Satellite owners move to offset telephony losses to optical fiber

Preparations are made to exploit the advantages of communications satellites for distributing messages among many locations at once. By providing such services, it would be possible to offset losses in telephone market share, which are expected during the last half of the decade because of optical fiber competition. If the ventures in point-to-multipoint communications are successful, satellites can be employed to extend the full range of telecommunications services to many ground stations in suburban, rural, and even remote areas. In connection with current technological developments, it appears that optical fiber or digital microwave will replace satellites later in this decade on many long-haul routes with heavy traffic. An American telephone company plans to construct 21,000 miles of optical fiber facilities connecting U.S. cities and spanning the Atlantic and Pacific by the end of the decade.