Is Telecom Act 'a complete failure'?

Article Abstract:

The Telecommunications Act of 1996 has failed to obtain its objective of unleashing competition in local phone and cable markets and sparking broadcasting innovation. AT and T, Sprint and WorldCom have barely dented the local market and are de-emphasizing their declining long-distance units while local-service upstarts, such as NorthPoint Communications, that offer business phone and speedy Net services, are going bankrupt amid an industry shakeout. Instead of competing with each other, phone and cable companies have merged and defended their provinces. At the same time, local phone prices are up 12.1% while cable bills have soared 32%.

Government regulation

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It's official: AT&T plans 4-way split to revive stock

Article Abstract:

AT and T Corp announced on Oct 25, 2000 that it will split into four units in an effort to revive declining stock that fell almost 50%. To be finalized by 2002, the breakup plan will create new firms out of AT and T's consumer, business, wireless and broadband operations. According to AT and T CEO C. Michael Armstrong, the plan will allow the divisions to compete more effectively and improve the combined stock price by enabling investors to value the rapidly-growing wireless and broadband businesses on their own merits.

AT&T Corp.

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FTC approves $105B merger of AOL, Time Warner

Article Abstract:

America Online Inc, an Internet service provider, has received US Federal Trade Commission's approval for its $105 billion acquisition of Time Warner. The government agency voted 5-0 to approve the merger after the two companies agreed to several concessions such as the opening of their cable system to an Internet service competitor. The merged company, which will be known as AOL Time Warner, will also be required to continue its high-speed Internet service over telephone lines.

Asset sales & divestitures, Acquisitions & mergers, Internet service providers, AOL Time Warner Inc., Time Warner Inc.

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