To: Alejandro who wrote (8572 ) 10/7/1998 10:28:00 PM From: DubM Read Replies (1) | Respond to of 12468
Ali, the market caps as of close today: TGNT-1.190 Billion WCII- 569.4 Million Makes Teligents value 2.09 times WinStar's. Could this be having an effect on CLEC's? State-by-State Research by Data Communications Exposes Failure of Telecommunications Reform Act MANHASSET, N.Y.--(BUSINESS WIRE)--Oct. 7, 1998--Original state-by-state research conducted by CMP Media's Data Communications magazine reveals that the Telecommunications Reform Act of 1996 has failed. A major investigative article, ''Brave New World Betrayed,'' appearing in the current (October 1998) issue examines the degree of competition within each jurisdiction. Its findings identify each state's dominant incumbent local-exchange carriers (ILECs), the number of new competitive carriers and statistics on the shift in access lines away from the entrenched carriers. A similar study currently is being conducted by Congress for release next year. The article reports that the act has not met its goals of opening local monopolies to competitors--long-distance carriers, cable companies and startups--and allowing ILECs to offer long distance in their regions. Instead, chronicles Data Communications Associate News Editor Robin Gareiss: ILECs--the regional Bell operating companies (RBOCs) and dominant local providers like GTE Corp [NYSE:GTE - news].--still control more than 99 percent of local lines. No incumbent has won approval to offer long-distance services in its region. The wait to obtain high-bandwidth lines can be as long as three months. -- Prices for many services are higher, not lower. Among the price increases cited are a monthly cost for T1 Internet access to $2,700 from $2,300 in 1996. Additionally, an AT&T T1 line between New York and Chicago costs $7,435 today, up from $5,945 in 1996. In addition, the article points out the market-consolidation trend. Before the act, there were eight incumbents--the seven RBOCs and GTE. If pending mergers are approved only four will remain, meaning fewer choices and the fear of Ma Bell's return. The expose cites multiple reasons for the act's failure. These include the incumbents' lack of cooperation and diversion of billions of dollars to fight the act instead of rolling out new services; faults in the law; the Federal Communications Commission's inability to manage reform; the newcomers' failure to seek residential business; and resolution of technology issues. The magazine reports that Congress now is considering overhauling the act. ''Brave New World Betrayed'' is part of a special report about the new public network. A companion piece, ''Building the Brave New World,'' is an examination of technologies behind the new public network. ''Brave New World, Brave New Vendors'' examines how the scramble to build a new telecommunications network is driving mergers and acquisitions. In addition to being published in the October issue of Data Communications, the special report about the new public network will be posted to the magazine's Web site, data.com . Data Communications is the only global networking-technology magazine written for network managers and architects who design, build and operate multisite, mission-critical networks. It provides in-depth, comparative information on the products and technologies needed for vital communications infrastructures. CMP Media Inc. (Nasdaq: CMPX - news) is a leading high-tech media company providing essential information and marketing services to the broad technology spectrum--the builders, sellers and users of technology worldwide. With its portfolio of newspapers, magazines, custom publishing, Internet products and conferences, CMP is uniquely positioned to offer marketers comprehensive, integrated solutions tailored to meet their individual needs. Online editions of the company's print publications, along with products and services created exclusively for the Internet, can be found on CMPnet at cmpnet.com . NSTL, the company's independent testing lab, serves government, corporate and technology-vendor clients around the world.