Competition as the problem, not the solution?

Eli Noam discusses the “New Volatility” of telecom at the ITU Telecom 2003 show (via Isen.blog):

“Suppose the
problem is that the competitive system weÂ’ve nurtured so carefully is
actually the cause of the crisis, not the solution,” says Noam. “We
need to face the fact that the reason for todayÂ’s instability could lie
in the fundamental characteristics of an industry with high fixed and
low marginal costs.”