Local Competition Prior to the Telecommunications Act of 1996

Competition for local service has been evolving since the early 1990s. Technological advances in fiber optics and switching equipment as well as regulatory events attracted billions of dollars for new entrants desiring to compete with incumbent telephone companies.

Uneven Competition for Local Telephone Service Throughout the U.S.

Prior to 1996, competitive access providers (CAPs) such as Metropolitan Fiber Systems, now owned by WorldCom and Teleport Communications Group (now part of AT&T), as well as long distance giants AT&T, Sprint and WorldCom, sold local telephone service. CAPs are the precursor of CLECs. CAPs sell fiber optic lines in cities for connections between long distance ...

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