Objective. Estimate market impacts of "1+" dialing parity plus eliminating traditional LATA boundary.
Model. Measure shifts in market dominance between major competitors, by assuming price changes and estimating revenue impacts across range of demand elasticities, to reflect both changed rates and market shares. Also consider changes to revenues collected by U S WEST through carrier access charge (CAC).
Scope. Limited to residential toll calls carried by AT&T and U S WEST. Does not examine commercial toll customers.
Data. Estimate initial residential MTS market shares for each company using data from Federal Communications Commission.1
Proprietary Restrictions. Model relies upon proprietary work provided to Montana Public Service Commission in staff memorandum dated April 23, 1996. Actual market shares cannot be revealed. Analysis is intended simply as an illustration.
Assumptions. Assume all the reported originating intraLATA toll calls (three-minutes each) are residential, carried by U S WEST.