The USA: A Case Study

Abstract

Given the increasingly significant role played by US operators in Europe, it is important to review recent developments in the US market. Among the 20 largest TOs in the world are to be found the three main long-distance operators, AT&T, MCI and Sprint as well as the seven so-called Baby Bells which were formed as regional companies from the 24 local operators divested from AT&T in 1984 (Ameritech; Bell Atlantic; Bell South; Nynex; Pacific Telesis; Southwestern Bell; and US West. GTE, a purely local operator, is also now a major competitive force). AT&T remains the dominant long-distance operator, serving almost 80 per cent of US households and earning two-thirds of long-distance revenue.