Frost & Sullivan Announces Release of Telecom Sourcebook 1996.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--April 17, 1996--The most recent key development in the telecommunications market was the passage of a broadly applicable telecom bill in February 1996.

In short, this bill will pave the way for establishing a market environment that features fewer restrictions than has ever existed since the break-up of AT&T in 1984.

Concerning this topic, Frost & Sullivan announces the release of its most recent report: TELECOM SOURCEBOOK 1996.

Today, the market is poised for a series of mergers and increased competition, as large telecom organizations are now permitted to enter previously prohibited territories. In brief, the U.S. market segments are forecast to change in the following ways as a result of the passage of this major bill.

For instance, the seven regional bell operating companies (RBOCs) are now permitted to compete in the long-distance business, joining AT&T, Sprint, MCI and a few smaller players in the market. Effectively, this means that businesses and consumers can now benefit by having lower phone rates.

Another existing change with the telcom bill includes the local phone services. Now, traditional long-distance providers will be able to gain some market shares previously held by managed local area networks. However, it is unclear on how firms such as MCI will hook up through existing local providers as rates could become volatile.

Broadcasting is another area to be impacted by this telecom bill, as it now relaxes ownership rules and effects the use of a blocking device on TVs that can be engaged to prohibit viewing of specific programming. Moreover, all cable regulations have now been lifted at the state level with the idea of promoting free market competition. As a direct result, all cable TV rates are certain to rise.

Additionally, phone companies are now allowed to sell TV programming and other video services over standard telephone lines or via satellite connections. Other changes due to the telecom bill include: cross-ownership of cable and telecompanies in one region, restrictions on dissemination of indecent material over the internet, universal service guaranteeing phone service everywhere in the U.S., and the distribution of unused parts of the spectrum still being discussed by lawmakers.

Some of the many highlights covered in the Telecom Sourcebook include: interactive television and other digital formats in the U.S., cost savings with videoconferencing, increased use of fiber optic cable, implementation of intelligent networks, and the utilization of voice processing.

Frost & Sullivan is an international high-technology market research and consulting firm headquartered in Mountain View, Calif. It produces a variety of strategic, worldwide industry and customer research reports. For additional detailed information, an executive summary is available on this report. -0- Report: 2836-68 Publication Date: April 1996

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