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Has a Different View

November 10, 1985

"U.S. Telecom Is Preparing for Big Shakeout; Expects to Gain Edge With Own Network," (Oct. 24) indicated that someone in our organization shared the view that ownership of transmission facilities is essential for survival in the long-distance industry.

In fact, our fundamental policies as well as our analysis of the industry are dramatically different from the view expressed in the article and attributed to our spokesman.

The Competitive Telecommunications Assn. represents resale carriers, facilities-based carriers and companies that combine resale with their own facilities. For each type of carrier there are ample success stories.

Similarly, companies across the industry spectrum have strongly positive expectations for the future.

For resellers, in particular, one of the principal reasons for renewed optimism is the growing availability of inexpensive transmission capacity. The advent of fiber-optic networks, combined with existing microwave and satellite systems, present the resale carriers with an abundant choice of lower cost transmission facilities.

This in turn helps to keep the resellers cost-competitive with AT&T. Likewise, as the article mentioned, the facilities-based carriers are also building or leasing similar networks, improving their own competitive positions. If there is a threat to the emergence of real competition in the long-distance market--and there may well be such a threat--it comes not from the ownership or lack of ownership of facilities.

Rather, the emergence of true competition may be jeopardized by misguided regulatory policies that artificially and unnecessarily impede the development of competition.


Executive Director,

Competitive Telecommunications Assn.


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