III. 1960s - 1984: Deregulation Three areas: –Terminals –Transmission and Long Distance –Computer Inquiries.

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Presentation transcript:

III. 1960s : Deregulation Three areas: –Terminals –Transmission and Long Distance –Computer Inquiries

Terminals: hush a phone (‘56),

Terminals: Carterphone (‘68)

Transmission and Long Distance Above 890 (58) MCI (69) Open skies (72) Resale and Shared Use (76-81) Execunet (77-78)

Computer Inquiries CI 1 (66-71): keep common carriers out of data processing CI 2 (72-80): allow provision of enhanced (vs basic) services through separate subsidiary. CI 3 (86): Open Network Architecture (ONA)

70s Politics : The Bell coalition Cracks Arguments for de-regulation: –regulation failed to guarantee low prices –regulation removed incentives for innovation –Business User pressures

: The AT&T Breakup

The Characters Judge Greene, Bill Baxter, Charles Brown Source: Temin, P. The Fall of the Bell System, Cambridge U.P., 1987

The Modified Final Judgment (MFJ) –COMPETITIVE: Long distance, manufacturing + Bell Labs. They form the new ATT –REGULATED MONOPOLIES: local service. « Baby Bells » RBOCs Companies barred from Long Distance and Manufacturing –ATT free to compete: international and computing