Some questions to consider about telecommunications by chenmeixiu


									                  ITS 302
• Purposes of the course
  – Review the history of US telecommunications
    as a case study
  – Examine the basics of regulation, especially
    as they apply to telecommunications and
  – Identify the major issues of current concern
   Some questions to consider
• Do we need regulation?
• Does history matter?
• Why didn’t the U.S. Telecom Act of 1996
• Type
  –   Jurisdictional
  –   Regulatory category
  –   Service
  –   Technology
• Set by
  – Law
  – Regulator
  – Courts
             Local service
             State long distance
             Interstate long distance
             International long distance
        Classification of Services

                          All Services

   Common Carrier         Broadcast        Information Services

  Regulated by FCC      Regulated by FCC   Not regulated--yet
and State Commissions
Common Carrier Services

          Common Carrier Services

         Wireline        Wireless

         FCC and                    States????
    State Commissions
                      Wireline Services

                                  Wireline Services

                          Interstate--FCC             State

                                                         State   State
                                                          LD     Access
Interstate and International
             The Players
• Regulators (federal and state)
• Service providers
  – Wireline providers
  – Wireless providers
  – Cable providers
  – VoIP providers
• Customers
  – Residential, small business, large business,
    service providers themselves
 The Incumbent Local Exchange
        Carriers (ILECs)
   –   NYNEX
   –   Bell Atlantic     Bell Atlantic + GTE = Verizon (+MCI)= Verizon
   –   Pacific Telesis
   –   Southwestern Bell           +SNET = SBC +AT&T = AT&T
   –   Ameritech
   –   Bell South
   –   U.S. West = Qwest
• Independents
   –   Alltel (now Windstream)
   –   Sprint United (then Embarq) Embarq+Century = CenturyLink
   –   Century
   –   Chillicothe
   –   +1300 more
Regional Bell Companies


             Now CenturyLink

                           Now AT&T
                                      Now AT&T

       No longer Verizon
                 ILECs in Ohio
• 43 in total
• Largest include:
  – AT&T (4 million lines)
  – Frontier (900,000 lines) (purchase of Verizon)
  – Cincinnati Bell (800,000 lines)
  – CenturyLink (purchase of Sprint’s Embarq and United
  – Windstream (formerly Alltel and Western Reserve)
  – Chillicothe (37,000 lines)
  –   Champaign (12,500 lines)
      And now today also . . .
• VoIP providers
  – Interconnected
  – Nomadic

• Wireless providers
           Who provides what?
• In 1950 (all one monopoly)
   – International and Interstate Long Distance: ―old‖ AT&T Long
   – Local: ―old‖ AT&T Local Operating Companies and the
   – State Long Distance: ―old‖ AT&T Local Operating Companies
     and Independents
   – Wireless—not much
• After 1984 (Local companies and Long distance
   – 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, after a few
     years, the long distance companies
• After 1996 (supposed to be competition
  – 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
      Competition from new
• Wireless providers
  – Verizon, AT&T, T-Mobile, Sprint (Nextel)
• Internet access
  – Cable modem services—cable television
  – DSL—Local telephone companies and
    competitive providers (CLECs)
• VoIP providers
              Lots of mergers
• Mergers:
  – Wireless
     • Cingular and AT&T Wireless
     • Sprint and Nextel
  – Wireline
     • SBC and AT&T and Bell South
     • Verizon and MCI
• More mergers, sales and acquisitions to come
        Industry Consolidation
• Biggest local telephone companies
  – Verizon and AT&T
• Biggest wireless providers
  – Verizon and AT&T
  – And now AT&T wants to buy T-Mobile
• Biggest long distance providers
  – AT&T (owned by former SBC)
  – MCI (owned by Verizon)
    Changes in ILEC Business
• Verizon is shedding rural properties
     • Maine, NH, and Vermont sold to Fairpoint—went
     • Hawaii sold to private equity firm—went bankrupt
     • Former GTE properties in 9 states sold to Frontier
       (including Athens, Ohio)—will it go bankrupt????
• Ramping up wireless
• Shifts from copper to broadband and from circuit
  switching to IP networks
  – AT&T’s U-Verse and Verizon’s FIOS
  So, what do we have today?
• Cross platform competition
• Bundling of services
  – Cable companies
    • Cable TV, Cable Modem, Digital Phone (triple play)
    • And Wireless ???? (quadruple play)
  – Telephone companies
    • Wireline telephone, DSL, Wireless (triple play
    • And IPTV???? (quadruple play)
  – Issues of pricing and service bundling????
             Issues of concern
• Broadband deployment
• Regulatory status of VoIP
• Network neutrality (or can the FCC regulate the
  broadband network)
• Universal service—is it necessary? Who pays for it?
  How much should it cost? What should be included?
• Regulatory parity in cross platform competition
• Viability of competition, and the potential for monopoly
• And more . . . . . .
• What is the role of the regulator?

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