The government effectively established monopolies in phone service. Telephone numbering was not even close to seamless and painless. When dialing was introduced there was pushback and plenty of need for education of consumers, not to mention concerns about the loss of jobs for telephone operators. Establishing international numbering and the ITU has been a costly and slow diplomatic process.
The result is a system which is now almost useless because of the lack of spam prevention that facilitates elder abuse at a large scale.
If it wasn’t a legacy technology, I certainly wouldn’t recommend the telephone to my mother as a product.
The reason we have alternatives now is that there was no regulation preventing us from developing VoIP and other communications services via the internet.
Frankly it’s weird that we would even consider the telephone as a model for current regulation. It’s an antiquated legacy stepping stone from the time before computers.