BellSouth's entry into the long-distance market will introduce true competition in a market currently dominated by three companies. Based on projections and results already seen elsewhere, Pociask estimates the new competition may lower long-distance prices between 20 and 32 percent. BellSouth's entry will also stimulate local competition. Lower local and long-distance prices will stimulate demand for both, and customers will enjoy additional savings as usage increases. BellSouth has filed applications for permission to provide long-distance service before state regulatory commissions in Alabama, Kentucky, Louisiana, Mississippi, North Carolina and South Carolina.
Data indicates local competition is growing rapidly.
In fact, the study estimates the local competition is growing 1.7 times faster than the competition for long-distance services grew when that market was first opened to competition.