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There are many changes that occurred in the industrial organization of interexchange telecommunication services in the United States during the 1985-1995 period Lets look at the general idea of Telecommunications It is the two-way exchange of info in the form of voice or data messages between tow users at distinct geographic locations 5 7 The two-way exchange is now a numerous way exchange through the use of computers and the Internet There are four important areas of the telecommunication industry in the United States Technology plays a major role in telecommunications Before technology there was no such thing as telecommunications During the ten year period there are some key advances in telecommunications due to technology With growing technology more companies want a piece of the action There is a significant increase in long distance carriers and an increase in the size of these carriers There is also a large influx in pricing and competition during this period Another key factor in the success of the telecommunication industry is the regulations established for individual carriers and the industry as a whole With the increasing size of the industry and the major technological advances stricter regulations must be present to keep the structure of the industry Lastly there are some differences between local and long distance carriers that must be looked at to fully understand the industry There is also a fifth major aspect that defines Telecommunications that is the American Telephone Telegraph Company ATT and the history behind itTechnology is a key aspect in the growth of telecommunications If one had to point to the single most important reason for the new competition in local telephone markets It is the advance of technology Digitalization has reduced barriers between voice telephone data and media services 9 29 Microprocessors are the principal component of digital switches So as their performance increases and their price falls switching costs fall and scale and scope economies increase 9 13 Scope
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