The Short Goods on Long Distance

By Vowles, Andrew | CMA - the Management Accounting Magazine, February 1995 | Go to article overview

The Short Goods on Long Distance

Vowles, Andrew, CMA - the Management Accounting Magazine


Like many organizations, The Yankee Group would be dead in the water without dependable long-distance telephone service. Iain Grant, managing director of this Brockville, Ont.-based telecommunications research and consulting firm, says his half-dozen long-distance lines are "absolutely critical" in keeping the company plugged in to its customers and colleagues across Canada and around the world. With success or failure riding on those connections, it would take more than the promise of, say, a 5-percent savings in long-distance charges to persuade him to invest in a different carrier. Grant uses the example of his own company to illustrate what he believes is a key question for any organization: Do you view your long-distance phone service as an expense or as an investment?

Changing regulations, new players in the market, and rapid advances in technology have altered the long-distance market within the last few years - and the pace of change will only increase as new rules, competition, and gadgets and gizmos continue to proliferate. That market is worth about $7.5 billion to $8 billion now, including data transmissions over fax machines and moderns; business use makes up about half of the total. Canada's public phone companies across the country - including the nine largest phone companies brindled into the Stentor consortium - still account for about 85-90 per cent of that total. But since Canada's regulatory authority in telecommunications opened the door to long-distance competition in 1992, between 160 and 270 alternative carriers have registered with the Canadian Radio-Television and Telecommunications Commission (CRTC) to offer a range of services - no secret to Canadians who have been bombarded with print and television ads, and door-to-door sales pitches, on the residential side of the market. These companies lease telephone lines and switching equipment in bulk from the Bell networks and then resell chunks of that service to customers at discount rates; several of these companies already operate or plan to install their own lines.

Making a new long-distance market

Besides their lower rates, these alternative carriers have lured customers with a range of new services. In fact, Eamon Hoey, senior partner of Toronto-based telecommunications consultants Hoey Associates, predicts that alternative carriers will account for about one-third of total long-distance revenues by 2005, up from their roughly 10-per-cent share of the market today. Realistically speaking, says Grant, only about 15 of these upstart companies are likely to gain any real toehold in the market - and only about five represent a real threat to the public companies' oligopoly. (Estimates at the upper end vary as widely as they do because registration with the CRTC is no guarantee that a company has actually established services or is even still in business.)

Earlier this year, "equal access" made it easier for customers to use these alternative long-distance carriers. Instead of having to punch in a string of extra digits to put through a call, the user simply dials the number outright, allowing the hardware to take care of the connections.

Competition in long-distance and local services alike is expected to heat up even more in the wake of another regulatory decision reached by the CRTC early this fall. Decision 94-19 will deregulate the Canadian telephone market and usher in sweeping changes in the entire field of telecommunications from phones to home video entertainment. Among its specific measures, are the following:

* reducing long-distance costs and increasing local service costs, or so-called rate rebalancing";

* deregulating the long-distance market;

* throwing open local phone service to competition; and

* allowing phone companies and cable companies onto one another's turf ("convergence"). …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • A full archive of books and articles related to this one
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)


1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

Cited article

The Short Goods on Long Distance


Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Citations are available only to our active members.
    Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25,

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

    Already a member? Log in now.