The paper presents how FCC adopted UNE rule in telecommunication industry and proceeds to analyze the rea- son why the UNE regulation is a failure.According to the result of UNE regulation,it can be drawn that promoting com- petition through mandatory collaboration between two competitors is too difficult to achieve.The feasible way to facilitate competition is to liberate the market forces rather than regulate the market.In the light of the failure of UNE policy,it can be concluded that the best way to introduce competition in telecommunication industry is to encourage inter-modal competition by rival networks.