It really doesn't matter now for telephone service. VoIP from companies without a physical network (ie, Vonage, Packet8, etc.) and from cable television companies is gaining a lot of traction. Even AT&T is offering a VoIP service.

If you want DSL, most telephone companies will provide you with naked DSL. This is DSL without a dialtone or telephone service.

Without some people's need or desire for DSL, the physical telephone network is largely unnecessary for residential use. Mobile phones have become the only telephone for many of my friends.

I assume Verizon (a company formed from several Baby Bells) is rolling out their fiber to the premises service with television quickly due to pressure from the cable tv companies as most now offer TV, Internet, and phone over one physical wire and on one bill. Sounds like competition to me...