Two wireless carriers offer voice and high-speed data services to businesses using high frequency microwave radios. In the wireline video market, the incumbent provider, TCI, controls the market. A new company, RCN, has announced plans to enter the market to provide wireline video services, as well as voice and data, to residential customers in San Francisco. TCI faces some competition from direct broadcast satellite providers, like DirecTV, but so far the penetration of satellite services has been small. The main body of the report is divided into eight sections, each of which is briefly summarized below.
Video represents the only service of the three where some choice is available.
Direct broadcast satellite service from companies like DirecTV offers a relatively competitive offering compared to the incumbent cable television operator, particularly in areas of the City where the local television stations can be received clearly with an antenna. Voice and high-speed data may become competitive services in the future if TCI rebuilds its network and if RCN enters the San Francisco market. San Francisco has one of the most competitive markets for advanced telecom services. In addition to Pacific Bell, there are at least eight wireline facilities-based carriers operating in this market. All of these will serve the large and medium sized users.