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Federal Communications Commission
445 12th Street, S.W.
Washington, D.C. 20554
News media information 202 / 418-0500
Fax-On-Demand 202 / 418-2830
TTY: 202/418-2555

This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

August 31, 1999


The FCC has released a report titled Local Competition: August 1999. The report is the first update to the Local Competition report released by the Industry Analysis Division in December 1998. As did the initial report, the new report presents and updates available statistical material, data from Common Carrier Bureau surveys, and information mined from other public sources. It also discusses preliminary statistical analyses of the effects of demographic and regulatory factors on the pattern of competitive entry into local telephone markets.

New data contained in the report indicate that local competition is becoming more geographically widespread. By the end of 1998, competitive local exchange carriers (CLECs) had acquired the numbering resources necessary to provide services over their own facilities in all states. As of the end of June, there remained only 18 of the nation's 193 local access and transport areas (LATAs) where CLECs had not yet obtained such resources. Also, CLEC use of incumbent local exchange company (ILEC) services and facilities continues to increase. At year- end 1998, the largest ILECs as a group provided about 2% of their lines to CLECs on a resale basis (up from about 1% a year earlier). The number of ILEC unbundled local loops leased to CLECs almost tripled between 1997 and 1998, to a still-small 0.2% of total ILEC lines. CLECs were, however, reported to be collocated in switching centers serving almost half of major ILEC total customers.

The new data do not substantially change the broad conclusions set out in the initial report. Local competitors continue growing at a rapid pace. Starting from a small base, however, their presence remains less than 5% of the local market.

The report is available for reference in the FCC's Reference Center at 445 12th Street, S.W., Courtyard Level. Copies may be purchased by calling International Transcription Services, Inc. (ITS) at (202) 857-3800. The report can be downloaded [file name LCOMP99-1.PDF or LCOMP99-1.ZIP] from the FCC-State Link internet site at on the World Wide Web.

For additional information, contact the Industry Analysis Division, Common Carrier Bureau, at (202) 418-0940, or for users of TTY equipment, call (202) 418-0484.