The History and Emergence of Long-Distance Resellers

Article Abstract:

The long distance telephone industry is changing in that AT&T no longer dominates the market solely. WATS lines were the first service that recognized the need for different and specialized communications systems. Open competition began in earnest in 1971. Resellers of such services as WATS lines were the next change in the industry. A reseller purchases line capability in bulk (generally at a lower rate) and resells part of that capacity at rates that insure a profit. Reselling works because resellers do not need to build their own communications line. A number of advantages to the customer result from having resellers. For most resellers, it is a competitive market.

Telecommunications industry, Outlook, Antitrust Laws, Telecommunications Services Industry

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Examining Resellers of Long-Distance Services: How They Work

Article Abstract:

A whole new business began when companies were allowed by the FCC to resell WATS. WATS lines are nothing more than a marketing creation of AT&T. The goal was to put as much traffic on one line as possible. This is exactly what a reseller does, selling time on a WATS line at a bulk, or discount price. For a seller to use AT&T WATS lines, a local access line must also be installed. Using a reseller may only be practical for small and medium size users. Larger companies may find that it is cheaper to buy directly from AT&T. A table provides examples of rates charged the reseller by AT&T. A model of a 'pure reseller' is given in chart form.

Cost of Communications, Communications Service Supplers

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The New Generation of Long Distance Services

Article Abstract:

The four major 'Other Common Carriers' (OCCC) (often called specialized common carriers) are long-distance telephone companies which offer competition to the Bell Operating Companies. These four specialized common carriers, namely ITT US Transmissions Systems, MCI Telecommunications, Western Union and GTE Sprint Communications, are compared. A large table is utilized to graphically compare these companies in terms of prices, services offered and factual data about each company.

Comparison, Comparative Study, Survey, Specialized Common Carriers

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