The US 1996 Telecommunications Act, which was meant to increase competition and value for consumers in telecoms services, has backfired, and instead of delivering more competitive pricing and better quality telecommunications, has instead fueled a series of high value mergers, according to the Consumer Federation of America. Instead of creating more competitors in the market as the 1996 act was supposed to, the perceived view that you have to be big to be an effective player in the telecommunications market, is leading to companies acquiring instead of competing, according to Utility Reform Network, a US consumer group. The trend is set to continue, with mergers by AT&T Corp, GTE Corp, and British Telecommunications Plc currently rumored, and further tie-ups between US long distance and local operators a certainty.
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