Is this really what Congress had in mind with the Telecom Act?; SBC-Ameritech deal sparks debate over big mergers fostered by deregulation; 'Nobody's got a clear vision.' (Government Activity)

Article Abstract:

SBC Communications's $56.18 million bid to acquire Ameritech is prompting lawmakers and regulators to review the impact of industry consolidation. The Telecommunications Act of 1996 was intended to eliminate decades of regulation that entrenched local telephone monopolies in hopes of fostering competition among telecommunications providers such as the Baby Bells, long-distance carriers and cable operators. A series of mergers have enveloped the industry, frustrating lawmakers and regulators. Customers have not benefitted from the promised less expensive phone rates and improved service. The proposed deal will need at least a year to clear review from state regulators, the Justice Department and the FCC. Rejection would prohibit Baby Bells from entering the long-distance market and other businesses until they allow competition in their local markets. Approval without significant changes would force other telecom companies to merge or face extinction.

Telecommunications, Telephone Communication, Telecommunications regulations, AT&T Inc., SBC, Government communications regulation, AIT, Ameritech Corp.

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The lessons of AT&T's cellular move

Article Abstract:

AT and T purchases McCaw Cellular Communications Co for $12.6 billion, an act that contributes to the dismantling of the redistributive regulatory structure that has existed in state governments for 100 years. State regulators distribute a $14 billion AT and T payment to local telephone companies annually for their call originating and termination services. In all, state regulators collect $34 billion, money that is untaxed and unbudgeted, from local companies and long-distance carriers. AT and T intends to provide radio-based telephones that offer the same features and quality as conventional telephone lines without the cost. The purchase of McCaw brings AT and T closer to that aim, as McCaw currently provides wireless service to 61 million customers in the US.

Electronic computers, Radiotelephone communications, Television broadcasting stations, Telephone communications, exc. radio, Laws, regulations and rules, T, American Telephone and Telegraph Co., State government, AT&T Wireless Services Inc., Cost of Communications, Government Regulation, Radio Communication, Acquisition, MCWA

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