Existing companies have huge embedded networks, and they want to capitalize on the growing demand for their services. Factors that make entry into this industry difficult include the high cost of establishing a network, the short life span of current technologies, and the market strength of existing companies. Issues that cause special problems in the telecommunications industry center on regulatory restrictions. The FCC, a federal agency, has regulatory powers over the industry. Most states have a regulatory agency, usually in the form of a public utility commission, to oversee the activities of service providers.
Some states offer a friendlier regulatory environment than others.
Overall, there are huge profits to be made in this industry for those companies who can best predict the rapidly changing environment. Strategic Management . Irwin McGraw-Hill, Boston. The RBOCs and Long Distance. Hoover s Online.