Marketplace differences between domestic and international facilities and services

Abstract

Differences between the basic structures of the domestic and international telecommunications marketplace mean that U.S. policymakers have to seek different ways to increase competition. The most fundamental difference between the two marketplaces, besides their relative size, is that half of the international communications circuit is under the control of a foreign administration. These administrations may not always perceive the same benefits from competition as does the United States. New competitors in the international communications services market face two obstacles: gaining access to foreign markets and gaining access to international facilities. Facilities competition is unlikely to be practical or to offer the public any benefits, while competition between services and service providers offers more hope of producing tangible benefits.