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Ultimately there will be increased competition in the local exchange and the long distance industry.
The MCI chairman said there is general agreement that real competition can develop in the local exchange but warned it will not happen until several problems are eliminated that impede local exchange competitors.
Competitive Local Exchange Carrier Strategies focuses on CLEC activities in both residential and business service sectors.
Fitch also believes that some level of reform - whether all-inclusive or solely addressing VoIP - will ultimately result in a reduction of access revenues for local exchange carriers.
Today, FairPoint owns and operates 26 rural local exchange carrier companies located in 17 states serving more than 267,000 access line equivalents.
At the current time, Fitch believes the competitive threats faced by Madison River are moderate compared to urban-based local exchange carriers.
VoIP is a powerful and cost-effective technology for competitors to lure customers from the local exchange carriers,' said Michael L.
NuVox offers local exchange and long-distance voice and data, broadband internet access and related services to 20,000 small and medium-sized business customers across 30 cities in 13 states across the Southeast and Midwest through use of its own facilities (customer premises-based integrated access devices, 200 collocations and advanced voice and data switches), combined with unbundled network elements leased from incumbent local exchange companies.
CopperCom, the company that is Liberating the Local Exchange, offers an innovative suite of telecommunications solutions for the local exchange.
PeterStar has entered into several share purchase agreements which in the aggregate will allow it to acquire 80% of the shares of PGTS and 90% of the shares of Pskovinterkom, a smaller local exchange carrier in Pskov and a sister company of PGTS.
Fitch believes that over the next few years CenturyTel is likely to pursue additional acquisitions of rural local exchange properties.

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