ABSTRACT
By 1993, the worldwide market for telecommunications is projected to surpass the trillion-dollar mark. The United States accounts for 40 percent, or $142 billion, of worldwide telecommunications expenditures, which collectively amount to about $335 billion. The US telecommunications equipment industry historically has been dominated by a small number of very large producers. The largest, Western Electric, accounts for roughly 65 percent of total US output. Western Electric is the manufacturing arm of American Telephone and Telegraph (AT&T), which is the largest consumer of telecommunications equipment. Historically, the nonaffiliated or independent equipment manufacturers have sold principally to independent telephone companies and private buyers. In 1982, independent telephone companies accounted for 18 percent of demand. The telecommunications industry has been a major focus of US-Japan trade friction. Until 1981, foreign suppliers were precluded from selling to NTT. The Japanese telecommunications market is roughly one-quarter the size of the US market.
