External executive summary for Verizon communications

The importance of the telecom industry can be judged easily by the tremendous revenue that it generates. The threat of entry in this sector was high prior to the mid-nineties. It was so due to several factors. Firstly, it was a highly capital intensive industry. It was after the Deregulation and the telecom act of 1996 that significant barriers to entry could be reduced. Apart from that the technological developments have also reduced the barriers significantly. With the arrival of internet telephony several new firms entered the market. The supplier power in this sector continues to remain low because of excess capacity and low demand. However, there has been slight surge in recent years in demand due to the installation of fibre...