  Rules are necessary to provide or shape the incentives of individuals and
organizations. This is particularly true when free markets lead to undesirable
outcomes. The Telecommunications Act of 1996 attempted to create incentives to
foster competition. Ambiguity as well as the timing of the Act has led to
delays in the clarification of rules and the rapid obsolescence of the
document. The paper presents the strategies that common carriers adopted to try
to tilt regulation in their favor, slow the entry of competitors, maintain
their market leadership, and expand into other segments. Some of the strategies
analyzed include lobbying efforts, court challenges, and lack of cooperation
with new entrants.
