Essay by PaperNerd ContributorUniversity, Master's November 2001

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There is little competition that has come out in local telephone markets. According to data from FCC and industry of Dec 1998, that the incumbent local telephone service providers controlled about 97% of the traditional wireline local telephone service market. However, there is fast increase the competing carriers have with number of lines; in 1998 alone, the number of lines of competing carriers serve has increased three times more. FCC and others have found that the competing carriers have concentrated on serving profitable business communities. There were also competing carriers serve in other markets as well, such as for the residential customers and customers outside the largest cities.

The New CLECs are using several different market strategies to try to get in to the local telephone markets. The research shows that the competing carriers were delivering services through all the method the 1996 Act envisioned, they are reselling ¡V that is like being retailers of incumbents services, leasing parts of incumbents¡¦ networks, or constructing their own facilities.

Moreover, both competing and incumbent carriers use an important strategy, that is simultaneous marketing and sale of a package of a variety of telecommunications services such as local and long-distance telephone service, Internet access, wireless telephone service, and video services.

The 1996 act and its regulations gave big changes on local telephone service markets. Ever since the act has passed, the competing carriers has tried to develop strategies to get in; on the other hand, the incumbent carriers also tried to find their own strategies. It is likely that the more competitions will develop even though there are only small competitions in local telephone markets.