The U.S. TelecommunicationsIndustry : 1996-1999Case 2-4BT2C
The Telecommunications Act 1996
History Telecommunications has traditionally been a regulated sector of the US economy. Regulation was imposed in the early part of this century and remains until today in various parts of the sector. The main idea behind regulation was that it was necessary because the market for telecommunications services was natural monopoly, and a second competitor would not survive. Regulation was imposed to protect consumers from monopolistic abuses.
The Telecommunications Act of 1996 Enacted by the U.S. Congress on February 1, 1996, and signed into law by President Bill Clinton on February 8, 1996, provided major changes in laws affecting
The Telecommunications Act of 1996
The Telecommunications Act of 1996 The law's main purpose was to stimulate competition in telecommunication services. The law specifies:
The 1996 Act aims to "preserve and advance universal service [254(b)]. This means:
Who are the Regional Bell Operating Companies (RBOCs)? The original 7 RBOCs were formed from the 1984. Originally consisted of 22 Bell Operating Companies (BOCs). The 1984 Divestiture merged the 22 BOCs into 7 RBOCs:
Who are the Regional Bell Operating Companies (RBOCs)?
Who are the Regional Bell Operating Companies (RBOCs)? (1997)
Who are the Regional Bell Operating Companies (RBOCs)? (Plans) SBC Ameritech SBC ($62 billion) + Bell Atlantic GTE Bell Atlantic ($ 53 billion) +
Financial Data For RBOCs 1996 In million dollars Ameritech =14,917 Bell Atlantic= 13,081 Bell South =19,040 GTE = 21,339 Nynex =13,454 Pacific Telesis = 9,588 SBC =13,898 US West = 11,168
Financial Data For RBOCs 1997 In million dollars Ameritech =15,998 Bell Atlantic= 30,368 Bell South =20,633 GTE = 23,260 Nynex* = 0 Pacific Telesis* = 0 SBC = 26,681 US West = 11,479
Financial Data For RBOCs 1998 In million dollars Ameritech =17,514 Bell Atlantic= 31,566 Bell South =23,123 GTE = 25,473 Nynex* = 0 Pacific Telesis* = 0 SBC = 28,777 US West = 12,378
Who are the Long-Distance Carriers?
The largest provider of local, long distance telephone services in the United States, and also serves digital subscriber line Internet access and digital television. AT&T is the second largest provider of wireless service in the United States, with over 81.6 million wireless customers, and more than 150 million total customers
MCI Communications Corp. was an American telecommunications company that was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and ushered in the competitive long distance telephone industry. It was headquartered in Washington, DC. Founded in 1963, it grew to be the second largest long-distance provider in the U.S. It was purchased by WorldCom in 1998 and became MCI WorldCom, and afterwards being shortened to WorldCom in 2000. WorldCom's financial scandals and bankruptcy led that company to change its name in 2003 to MCI. The MCI name disappeared in January 2006 after the company was bought by Verizon.
Sprint Nextel Corporation is a telecommunications company based in Kansas.The company owns and operates the third-largest wireless telecommunications network in United States, with 49.3 million customers. Sprint is a global Internet carrier and makes up a portion of the Internet backbone. In the United States, the company also operates the largest wireless broadband network and is the third-largest long distance provider.
Qwest Communications International, Inc. is a large telecommunications carrier. Qwest provides local service in 14 western U.S. states. Qwest provides voice, backbone data services, and digital television in some areas. It operates in three segments: Wireline Services, Wireless Services, and Other Services. Qwest Communications also provides long-distance services and broadband data, as well as voice and video communications globally.
Financial Data For major long-distance carrier 1996 In million dollars at&t = 52,184 MCI = 18,494 Qwest = 231 Worldcom = 4,485 Sprint = 14,045
Financial Data For major long-distance carrier 1997 In million dollars at&t = 51,319 MCI = 19,653 Qwest = 697 Worldcom = 7,351 Sprint = 14,874
Financial Data For major long-distance carrier 1998 In million dollars at&t = 53,223 MCI* = 0 Qwest = 2,243 Worldcom = 20,282 Sprint = 17,134
Technology and Innovation
Technology and Innovation
Technology and Innovation
DSL DSL or xDSL is a family of technologies that provides digital data transmission over the wires of a local telephone network. DSL originally stood for digital subscriber loop, but as of 2009 the term digital subscriber line has been widely adopted as a more marketing-friendly term for AsymmetricDigital Subscriber line (ADSL), The download speed of consumer DSL services typically ranges from 384 kilobits per second (kbps) to 20 megabits per second (Mbps), depending on DSL technology, line conditions and service-level implementation. Typically, upload speed is lower than download speed for ADSL and equal to download speed for the rarer Symmetric Digital Subscriber line (SDSL),
DSL technology expands
DSL technology expands
Look at just a few ways people can use the Internet to add value to their lives:
Cable modem cable modem is a type of network bridge and modem that provides bi-directional data communication via radio frequency channels on a cable television(CATV) infrastructure. Cable modems are primarily used to deliver broadband Internet access in the form of cable Internet, taking advantage of the high bandwidth of a cable television network. They are commonly deployed in Australia, Europe, and North and South America. In the USA alone there were 22.5 million cable modem users during the first quarter of 2005, up from 17.4 million in the first quarter of 2004
Future of Cable modem In 2007 Comcast Corp shows off for the first time in public new technology that enabled a data download speed of 150 megabits per second, or roughly 25 times faster than today's standard cable modems. The new cable technology is crucial because the industry is competing with a speedy new offering called FiOS, The top speed currently available through FiOS is 50 megabits per second, but the network is already capable of providing 100 Mbps and the fiber lines offer nearly unlimited potential.
