Local telecommunications competitors : Strategy and policy

This article analyses current policy issues involved in the development of local telecommunications competition in the USA. Although rate structures that subsidize residential consumers may ultimately be threatened, viable local competition could solve many current regulatory problems. While it is difficult to assess the state of competition, it currently appears to be nascent rather than established. The article examines in detail the role of emerging fibre-optic-based competitors in large US cities and shows how their strategies have evolved. Using New York City as a case study, the article analyses city and state policy options towards emerging competitors in the near future.