Nynex trial set to open in capital; charges of violating A.T.&T. breakup pact

Article Abstract:

The US Department of Justice charges Nynex Corp with violating provisions of the 1984 anti-trust consent decree that resulted in the divestiture of AT&T. The Justice Department asserts that Nynex knowingly violated a central component of the agreement by purchasing Telco Research in 1986, and contends that the venture was an illegal information service. Under the 1984 court order, local telephone companies were enjoined from manufacturing equipment, carrying long distance communications and operating information services. The US Court of Appeals in Washington lifted the restrictions against operating information services in late 1991, but the Justice Department continues to pursue the suit and is asking for a court determination of whether or not Nynex can be trusted to comply with the antitrust decree. The trial may have more political than practical implications. Newspaper publishers and other information suppliers are also competing to enter the information services market.

Prepackaged software, Cases, T, Investigations, Antitrust law, United States. Department of Justice, Monopolies, Court Cases, NYNEX Corp., NYN, Antitrust Issue

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F.C.C. moves to expand phone choice

Article Abstract:

The US Federal Communications Commission (FCC), in an attempt to encourage the creation of new information services, approves pricing policies permitting telecommunications users to choose their own services, and eradicates a requirement for the Bell Regional Holding Companies (RBOCs) to create new subsidiaries for peddling new services. Though intended to make telecommunications networks more open and accessible for corporate customers, the FCC's plans are criticized by providers of Prodigy and other existing information services. Those providers believe that the policies are likely to increase prices for service equipment, and that the new ruling helps the RBOCs keep a competitive edge by allowing them to subsidize pricing for services.

Regulation, admin. of utilities, Planning, Laws, regulations and rules, Telecommunications services industry, Telecommunications industry, United States. Federal Communications Commission, Economic policy, Regional Bell Operating Companies, Cost, Outlook, Competition, Pricing Policy, Bell Regional Holding Companies

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