A staff paper submitted to the President's Task Force on Communications Policy recommends that public policy ensure an integrated structure in the telecommunications industry, while fostering limited competition to keep the system responsive to new technology and to consumer demands. The present system of regulated monopoly for companies supplying basic services should be continued, but more liberal rules of entry into the telecommunications market should be devised to encourage diversified new services as they become technologically feasible. Along with a history of the telecommunications industry and a description of its present structure and regulation, specific issues confronting the industry are discussed--including the problems of long-haul transmission, network interconnections, and computer telecommunications. Rate structure revision is recommended and Western Union's merging with the Post Office suggested. Special studies appear as appendices to the report. (BB)