GOP senators expect to introduce plan for Bells to offer long-distance service

Article Abstract:

Under a plan that will be introduced by Senate Republicans, regional Bell telephone companies will be allowed to provide long-distance service by 1998. Other provisions of the proposed legislation include easing the restrictions on the manufacture of telephone equipment, allowing electric utilities to provide fiber optic service, and enabling local telephone operators to provide video services. Under the GOP proposal, Justice Dept oversight over the seven 'Baby Bells,' as established by the 1982 consent decree, is reduced. The GOP proposal stresses cooperation among the Bell companies and potential competitors, and intends to reduce state barriers to local telecommunications competition. AT&T lauded portions of the legislation which facilitate the entry of long-distance companies into the toll-call service market, but expressed concern over the time frames established by the proposed legislation.

Planning, Telephone company, Telephone companies, T, Long distance telephone services, Telecommunication policy, Telecommunications policy, American Telephone and Telegraph Co., Long-distance telephone service, Government Regulation, Telecommunications Service, Market Entry

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Telecom deregulation spawns rival bills; House committees differ on Justice Agency role in Baby Bells' future

Article Abstract:

The House of Representative's plan to deregulate the telecommunications industry has become a battle of two separate camps, with the Commerce and Judiciary Committees pushing different proposals. Republicans on the Commerce Committee are seeking to pass a bill that would lessen restrictions on cable television providers and allow the seven regional Bell operating companies to enter the long-distance marketplace after 18 months without getting a Justice Dept clearance. However, Judiciary Committee Chmn, Henry Hyde, will offer his own proposal, which would make the Baby Bells submit a proposal to the Justice Dept before they produce any telecommunications equipment or market long-distance telephone services to their customers. The Republican leaders from both camps have not met to discuss the legislation, but hearings are planned for mid-May 1995.

Political activity, Telecommunications regulations, Regional Bell Operating Companies, Government communications regulation, United States. Congress. House. Committee on Energy and Commerce, United States. Congress. House. Committee on the Judiciary, Government Activity

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Good connections; despite deregulation, rural phone subsidies are likely to survive; Congress protects the system even though it distorts market in curious ways; tiny firms with big ideas

Article Abstract:

Congress's massive telecommunications bill will attempt to deregulate the heavily regulated telecommunications industry, but a series of complex and obscure subsidies designed to provide universal service for rural areas will continue, despite strong evidence that these subsidies distort the market. Dozens of small telephone companies take advantage of the billions of dollars available for subsidies for rural residents. The subsidies allow these small phone companies to wire sparsely populated areas at tremendous costs and still make huge profits. Opponents of these subsidies claim that they force telephone companies to charge urban dwellers and businesses more for telephone service to subsidies' rural customers. Proponents of the subsidies contend that they are necessary for universal service.

Telecommunications, Forecasts and trends, Industry trend, Market trend/market analysis, Local telephone services, Local telephone service

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