So, if a telecom provider wants to bundle services, why shouldn't it?
Because the market for residential communications services cannot support what economists call "effective competition". The barriers to entry in "local loop" services are so high that allowing bundling stifles competition on the services built on top.
What should have been done back in 1984, and wasn't, is the unbundling of outside plant from telephone service (with both by preference provided by separate companies). By the late 1990s, most states understood this, and implemented a similar model for energy deregulation: you buy your energy from a competitive supplier, who then must contract with a regulated distribution company to deliver it to you.
-GAWollman