The major forces shaping the business environment of the fixed‐line telecom industry are technology and government policy. The industry has been influenced by fiber optics (greatly increasing transmission capacity), new modes of telecommunication (wireless and internet telephony), the convergence of telecom and cable TV, and regulatory change (including the opening of fixed‐line infrastructures to “virtual operators”). Using the five forces of competition framework, show how each of these developments has influenced competition and profitability in the fixed‐line telecom industry.