Some questions to consider about telecommunications by chenmeixiu

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									                  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
    information
  – 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
  work?
                  Boundaries
• Type
  –   Jurisdictional
  –   Regulatory category
  –   Service
  –   Technology
• Set by
  – Law
  – Regulator
  – Courts
Boundaries
             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????
                            FCC
    State Commissions
                      Wireline Services

                                  Wireline Services


                          Interstate--FCC             State




                                                         State   State
                                              local
                                                          LD     Access
Interstate and International
                                 Interstate
             LD
                                   Access
             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)
• RBOCs
   –   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

                                                 No
                                                 longer
                                                 Verizon

             Now CenturyLink

Now
AT&T
                           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
    properties)
  – 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
     Lines
   – Local: ―old‖ AT&T Local Operating Companies and the
     Independents
   – State Long Distance: ―old‖ AT&T Local Operating Companies
     and Independents
   – Wireless—not much
• After 1984 (Local companies and Long distance
  companies)
   – 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
  everywhere)
  – 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
      providers/technologies
• Wireless providers
  – Verizon, AT&T, T-Mobile, Sprint (Nextel)
• Internet access
  – Cable modem services—cable television
    companies
  – 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
             plans
• Verizon is shedding rural properties
     • Maine, NH, and Vermont sold to Fairpoint—went
       bankrupt
     • 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 . . . . . .
                  So…..
• What is the role of the regulator?

								
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