Some questions to consider Do we need regulation? Does history matter? Why is one-stop shopping important? Why didn’t the U.S. Telecom Act of 1996 work?

Boundaries Type –Jurisdictional –Regulatory category –Service –Technology Set by –Law –Regulator –Courts

Classification of Services All Services Common Carrier Broadcast Information Services Regulated by FCC and State Commissions Regulated by FCC Not regulated--yet

Common Carrier Services WirelineWireless FCC and State Commissions FCC States????

Wireline Services Interstate- -FCC State local State LD State Access Interstate and International LD Interstate Access

Boundaries Local service State long distance Interstate long distance International long distance

The Players Regulators Service providers –Wireline providers –Wireless providers –Cable providers Customers –Residential, small business, large business, carriers

The Incumbent Local Exchange Carriers (ILECs) RBOCs –NYNEX –Bell AtlanticBell Atlantic + GTE = Verizon (+MCI)= Verizon –Pacific Telesis –Southwestern Bell +SNET = SBC +AT&T = AT&T –Ameritech –Bell South –U.S. West = Qwest Independents –Alltel –Sprint United –Century –Chillicothe –+1300 more

Regional Bell Companies Now AT&T

10 largest ILECs in Ohio

Who provides what? In 1950 (all one monopoly) –International and Interstate Long Distance: AT&T Long Lines –Local: AT&T Local Operating Companies and Independents –State Long Distance: AT&T Local Operating Companies and Independents After 1984 (Local companies and Long distance companies) –International and Interstate Long Distance: The New AT&T, MCI, Sprint, plus other Long distance companies –Local: RBOCs and Independents –State Long Distance: RBOCs and Independents, and some long distance companies

After 1996 (competition everywhere) –International and Interstate Long Distance: AT&T, MCI, Sprint, other long distance companies, RBOCs –Local: RBOCs, Independents, competitive providers (CLECs) –State Long Distance: RBOCs, Independents, CLECs, AT&T, MCI, Sprint, other long distance companies

Wireless providers –Verizon, AT&T, T-Mobile, Sprint (Nextel) Internet access –Cable modem services—cable television companies –DSL—Local telephone companies and competitive providers (CLECs)

Lots of mergers Mergers: –Wireless Cingular and AT&T Wireless Sprint and Nextel –Wireline SBC and AT&T and Bell South Verizon and MCI

Industry Consolidation Biggest local telephone companies (172M): –Verizon and AT&T Biggest wireless providers (217M) –Verizon and AT&T Biggest long distance providers –AT&T (owned by former SBC) –MCI (owned by Verizon) –Sprint (which is also a local telephone company and one of the biggest wireless providers)

And.... What about cable?????? What about content/entertainment?????

Bundling of services Cable companies –Cable tv –Digital phone –Wireless???? Telephone companies –Wireline telephone services –Wireless –IPTV????