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Bell was forced by Covad Communications to implement its own technology, the DSL broadband phone line. Barring criminal behavior, there is little that oligopolies can do to defend themselves against these forces. They can acquire innovative firms, intellectual property, and talent. They can form strategic partnerships.
As processors grow speedier, storage larger, applications multi-featured, broadband access all-pervasive, and the Internet goes wireless individuals are increasingly able to emulate much larger scale organizations successfully.
Broadband and cable modems let computers communicate at 300 times their speed only 5 years ago. Scarcity turned to glut. Demand failed to catch up with supply. In the absence of clear price signals the outcomes of scarcity the match between the two went awry.
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