The rapid increase in inter-modal competition in telecommunications markets has resulted in traditional local exchange telephone companies facing significant financial pressures. The increasing acceptance of wireless as a substitute for traditional voice services, combined with the more recent roll out of digital phone service by cable companies operating in rural areas has brought the need to deal with these financial pressures to the forefront. This paper examines the cost structures of New York State's incumbent local exchange telephone companies and in doing so, sheds light on possible operational improvements which could aid the incumbent companies in managing the competitive transition.
Richard E. Schuler, Jr.. "Economies of Scale and Scope in Increasingly Competitive New York Local Telecommunication." Proceedings of the New York State Economics Association. vol. 6, October 2013, p. 191-202
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