Some questions to consider

• Do we need regulation?

• Does history matter?

• Why is one-stop shopping important?

• Why didn’t the U.S. Telecom Act of 1996 work?

Boundaries

• Type– Jurisdictional– Regulatory category– Service– Technology

• Set by– Law– Regulator– Courts

Classification of Services

All Services

Common Carrier Broadcast Information Services

Regulated by FCC and State Commissions

Regulated by FCC Not regulated--yet

Common Carrier Services

Common Carrier Services

Wireline Wireless

FCC andState Commissions

FCC States????

Wireline Services

Wireline Services

Interstate--FCC State

localState

LDState

AccessInterstate and International

LD Interstate Access

Boundaries

International long distance

Interstate long distance

State long distance

Local service

The Players

• Regulators

• Service providers– Wireline providers– Wireless providers– Cable providers

• Customers– Residential, small business, large business,

carriers

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– Sprint United– Century– Chillicothe– +1300 more

Regional Bell Companies

Now AT&T

Now AT&T

Now AT&T

Company Access Lines Annual RevAmeritech (SBC) 4,100,000 $2.487 BVerizon 924,000 $517.5 MCBT 838,000 $484 MSprint 650,000 $328 MWestern Res 202,000 $71 MAlltel 147,000 $53 MCenturyTel 83,000 $60 MChillicothe 37,000 $41 MChampaign 12,500 $7.2 MTelephone Service 11,000 $3.5 M

10 largest ILECs in Ohio

Who provides what?

• In 1950 (all one monopoly)– International and Interstate Long Distance: AT&T Long Lines– Local: AT&T Local Operating Companies and Independents– State Long Distance: AT&T Local Operating Companies and

Independents

• 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 some long

distance companies

• After 1996 (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

• 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)

Lots of mergers

• Mergers:– Wireless

• Cingular and AT&T Wireless• Sprint and Nextel

– Wireline• SBC and AT&T and Bell South• Verizon and MCI

Industry Consolidation

• Biggest local telephone companies (172M):– Verizon and AT&T

• Biggest wireless providers (217M)– Verizon and AT&T

• Biggest long distance providers– AT&T (owned by former SBC)– MCI (owned by Verizon)– Sprint (which is also a local telephone company and

one of the biggest wireless providers)

And . . . .

• What about cable??????

• What about content/entertainment?????

Bundling of services

• Cable companies– Cable tv– Digital phone– Wireless????

• Telephone companies– Wireline telephone services– Wireless– IPTV????