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Evolution of Telecommunications Deregulation: Bell System Breakup

Explore the deregulation of telecommunications in the 1960s to 1980s, including the AT&T breakup and its impact on terminals, transmission, long distance, and computer inquiries. Delve into the Bell System's fall, the Modified Final Judgment, and the birth of competitive and regulated monopolies.

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Evolution of Telecommunications Deregulation: Bell System Breakup

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  1. III. 1960s - 1984: Deregulation • Three areas: • Terminals • Transmission and Long Distance • Computer Inquiries

  2. Terminals: hush a phone (‘56),

  3. Terminals: Carterphone (‘68)

  4. Transmission and Long Distance • Above 890 (58) • MCI (69) • Open skies (72) • Resale and Shared Use (76-81) • Execunet (77-78)

  5. Computer Inquiries • CI 1 (66-71):keep common carriers out of data processing • CI 2 (72-80): allow provision of enhanced (vs basic) services through separate subsidiary. • CI 3 (86): Open Network Architecture (ONA)

  6. 70s Politics : The Bell coalition Cracks Arguments for de-regulation: • regulation failed to guarantee low prices • regulation removed incentives for innovation • Business User pressures

  7. 1981-1984: The AT&T Breakup

  8. The Characters Judge Greene, Bill Baxter, Charles Brown Source: Temin, P. The Fall of the Bell System, Cambridge U.P., 1987

  9. The Modified Final Judgment (MFJ) • COMPETITIVE: Long distance, manufacturing + Bell Labs. They form the new ATT • REGULATED MONOPOLIES: local service. « Baby Bells » RBOCs Companiesbarred from Long Distance and Manufacturing • ATT free to compete: international and computing

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