Genuine competition in local phone service is a long distance off; to understand why, a visit to South Carolina helps; it's a very ugly battle; 'the dog ate my homework.' (Open and Closed) (Industry Trend or Event)
Article Abstract:
Telephone deregulation has failed to produce new competition despite lowered barriers between long-distance providers and local-phone monopolies. AT&T, MCI and Sprint maintain more than 80% of the US long-distance market, while the Bells and GTE still dominate most local phone service. The Telecommunications Act of 1996, which also promised lower consumer prices, instead has fueled nearly $100 billion in 1997 industry mergers. A key provision calls for local phone companies to allow competition before receiving approval to offer long-distance service. The law includes a 14-point 'competitive checklist' and a 742-page order to implement it. An unexpected question is when no new rivals enter the local phone market. South Carolina serves as an example, with 3.7 million residents and 2.1 million phone lines. By comparison, the Manhattan market boasts 2.4 million lines. Bells and the long-distance giants have gone to court to define 'real' competition or a truly 'open' market.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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Bell Atlantic gets a boost in plan to sell long distance in New York
Article Abstract:
Bell Atlantic has received tentative approval from state and federal regulators to offer long-distance services in New York state. Full government endorsement would make Bell Atlantic the first Baby Bell to serve long distance in its region, which could pose problems for long-distance companies such as AT&T. New York State Public Service Commission Chmn John O'Mara said he would support Bell Atlantic if the company takes additional measures to open its local-phone market for competition. Justice Department antitrust chief Joel I. Klein wrote that meeting those conditions probably satisfy its open-competition requirements for entry into the long-distance business. Bell Atlantic, New York, represents the strongest competition for AT&T and other long-distance carriers because it controls most of the local-phone business from Maine to Virginia. This region is a popular destination for Europe-based phone calls.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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