THE FINNISH TELECOMMUNICATIONS MARKET - ADVANTAGE OF LOCAL ACCESS INCUMBENCY

The introduction of long distance and local competition in the sophist icated Finnish market in 1994 has resulted in unparalleled growth of t he Finnet group of companies. Finnet is the incumbent in local markets and the entrant in the long distance market. The former long distance monopolist, Telecom Finland, has gained little market share in local markets. Finnet's success was due to its hold on the local access bott leneck, the initial lack of number portability when switching carriers and its right to refuse resale of its access lines to Telecom Finland (both until June 1997), The Finnish case illustrates the importance o f ownership of the local loop, even in the face of numerous independen t local-only operators. (C) 1998 Elsevier Science Ltd. All rights rese rved.