at&t to take biggest hits in long-distance fight
A new report from Northern Business Information, New York, predicts that at&t will lose its dominant role in the U.S. long-distance communications market. The study, 1997 U.S. Long Distance Markets, says that as local telephone companies enter the long-distance arena, at&t`s share of the action will drop from 55% to 38% by 2001.
Northern Business Information predicts that the regional Bell operating companies will garner 13% of the inter-local access and transport area (lata), long-haul market once the Telecommunications Act of 1996 is finally implemented.
"For the first time, we will soon have a long-distance market without a dominant player," says Northern Business Information senior analyst Steve Koppman in a quote released with the unveiling of the report. "at&t is hemorrhaging already. When the [Bells] enter the inter-lata market, they will take most of their share from at&t. Factoring in the redefinition of the long-distance market to include intra-lata, we project at&t`s share will fall below 40% by the year 2000....When that happens, at&t`s patina of dominance will be irretrievably lost, leading to further market erosion."
In addition to predicting at&t`s fall from the long-distance throne, the report says that the $93 billion combined inter- and intra-lata U.S. long-distance market will expand at a 5.6% compound annual growth rate through 2001. Increases in international calling, high-capacity private line, toll-free, and public data services will spur this expansion. Current network and bandwidth constraints, intensified by Internet usage, will ease as carrier`s carriers such as ixc and Qwest complete their fiber build-outs, says the study. Finally, the reseller market segment will continue to grow and consolidate.
Northern Business Information`s 1997 U.S. Long Distance Markets can be purchased for $3995 in the United States by calling Datapro Information Services Group at (800) 328-2776 or (609) 764-0100. For prices outside of the United States, contact your local Datapro office.u