The problem comes when consumers do not have access to competing services, and as a result are locked into the local incumbent provider.

RFI is controlled by the same government group that controls Trenitalia, the incumbent provider of passenger train services in Italy.

Among the hiccups, she said, were bureaucratic nightmares when transferring customers from the incumbent providers, as well as serious technological glitches.

The two incumbent providers - SBC and Verizon - have largely avoided invading each other's territories.

See national broadband plans from around the world, many of which were motivated by the perceived need to break the monopoly of incumbent commercial providers.

"It is not surprising that new entry to a market, once 100 percent controlled by the incumbent provider, is taking significant effort."

This means a small percentage of the revenue created in delivering the call is taken from the incumbent provider and passed to the owner of the number.

But the retail model was challenged by incumbent providers in public settings and at the Utah State Legislature.

If through the combination they are able to bundle services and be more competitive with the incumbent providers, it's a good thing.