How Verizon can Remain Competitive
Telecommunications is still a relatively young industry, and it has faced incredible growth during its short lifetime. That many people alive today did not have individual telephone service in their youths seems almost incomprehensible in today’s era, when people often have at least two and sometimes many more ways of instantly communicating with one another. However, like many rapid-growth industries, even industry leaders can encounter significant difficulties when trying to remain viable. Part of this was due to the way that telecommunications has evolved. Telecommunications was initially a local industry, which was maintained by small, independent telephone companies. In fact, local phone companies had monopolies in witch people were unable to obtain phone service without resorting to the local phone company.
At first these local monopolies were seen as necessary and good for both the consumer and the industry given the large infrastructure requirements of a telecommunications network. By 1974, In fact one company would grow their monopoly so large that that by 1974 theDepartment of Justice would file an antitrust suit against them. This would be come known as the Bell System divestiture, or the breakup of AT&T.
Telecommunications Act of 1996
Congress passed the Telecommunications Act of 1996, Pub. LA. No. 104-104, 110 Stat. 56 (1996). The goal of the Telecommunications Act of 1996 (Act) was to increase competition, by allowing anyone to enter the communications business and compete in any market. However, the result of the Act was actually a decrease in competition. Almost immediately, companies began merging and acquiring one another. While there are several smaller telecommunications companies, industry giants emerged, and merged. At this point in time, it is clear that Verizon is one of the two major industry leaders in the... [continues]
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