This astonishing size and level of centralization accustomed the employees of that business to a bureaucratic, sluggish, centrally organized structure. When the organization hasn't failed, employees with a bad attitude, excellent job security, a strong union, or highly protective sweetheart contracts often have. The landscape is shifting, upending the phone companies. As they flail about, trying to recover their balance in response to packet-switched networks, such as the internet, wireless technologies, satellite communications, and other novelties, they make costly mistakes. If giants start to fall, even the smaller competitors can be hurt.
Phone companies are nervous, edgy and frequently reactive.
Technology is getting harder, but the technicians aren't getting smarter. A centrally owned and operated network requires the owner and operator to keep up with all the end points, an increasingly difficult proposition. Snoops in the government want more and more help. Not content with the wiretapping abilities they had, the government finally achieved a wish list item that federal law enforcement authorities had dreamt of for decades. The telcos have complained that the government has nickled and dimed them on the costs and filed suit for relief.