Future of Cable modem "If you look at what just happened, 55 million words, 100,000 articles, more than 22,000 pictures, maps and more than 400 video clips,". "The same download on dial-up would have taken two weeks."
Dense Wavelength-division multiplexing In fiber-optic communications, Dense wavelength-division multiplexing (DWDM) is a technology which multiplexes multiple optical carrier signals on a single optical fiber by using different wavelengths (colors) of laser light to carry different signals. This allows for a multiplication in capacity, in addition to enabling bidirectional communications over one strand of fiber. This is a form of frequency division multiplexing (FDM) but is commonly called wavelength division multiplexing.
How to WDM work? WDM systems are popular with telecommunications companies because they allow them to expand the capacity of the network without laying more fiber. By using WDM and optical amplifiers, they can accommodate several generations of technology development in their optical infrastructure without having to overhaul the backbone network. Capacity of a given link can be expanded by simply upgrading the multiplexers and demultiplexers at each end. This is often done by using optical-to-electrical-to-optical (O/E/O) translation at the very edge of the transport network, thus permitting interoperation with existing equipment with optical interfaces.
How to WDM work? Most WDM systems operate on single mode fiber optical cables, which have a core diameter of 9 µm. Certain forms of WDM can also be used in multi-mode fiber cables(also known as premises cables) which have core diameters of 50 or 62.5 µm. Early WDM systems were expensive and complicated to run. However, recent standardization and better understanding of the dynamics of WDM systems have made WDM less expensive to deploy.
Internet Telephony Internet telephony also transmits using data packets. Analog voice signals are digitized, sent in discreet packets to the destination, reassembled and reverted back to analog signals. By using Internet telephony, one can place long-distance calls free of telephone charges. The catch is that both parties must have Internet telephony software. If Internet telephony is used to call a land-line or cell phone, charges apply, though they are usually minimal.
History of Internet Telephony
Broadband Broadband in telecommunications refers to a signaling method that includes or handles a relatively wide range (or band) of frequencies, which may be divided into channels or frequency bins. In data communications an analog modem will transmit a bandwidth of 56 kilobits per seconds (kbit/s) over a telephone line; over the same telephone line a bandwidth of several megabits per second can be handled by ADSL, which is described as broadband
History of Broadband
Infrastructure Bandwidth Requirements
Iridium SSC, Iridium communications service was launched on November 1, 1998. The first Iridium call was made by then-Vice President of the United States Al Gore. Motorola provided the technology and major financial backing.The logo of the company was designed by Landor Associates, and represents the Big Dipper. Iridium Satellite LLC has approximately 320,000 subscribers as of the end of December 2008 (compared to 203,000 in July 2007). Revenue for the fourth quarter of 2008 was US$76.8 million with EBITDA of US$25.0 million.
Technical details Handsets
Teledesic was a company founded in the 1990s to build a commercial broadband satellite constellation for Internet services. Using low-earth orbiting satellites small antennas could be used to provide uplinks of as much as 100 Mbit/second and downlinks of up to 720 Mbit/second. The original 1995 proposal was extremely ambitious, costing over US$9 billion originally planning 840 active satellites with in-orbit spares at an altitude of 700 km. In 1997 the scheme was scaled back to 288 active satellites at 1400 km and was later scaled back further in complexity and number of satellites as the projected market demand continued to decrease.
Teledesic was notable for gaining early funding from Microsoft (investing US$30 million for an 8.5% stake), Craig McCaw, Bill Gates, Paul Allen and Saudi prince Alwaleed bin Talal, and for achieving allocation on the Ka-band frequency spectrum for non-geostationary services. Teledesic's merger with ICO Global Communications led to McCaw's companies taking control of ICO, which has successfully launched one test satellite.
Intersection of Telecom and IT Industries one of the most IT companies moving into the telecom arena is “Microsoft”
Intersection of Telecom and IT Industries Timelines