Industry Overview AT&T and the Bell System Post Divestiture Factors in the Emergence of Competition to the Bells The Vision of the Telecommunications Act of 96 Key Industry segments Factors leading up to the current competitive landscape The criticality of regulations

Figure 3.1 Interconnection for local access. Pre-Divestiture AT&T Connection to their Local Network

Independent Telephone Companies Never part of AT&T Large territories long cable loops Few customers Lines of business Dependence on rural subsidies and access fees

Figure 3.2 Regional Bell Operating Company territories. RBOC Territories

Bypassing telephone Companies’ Access Fees Using Competitive Access Providers (CAPs) How did the industry change after Divestiture?

The Telecommunications Act of 1996 The Desire for Uniform Regulations Perceived Benefits of Competition Lifting Restrictions: –Bells, Cable Companies and Utilities Technological Factors –Wireless –Switches –Fiber

Provisions of the Act Interconnection to Regional Bell Operating Company networks Fees for Bells to Carry Competitors’ Traffic The Significance of Local Number Portability Lifting restrictions on manufacturing and interstate service by RBOCs

Figure 3.4 A local loop leased by a CLEC. Post-Telecommunications Co-location

Intermodal Competition - The Triple Play Wireless Carriers Cable TV Providers CLECs ILECs Utilities

Types of Competitors Facilities based Carriers Resellers –Wireline –Wireless Agents –How do agents and resellers differ? –Selling, billing, customer service & truck rolls

When Regulations Matter The FCC’s Impact Issues at the State level The Decline of CLECs Cable Modems & DSL - Information Services Vs. Telecommunications Services Blocking VoIP Traffic?

Summary Who is left standing? Choices for Business Vs. Residential Customers Differences in the 1980s, 1990s and 2005 The impact of Wireless on the Bells