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This decrease of income is a result of competition due to a low demand in residential and small business lines from independent startup telephone companies that was created by the 1996 Telecommunications Act. The competition in the local phone market finally undid some of the regulation that the company had long lobbied to overturn. While the old system had required BellSouth to return a portion of its profits to its customers, and letting the competitors flock into its territory (BellSouth Corporation, 1999).
The communications industry was drastically changing in the late 1990's, as companies consolidated...
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