Crossed lines: US Sprint's troubles come amid ferment in long distance field; biggest players gain clout, suggesting that prices could be headed higher; lofty costs and weak billing

Article Abstract:

US Sprint announces that the company lost $42 million in the 2nd qtr, ended Jul 17, 1990. The announcement knocks a third off the stock-market value of Sprint's parent company, United Telecommunications Inc, which itself has experienced a 55 percent drop in profits. Wider implications involve the nation's annual $50 billion long-distance phone charges and telephone industry regulation. Sprint was one of a few challengers able to take a significant share of the market. With Sprint faltering, the question is remains: is there competition? Sprint's troubles come at an inopportune time for AT&T, which wants the FCC to ease regulation. The long-distance market is apparently consolidating into an oligopoly headed by AT&T, with MCI in second place. Industry observers fear that the industry will be dominated by two or three companies, that prices will rise, and that incentive for innovation will diminish.

Finance, United States. Federal Communications Commission, T, Profits, Long distance telephone services, Science and technology policy, Sprint Corp., Long-distance telephone service, American Telephone and Telegraph Co., Market Analysis, Profit, Stock, Losses

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Teleport plans tough assault on Illinois Bell

Article Abstract:

Teleport Communications Group will file a request with the Illinois Commerce Commission to expand into public switched services. If permission is given, it means the end of the monopolization of the local market by the Illinois Bell Telephone Company. Teleport would directly compete with Illinois Bell. According to industry analysts, this could signify the start of a move toward deregulation and, consequently, more competition in local phone service markets. If so, it could ultimately mean lower local phone rates.

Telecommunications industry, Deregulation, Illinois, Regional Bell Operating Companies, Bell Regional Holding Companies, Teleport Communications Group Inc., Illinois. Commerce Commission, SBC Ameritech Illinois

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