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1 1 (1997)

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                                                This book  captures the
                                                effects of alternative tele-
                                                communications   technolo-
                                                gies offering access to the
                                                switched telephone net-
                                                works  on the marketplace
                                                for local telecommunica-
                                                tions services. Ingo
                                                Vogelsang  and Bridger
                                                M.  Mitchell focus on the
                                                local exchange carriers as
                                                actors facing new types of
                                                competition within the
local access and transport areas defined by the 1982 consent decree that
divested AT&T   of its local operating companies. Thus, the territory is not a
single local market-the last mile to the final consumer-but rather a set
of possibly many markets, covering roughly the last ten miles to the con-
sumer. In each of those markets a local exchange carrier is the dominant
firm. The competitive arena includes most of the services that local exchange
carriers now offer, in particular, interconnection services-those that link one
network  with another-offered  to and by the new competitors. Related mar-
kets, such as the cable television market, are relevant to the extent that cable
television companies want to enter markets dominated by the local exchange
carriers and to the extent that the local exchange carriers in turn want to
enter the cable market.
        Vogelsang  and Mitchell directly analyze the most pivotal issues
 raised by the Telecommunications Act of 1996. This book is the first study to
 evaluate the FCC's landmark order on implementing  the local competition
 provisions of the act.

 Ingo Vogelsang is professor of economics at Boston University.
 Bridger M. Mitchell is a vice president at Charles River Associates and
 director of its California office.




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