LIVINGSTON, NJ.--July 11, 1995--(BUSINESS WIRE)-- Telecommunications reform legislation now before Congress will create a demand-driven phone industry and increase the uncertainty for the future of the phone companies, says a new report from Insight Research. With legislators and telephone companies abandoning concepts like natural monopoly and social contract in favor of a competitive marketplace, the phone industry is shifting from a hegemonic mentality to one that creates and then meets consumer demand. The key factor accelerating this trend is the freedom to competePPbut this also means having the freedom to fail. The report warns that financially weak phone companies will be acquired by stronger firms, sometimes from outside the traditional telephone industry.
According to "The Future of the Phone Companies: Technology and Telecommunications in the Year 2000 and Beyond," as telephone companies provide a wider range of services and move into providing or modifying the content of the delivered services, they increasingly will rely on a range of partnerships and joint venture alliances. Insight predicts that by the year 2000, convergence of digital electronics, communications, and consumer markets will provide consumers with PCs that can supply family entertainment, video, and digital interactive services that make obsolete current distinctions between telephone and cable TV services.
"Mother Bell mentality was never one to listen to the wants and needs of the consumer," explains Insight's president Robert Rosenberg.
"But now, with changing dimensions of communications services, mobility, bandwidth, and interactivity, the phone companies have to meet consumer demand or else lose out to another company who will," Rosenberg added.
Insight predicts the greatest growth for the local telephone companies will be in cable TV, interactive TV, and wireless service revenues, which the report projects as hitting $58 billion by 1996. Revenues in the year 2000 for these services will be well over $1 trillion, according to the study.
"The Future of the Phone Companies: Technology and Telecommunications in the Year 2000 and Beyond" is now available from Insight Research for $2,995. Insight Research, based in Livingston, NJ, is a leading provider of comparative research and competitive analysis for the telecommunications industry. For more information on this study, please contact:
Tara D. Mahon The Insight Research Corporation 354 Eisenhower Parkway Livingston, N.J. 07039-1023
Internet: tara@insight-corp.com phone: (201) 605-1400 fax: (201) 605-1440
CONTACT: Tara D. Mahon, Director of Marketing
(201) 605-1400
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