. The framework focuses on the tension between antitrust enforcement and the inherent natural monopoly characteristics of local exchange networks.

Experts frequently cite this report as a foundational document for understanding the legal and economic complexities of the post-divestiture era in American telecommunications. Readers note the high density of the prose, which reflects the technical and legal rigor required for policy analysis during the late 1980s.