Communication & Information
Technology
Telecommunications Policy
The
Answers
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The Communications ACT of 1934 provided
people with UNIVERSAL phone service.
What does FCC stand for? Federal
COMMUNICATIONS COMMISSION.
The CARTERFONE decision allowed other
manufacturers communication DEVICES to be
connected to AT&T equipment.
On January 8, 1982 AT&T agreed to an out-ofcourt settlement with the US Justice
department to DIVEST.
“BOC” stands for Bell OPERATING
COMPANY.
Preview
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Telecommunications Act of 1934
Change in Telecommunications Regulations
Telecommunications Act of 1996
Future Change in Telecommunications
Regulations
Radio & TV Regulation
Cable Regulation
Trends in Telecommunication Policy
Telecommunications Act of 1934
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Regulated Monopoly
Universal Service
Interstate
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Intrastate
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FCC
PUC
Separations and Settlements
Rate of Return
Telecommunications Act of 1934
“Regulated Monopoly”
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More than one company
in telecommunications
not permitted.
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AT&T
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Not Everyone Had
Phone Service…
Telecommunications Act of 1934
“Universal Service”
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“Service to all…”
Major theme of the Communications Act of
1934.
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Was the goal of Universal Service realized?
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Telecommunications Act of 1934
“Interstate Communications”
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Definition:
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Communications services that take place between
states.
Regulated by…
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FCC (Federal Communications Commission)
Telecommunications Act of 1934
“Intrastate Communications”
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Definition:
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Communication services that take place within a
state.
Regulated by…
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PUC’s (Public Utility Commissions)
Telecommunications Act of 1934
“Separation and Settlements”
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Definition:
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A joint federal/state board where PUC and FCC
representatives meet to discuss local and long
distance interconnect issues.
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The board also regulates the process by which long
distance companies pay local phone companies for
the right to connect into their local loops.
Telecommunications Act of 1934
“Rate of Return”
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Definition:
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“Method by which the FCC could determine how
much profit was reasonable for a
telecommunications service provider to earn.
Change in Telecommunications
Regulations
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After World War II
1956
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AT&T prevented from any business except
regulated telecommunications.
1960’s
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Carterphone
MCI
Change in Telecommunications
Regulations
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1974 (Justice Department Suit)
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The suit asked AT&T to divest itself of Western
Electric & Local Operating Companies.
Change in Telecommunications
Regulations
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1980 (FCC Computer Inquiry II)
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FCC decision about the markets AT&T could enter.
AT&T could enter any market.
Deregulated all competitive services of AT&T.
Competition would drive rates for services.
Change in Telecommunications
Regulations
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January 8, 1982 (AT&T Vs. The Justice
Department Out-Of-Court Settlement)
“Modified Final Judgment”
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Broke off the 22 Bell Operating Companies
(BOC’s).
Turned control of the Yellow Pages to the BOC’s.
Kept:
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Long Lines Division
Western Electric
Bell Labs
Equal Access required of the BOC’s
Change in Telecommunications
Regulations
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Seven Regional Operating Companies (ROC’s)
Formed from the 22 Bell Operating Companies
(BOC’s).
Names (ROC’s)?
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NYNEX
Bell Atlantic
Bell South
Ameritech
Southwestern Bell
US West
Pacific Telesis
Just After the “Break-up”
Change in Telecommunications
Regulations
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Local Access Transport Areas (LATA)
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“A set of geographic boundaries within each state
that defines what will be considered local and long
distance service.”
Extra on LATA’s (Not in Text…)
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LATA are generally handled by one Telco, not every
call within every LATA is considered a local call.
Rural, and very large LATAs often have multiple
calling areas.
Telecommunications Act of 1996
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The Aim of the Act is…
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“…to promote competition in every telecommunications
market.”
Previous mindset…
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“…protection of the incumbent utility from entrants.”
“…protection of consumers from monopoly power.”
Telecommunications Act of 1996
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The Act's provisions fall into five major areas:
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Telephone Service
Telecommunications Equipment Manufacturing
Cable Television
Radio and Television Broadcasting
The Internet and Online Computer Services
Telecommunications Act of 1996
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Telecommunications Act of 1996 Provision
Specifics include:
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Remove legal and regulatory barriers to entry.
BOC’s can provide Long Distance.
BOC’s can own and manage companies that
provide equipment.
Infrastructure sharing.
Allows the FCC to control licenses for advanced
television systems.
Deregulates cable rates.
Telecommunications Act of 1996
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Projected Benefits of of Telecommunications Act
of 1996
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Lower phone and data rates.
New competitors offering innovative services.
Rapid implementation of new technologies such as
high-speed Internet access.
Generally, better services for consumers
Telecommunications Act of 1996
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How effective has the Act been?
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"Communications Decency Act of 1996“
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Rough Going…
Long Distance Telephone
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Varied
Pretty Good..
Local Telephone Service
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Slow to Develop…
Future Change in
Telecommunications Regulations
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Remember the “Seven Regional Operating
Companies?
The Seven ROC’s are now…
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Ameritech + Southwestern Bell + Pacific Telesis =
SBC Corporation.
Bell Atlantic + Nynex = Bell Atlantic.
Bell South
US West
Bell
Atlantic
Southwestern
Bell
Corporation
1)
2)
3)
4)
US West Inc.
BellSouth
Bell Atlantic
Southwest Bell
Radio & TV Regulation
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Radio Act of 1912
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Allowed Secretary of Commerce to license radio stations
In 1922, 830 kHz was set aside for important news, etc.
Radio Act of 1927
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Created the Federal Radio Commission
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Assign Bandwidth
Control Station Power
Issue Licenses
Radio & TV Regulation
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Communications Act of 1934
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FCC now controls radio
Forbids the FCC from censoring programs.
Cable Regulation
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Cable Communication Policy Act of 1984
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(1992) Cable Television Consumer Protection &
Competition Act.
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Incorporated the cable television industry into the C.A of
1934
Must Carry…(Courts struck down)
“Must Carry” reinstated…
Greater Control of Pricing…
Communications Act of 1996 (De-regulated again…)
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March 30, 1999 (FCC Stepped aside from Cable Rate
disputes...)
Trends in Telecommunication
Policy
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Diminishing Federal Role
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Emerging State Role
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Congress leans toward deregulation
Courts have played a big role. (Judge Harold Greene)
Deregulation to drive growth
National Information Infrastructure
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Computers, networks and databases accessible to all people
in the USA
Standardization
“New Super Information Highway”
Internet2
Trends in Telecommunication
Policy
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Repricing Services
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Recovering costs directly from the service that
generates the cost.
CALC (Customer Access Line Charge)
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Local Measured Service
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Pay for the connection
Similar to Long Distance Billing
Integration & Mergers
Trends in Telecommunication
Policy
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Regulating Intellectual Property
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Copyright issues.
Enforcement problems.
Congress & Courts will have to play a role.