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Econ Focus

Beyond the Turmoil

After a period of rapid and uneven growth, the telecommunications industry in the Fifth District is in the midst of a painful reorganization as service providers rethink how to meet customer demand.
By Charles Gerena


What About the Little Guys?

Competitive local exchange carriers (CLECs) tend to focus on medium-to-large enterprises in major metropolitan areas, leaving homes and small businesses to the regional Bell operating companies (RBOCs) and other incumbent local exchange carriers (ILECs). The result — fewer options and higher prices for telecom services in some markets.

Percentage of Lines Provided to Residential and Small Business Customers

  ILECs CLECs
District of Columbia 33 13
Maryland 64 23
North Carolina 81 20
South Carolina 82 6
Virginia 68 58
West Virginia 74 *
U.S. AVERAGE 77 45
*Data withheld to maintain firm confidentiality

Source: Local Telephone Competition: Status as of June 30, 2001, Federal Communications Commission

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