The U.S. Stake in Competitive Global Telecommunications
In the few countries where facilities-based competition has been permitted, regulatory rules generally limit the scope of competition. New carriers are often not afforded the competitive safeguards necessary to facilitate effective competition. In particular, no major foreign economic power requires its incumbent carrier to offer its competitors equal access (induding dialing parity). Thus, the new entrants must overcome expensive, inferior connections that require customers to dial extra digits and marketing disadvantages that inhibit customers from leaving the incumbent. Even where a modicum of competition has been permitted, laws and regulatory rules often leave opportunities for the incumbent to use its market power to forestall competition.