Rethinking phone policy; A.T.& T.'s cellular deal rekindles issues never fully settled in Ma Bell's breakup

Article Abstract:

Government policymakers are not very concerned that AT&T may be rebuilding its national telephone empire through its acquisition of leading cellular telephone service provider McCaw Cellular Communications Inc. Rather, what troubles officials is the issue of when they should begin to allow the regional Bell telephone companies to compete in the long-distance-telephone and cable-television markets. Under the terms of the old AT&T's breakup, the Baby Bells are barred from providing long-distance and cable services. Yet the development of cellular-telephone, wireless-communications and interactive-cable services is rapidly removing their local telecommunications monopoly, and new regulations are forcing them to give alternative carriers access to their local exchanges. Government officials are loath to unshackle the Baby Bells too soon, lest they stifle fledgling competitors, or too late, lest the Baby Bells themselves wither.

Cable and other pay TV services, Internet services, Cable television, Market share, Product development, Regional Bell Operating Companies, Activism, Political protest, Trends, Industry Analysis, Government Regulation, Political Issue, Cable Television/Data Services, Bell Regional Holding Companies

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Phone policy starts to blur; long-distance giants testing smaller waters

Article Abstract:

The proposed agreement for AT and T to acquire 1/3 of McCaw Cellular Communications Inc calls into question the antitrust settlement that dissolved the Bell system and separated long-distance from local telephone service. McCaw is the country's largest cellular telephone company, and an agreement between McCaw and AT and T could bring AT and T back into the local telephone market, or allow the company to avoid using local companies to provide users access to long-distance service. Local companies argue that the agreement will dissolve the separation between local and long-distance service, so they should be allowed to compete in the long-distance market. AT and T argues that their service will be an addition to local services rather than a replacement. The argument involves not only present telephone service but also the future of personal communications, which may become much more widespread than cellular communications.

Antitrust law, Long distance telephone services, Divestiture, Divestment, Long-Distance Telephone Service, Antitrust Issue

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