Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Applications
    • Applications

    Long-Distance Carriers Loss Might Be the RBOCs Gain

    Written by

    Caron Carlson
    Published July 15, 2002
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      With the downfall of Worldcom Inc., choices among enterprise long- distance voice services are diminishing. But, ironically, it is local telephone companies, once targeted to face competition in their own markets from long-distance providers, that are moving to fill the void.

      The move could stabilize a volatile market, but as local companies move closer to business-grade services, prices are likely to rise, industry insiders say.

      In 1996, policy-makers touted the Telecommunications Act as a way to promote competition in local telephony by allowing companies such as WorldCom, AT&T Corp. and Sprint Corp. into the local market. Six years later, the policy appears to have backfired. Few users can turn to long-distance carriers for local service, but by this fall, users in almost half the states might be able to turn to their RBOCs (Regional Bell Operating Companies) for long-distance services.

      The Federal Communications Commission has granted approval for RBOCs to provide long-distance offerings in 15 states and is scheduled to rule on another 12 states in September.

      Thus far, local carriers, such as Verizon Communications Inc., SBC Communications Inc. and BellSouth Corp., have lured a considerable number of local subscribers to long-distance but have made scant inroads in the business market, primarily because they dont offer adequate data services bundled in.

      “[The RBOCs] are only getting the customers that the [long-distance carriers] dont want,” said Phil Jacobson, an analyst at Network Conceptions Inc., in Vienna, Va. “If youre looking for truly competitive services, the evidence shows so far that when it comes to heavier telecommunications users, Verizon and SBC have not been able to take any market share.”

      Despite their weak debut in long-distance, RBOCs in the long run are widely predicted to consolidate voice telephony. WorldComs recent financial debacle may accelerate that trend, according to analysts.

      “What WorldCom is really trying to do is sell the MCI unit to an RBOC,” said Jacobson, who spent 14 years at the former MCI Communications Corp. in finance and marketing. “Verizon is just lucky that this happened to WorldCom because now they could get it at a good price.”

      RBOC control of the long-distance business would likely bring stability to the volatile market, but it would also likely increase rates, analysts said.

      “If you look at the carrier business around the world, it has been savaged,” said Allan Tumolillo, an analyst at Probe Research Inc., in Cedar Knoll, N.J. “The RBOCs act differently than most other carriers: They buy slowly, they buy standardized equipment, they seek reliability and they seek price stability.”

      Caron Carlson
      Caron Carlson

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.