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New competitors "redline" the local exchange market by focusing on businesses and ignoring residential customers, charges a new study commissioned by SBC Communications and BellSouth.

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Complaints that competition is failing in the local telephone market are invalid because plenty of rivalry exists for highly profitable business customers, said Peter Huber, a partner in the Washington law firm Kellogg, Huber, Hansen, Todd & Evans, which wrote the report.

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© 2012 Penton Media Inc.

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