In the 1990s, deregulation (in the US, the Telecom Act of 1996) and technology convergence began to cause massive upheaval in the industry.

"Verizon's wholesale rates do not comply with the requirements of the Telecom Act, and do not permit meaningful competition."

"There are 76 fewer TV broadcasters today than just before the Telecom Act was enacted," Mr. Bowman added.

Mr. Roth added: "Despite the uncertainty in the Telecom Act and the various challengers, no one seems to be backing off on getting into the business.

Instead the Telecom Act of 1996 was implemented in a form that resulted in the reduction of telecommunications competition in the local loop.

In 1997, Cox became the first multiple system cable operator to offer phone services to customers following the 1996 Telecom Act.

AT&T said in a statement: "The Telecom Act was supposed to make competition easier, not harder.

"If this doesn't deliver on the promise of the Telecom Act of '96, I've just missed my bet," he said in an interview yesterday.

"This is the deal that is the make-it-or-break-it for the Telecom Act," he said.

"This will be a hearing where the senators share their concerns about the Telecom Act of 1996."