Small and medium size businesses located outside the competition center may benefit from recent developments in wireless delivery systems. However, these businesses do not have choices of wireline telecommunications services. Competition to serve the voice and data needs of larger businesses will continue to grow where the new carriers can access the customers using their own networks, or where they can reach the customers using a combination of their networks and Pacific Bell's local facilities. Competition for small businesses will be slower to develop and competition in the residential market may not develop in a meaningful way at all over the next three years. Wireless carriers will compete to serve large business customers as well, although the area of competition may well extend beyond the physical reach of the wireline competitive carriers.
Wireless data is an emerging competitive force.
Delivery technologies are continually changing and developing. Because of its ability to reach beyond the physical limits of wireline networks, wireless will increase the overall size of the data telecommunications market. It will also take some market share from existing wireline carriers because of its speed of installation and lower cost per installation. However, MCG does not believe wireless service poses a threat to wireline dominance in prime market locations where demand is concentrated and reachable by in-ground fiber routes. Once installed, network economics favor wireline carriers in high capacity applications.