1. Telecommunications The Transition to Competition

2. 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

3. 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

4. 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

5. Issues  Universal Service Table 16.2; Charts 19.1, 19.2.  No More Phone Numbers? 109 new area codes added 1999-2012 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