Telecommunications The Transition to Competition.

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Presentation transcript:

Telecommunications The Transition to Competition

Milestones  1963 – MCI first attempts to offer long distance service to the public  1983 – AT&T Divestiture Creates 7 “RBOCs” for local service FCC creates “access charges,” equal access (1+) for long distance competitors Incentives for “by-pass” of local companies  1989 – FCC adopts Price Cap for AT&T  1990s – States begin to adopt Price Caps for local telephone companies  1993 – FCC first auctions wireless frequencies  1996 – Telecommunications Act Allows entry in local telephone service

Mergers  1997 SBC/Pac Tel Bell Atlantic/NYNEX  1998 MCI/Worldcom SBC/SNET  1999 SBC/Ameritech  2000 Qwest/US West Bell Atlantic/GTE (now Verizon)  2005 SBC/AT&T Verizon/MCI  2006 AT&T/BellSouth  Abandoned 2012 AT&T/T-mobile

Issues  Growth and Change Charts 3.2, 15.1, 11.1, 2.2 vs. 6 in BB  Market Structure Local (Table 7.4, Charts 7.2, 8.1, 8.4) Long Distance (Charts 9.1, 9.2)  Prices Charts 12.1, 12.3  Progressivity Charts 17.2, 17.1

Issues  Universal Service Table 16.2; Charts 19.1,  No More Phone Numbers? 109 new area codes added TRA announces 629 area code “overlay” in October 2013 No growth in local loops since 1999 (about 190 million) Wireless subscribers tripled since 1998 to over 270 million