FCC Releases Report on Local Competition

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Federal Communications Commission
1919 - M Street, N.W.
Washington, D.C. 20554 News media information 202 / 418-0500
Fax-On-Demand 202 / 418-2830
Internet: http://www.fcc.gov
ftp.fcc.gov

This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

December 4, 1998

RELEASES REPORT ON LOCAL COMPETITION

The FCC has released a staff report titled Local Competition. The report presents a summary of currently available statistical material, information from Common Carrier Bureau surveys, and information mined from other public sources. Information is presented for all states and, where available, for smaller geographic areas.
Revenues of local service competitors continue to increase rapidly, from a small base. These revenues doubled in 1997, to $3 billion. Incumbent local exchange carrier (ILEC) revenues, starting from a much larger base, continue to increase but at a less rapid pace. The net effect of these trends is a gain in market share by competitive local exchange carriers (CLECs), but their presence remains less than 5% of the local market.
Because the FCC does not have data on the number of customer lines that CLECs provide solely over their own facilities, the report does not contain information on the total number of customer lines that CLECs serve. As the report indicates, some industry observers believe CLECs currently provide a total of between 4 and 5 million switched lines, which is less than 3% of nationwide switched access lines. Where CLECs have chosen to use ILEC services (resold lines) or ILEC unbundled network element loops (UNE loops) to enter local markets, they use about 10 times as many resold lines as UNE loops, in the aggregate.
In 1994, no CLECs had acquired the numbering resources (central office codes) necessary to provide switched services solely over their own facilities. By the third quarter of 1998, CLECs had received such resources in every state except West Virginia. These facilities-based CLECs are concentrated in more urbanized areas, as opposed to rural areas.
The report is available for reference in the Common Carrier Bureau Public Reference Room, 2000 M Street, N.W., Room 575. Copies may be purchased by calling International Transcription Services, Inc. (ITS) at (202) 857-3800. The report can be downloaded [file name LCOMP98.PDF or LCOMP98.ZIP] from the FCC-State Link internet site at http://www.fcc.gov/ccb/stats on the World Wide Web.

FCC
For additional information, contact the Industry Analysis Division, Common Carrier Bureau, at (202) 418-0940, or for users of TTY equipment, call 202-418-0484.

	NEWS
	Federal Communications Commission 1919 - M Street, N.W. Washington, D.C. 20554	News media information 202 / 418-0500 Fax-On-Demand 202 / 418-2830 Internet: http://www.fcc.gov ftp.fcc.gov
	This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
	December 4, 1998
	RELEASES REPORT ON LOCAL COMPETITION
	The FCC has released a staff report titled Local Competition. The report presents a summary of currently available statistical material, information from Common Carrier Bureau surveys, and information mined from other public sources. Information is presented for all states and, where available, for smaller geographic areas. Revenues of local service competitors continue to increase rapidly, from a small base. These revenues doubled in 1997, to $3 billion. Incumbent local exchange carrier (ILEC) revenues, starting from a much larger base, continue to increase but at a less rapid pace. The net effect of these trends is a gain in market share by competitive local exchange carriers (CLECs), but their presence remains less than 5% of the local market. Because the FCC does not have data on the number of customer lines that CLECs provide solely over their own facilities, the report does not contain information on the total number of customer lines that CLECs serve. As the report indicates, some industry observers believe CLECs currently provide a total of between 4 and 5 million switched lines, which is less than 3% of nationwide switched access lines. Where CLECs have chosen to use ILEC services (resold lines) or ILEC unbundled network element loops (UNE loops) to enter local markets, they use about 10 times as many resold lines as UNE loops, in the aggregate. In 1994, no CLECs had acquired the numbering resources (central office codes) necessary to provide switched services solely over their own facilities. By the third quarter of 1998, CLECs had received such resources in every state except West Virginia. These facilities-based CLECs are concentrated in more urbanized areas, as opposed to rural areas. The report is available for reference in the Common Carrier Bureau Public Reference Room, 2000 M Street, N.W., Room 575. Copies may be purchased by calling International Transcription Services, Inc. (ITS) at (202) 857-3800. The report can be downloaded [file name LCOMP98.PDF or LCOMP98.ZIP] from the FCC-State Link internet site at http://www.fcc.gov/ccb/stats on the World Wide Web. FCC For additional information, contact the Industry Analysis Division, Common Carrier Bureau, at (202) 418-0940, or for users of TTY equipment, call 202-418-0484.