Bell Atlantic Receives Federal Approval to Enter Long Distance Market in New York

Strategic Insights -

Bell Atlantic, the first Baby Bell to enter the long distance market, has received federal approval to provide long distance service in New York state. As a result, the company plans to launch its long distance business and offer innovative new products at competitive prices to win over consumers. The move marks a significant step towards competition in the local phone market, with over 1.3 million business and residential lines already served by competitive local carriers in New York.

Key Takeaways:

  • Bell Atlantic is the first Baby Bell to receive federal approval to enter the long distance market in New York state.
  • The company plans to launch its long distance business on January 5, 1999, and unveil new calling products on January 4.
  • Bell Atlantic expects to win 25 to 30 percent of the $2 billion consumer long distance market in the region within five years.
  • The FCC approved Bell Atlantic's application to provide long distance service in New York state, citing the success of competitive local carriers in the state, which already serve over 1.3 million business and residential lines.
  • Over 55 percent of service in New York is delivered over competitors' own facilities.
  • The move marks a significant step towards competition in the local phone market, with many other states serving as "laboratories for local competition."

Statistics:

  • 25-30%: Bell Atlantic's expected market share of the consumer long distance market in the region within five years.
  • $2 billion: The size of the consumer long distance market in the region.
  • 1.3 million: The number of business and residential lines already served by competitive local carriers in New York state.
  • 55%: The percentage of service in New York delivered over competitors' own facilities.

Sources:

  • "Bell Atlantic gets OK for long-distance entry." UPI, inc. 22 Dec. 1998.
  • COMTEX (http://www.comtexnews.com)