Abstract
The failure of a telecommunications central office in Hinsdale, Illinois, in May 1988 caused widespread service outages and brought the local economy to a virtual halt. In the process it highlighted the emerging market for back-up networks. At present local exchange carriers are obliged to offer a free stand-by service to customers who choose an alternative network for regular use. This conceals the true market value of this ‘insurance’ service, and should be ended. The author argues that local exchange carriers should vigorously enter the market for ‘faultless’ networks by offering a range of back-up options for their own primary service, just as the automotive and consumer products industries do.
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