Voice Communications

How we got to where we are today.

The Beginnings

Telegraph

First telecommunications system

Digital code
On - Off signal
Western Union Co. developed network

Telephone

Analog signal
Western Union rejected offer to develop it.

Early Industry
Patent monopoly for 17 years
Fully competitive after patent expired

Islands of service
Several companies in one city
Bell companies franchised by AT&Ts
predecessor
No interconnections
No electronics

Turn of Century

Vicious Competition

Still no interconnection between Bell &

Independents
Bell starting to develop long distance (30 miles)
Invention of vacuum tube allows really long
distance
Bells buying up Independents

Government considers regulation

ICC established & starts to regulate Inter-state

communications

Enlightenment

Bell voluntarilyagrees to restrictions

Kingsbury Commitment

Government leaves them alone.

Will interconnect with Independents

Will not buy any more Independents unless ICC
says OK
Get rid of Bells Western Union ownership

Little federal regulation of interstate business

States start to regulate local business

Public Utilities Commissions established

New Deal

Communications Act of 1934

Established FCC

Principle of Universal service

took over regulation of radio, telephone, telegraph

Sets policy, Handles the details
Keep residential prices low so every family has
basic telephone service
Its OK to charge high long distance& business rates
Rate of return regulation

Regulated Monopoly

Provides end to end service under tariff

Rise of Consumerism
1970s

Every one has universal service

95% of households served

Concept of pay only for what you use

Price averaging looses favor

Cream skimming more acceptable

Carterfone decision
Microwave Communications Inc.

low quality, low cost point to point service

Start of the End for the Bell

System
Interconnect industry established
Competitive long distance

MCI
SP Communications

Open skies decision

Department of Justice suit

Charges anti-competitive actions

Asks breakup of Bell System

Divestiture(MFJ)

AT&Ts 22 wholly owned local telephone

companies become 7 RBOCS
Intra-LATA business only (regulated)
No manufacturing
No information services
Equal access for all IECs
Inter-Exchange Cos (IECs)
Competitive Inter-LATA business

Manufacturing

Competitive (Lucent Technologies)

C. P. E. ownership reverts to the customer

Equal Access to Long Distance

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Customer access to all IXCs

Co-location of IXC equipt in Telco office
Creation of the POP
Feature Group Access ( FG A, B, D)
Trunk Side Access FG D
Line Side Access FG A

Feature Group A Access

or
Line Side Access
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PIN required for ANI

ANI Automatic Number ID
FG A 1 - 800 - 7 digits - PIN-AC - #

Feature Group B Access

or
Facilitated Trunk Side Access
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950-10XX
XX IDd the IXC
Calls routed to trunk side for easy ANI
No PIN required
10-XXX
10-10-XXX

Feature Group D
or
1 + Access
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Also called True Equal Access

Requires Intelligent Switches
Database of PICs
Can override using FG B access
Good for Calling Card use at pay phones

Telecommunications Act of 1996

Encourage & enable competition
Covers

Telephone
Radio
Cable
Broadcast TV

Drops all restrictions of MFJ on RBOCS

Must first meet 14 point competitive check list

Local Competition for dial tone services

Must interconnect with any carrier

Telecommunications Act of 1996

Any one can get into any business

Redefines Universal Service

Cable into telephone

Telephone into cable
TV & radio station ownership limits dropped
Power companies can offer telecommunications
services
Includes Internet access to rural areas & city
poor

Unregulates cable, eventually

Telecommunications Act of 1996

FCCs role strengthened, States role
diminished
Directed FCC to:

Define Universal service in detail

Determine when local competition was
sufficient to trigger letting RBOCs into long
distance.
Establish Access charges to assist high cost
rural telephone companies

Telecommunications Act of 1996

Telecommunications Decency Act

Restricted obscenity on Internet

Required TV rating system and blocking chip
in TV sets
Quickly declared unconstitutional (1st
Amendment)

Regulatory reform

Review FCC rules every two years and delete if

competition is in place
Eliminate as many regulations as possible

Since the Telecommunications

Act of 1996

FCC hearings to fill in the details

Universal Service
Access Charges
Local Competition
Many, many others

Court challenges to the FCC rulings

Most being appealed to Supreme Court

No decisions yet on the major, controversial
items

Since the Telecommunications

Act of 1996
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RBOCs combining
NYNEX & BellAtlantic --> New BellAtlantic
New Bell Atlantic is now VERIZON
- SWBell & PacTel --->SBC Corp
SBC & Ameritec agree to merge
BellAtlantic buys GTE

A.T.&T. expands
Bought McCaw cellular, Teleport and MFS
Merged with Cingular

Competitive Local Exchange Companies

Ex: Time Warner, PaeTec, Choice One in ROC

Comedic Take