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 <subject>Cable television</subject>
 <subject>Competition</subject>
 <subject>Rates</subject>
 <subject>Telecommunication industry</subject>
 <subject>Strategic planning</subject>
 <subject>Telephone</subject>
 <subject>Internet service providers</subject>
 <subject>Cost analysis</subject>
 <subject>Broadband services</subject>
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 <title>Telecommunications: Wire-Based Competition Benefited Consumers In Selected Markets</title>
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<abstract>One of the primary purposes of the Telecommunications Act of 1996
was to promote competition in telecommunication markets, but	 
wire-based competition has not developed as fully as expected.	 
However, a new kind of entrant, called broadband service	 
providers (BSP), offers an alternative wire- based option for	 
local telephone, subscription television, and high- speed	 
Internet services to consumers in the markets they have chosen to
enter. This report provides information on (1) BSPs&apos; business	 
strategy, (2) the impact of BSPs&apos; market entry on incumbent	 
companies&apos; behavior and consumer prices for telecommunications	 
services, (3) the key factors that BSPs consider when making	 
decisions about which local markets to enter, and (4) the success
of BSPs in attaining subscribership and any key factors that may 
limit their success. We developed a case-study approach to	 
compare 6 cities where a BSP has been operating for at least 1	 
year with 6 similar cities that do not have such a competitor.	 
The 6 markets with a BSP presently account for more than 20	 
percent of the households nationwide that are in areas where BSPs
currently offer the three-service package, but the results of	 
these case studies are not generalizable to all markets.</abstract>
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<identifier type="preferred citation">GAO-04-241</identifier>
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 <topic>Cable television</topic>
 <topic>Competition</topic>
 <topic>Rates</topic>
 <topic>Telecommunication industry</topic>
 <topic>Strategic planning</topic>
 <topic>Telephone</topic>
 <topic>Internet service providers</topic>
 <topic>Cost analysis</topic>
 <topic>Broadband services</topic>
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