Abstract
Examines recent trends in local exchange competition in the US telecommunications industry. Shows that the predominant modes of operation by competitive local exchange carriers (CLECs) have been changing over time. These operating modes also vary substantially in different regions of the country. Provides a preliminary exploration of the role of potential profit in explaining the extent of overall CLEC activity. Also considers the role of prices in explaining variation in CLEC operating mode, and discuss possible additional determinants of CLEC activity that merit further investigation.
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