Shaping American Telecommunications: A History of Technology, Policy, and Economics

by Sterling; Christopher H.

• ISBN13: 9780805822373
• ISBN10: 0805822372
• Format: Nonspecific Binding
• Copyright: 2005-11-30
• Publisher: Routledge

Summary

Shaping American Telecommunicationsexamines the technical, regulatory, and economic forces that have shaped the development of American telecommunications services. This volume is both an introduction to the basic technical, economic, and regulatory principles underlying telecommunications, and a detailed account of major events that have marked development of the sector in the United States. Beginning with the introduction of the telegraph and continuing through to current developments in wireless and online services, authors Christopher H. Sterling, Phyllis W. Bernt, and Martin B. H. Weiss explain each stage of telecommunications development, examining the interplay among technical innovation, policy decisions, and regulatory developments. Offering an integrated treatment of the interplay among technology, policy, and economics as key factors defining the development of the telecommunications sector in the United States, this volume also provides: *background material to facilitate understanding of each sector; *contexts for many so-called "new" issues, problems, and trends, demonstrating origins from years or decades in the past; and *careful annotation, documentation, and reference tables to enable further research on the topics discussed. This unique multidisciplinary approach provides a balanced view of U.S. telecommunications history, in context with relevant economic, legal, social, and technical analyses. As such, it is essential reading for advanced students in telecommunications needing to understand how the telecommunications industry and service developed to its current form. The volume will also serve as a supplemental text in courses on telecommunications regulation, and it will be of value to professionals in the field seeking context and background for their daily work.

Table of Contents

Preface	xv
About the Authors	xvii
Introducing Telecommunications	1	(35)
Technology---The Means	2	(10)
Basics	2	(2)
Telephone Systems	4	(2)
Local Loop	6	(1)
Digital Transmission Systems	7	(1)
High-Capacity Channels	8	(2)
Data Networks	10	(2)
Economics---Paying for It	12	(8)
Supply and Demand	12	(1)
Market Structure	13	(5)
Cost-Benefit Analysis	18	(2)
Policy---Building Boundaries	20	(16)
Communication Common Carriers	21	(1)
Public Utility Concept	22	(1)
Legal Bases of Regulation	23	(3)
Constitutional Bases of Regulation	26	(1)
Regulatory Theories	27	(3)
Regulatory Structure	30	(2)
Jurisdictional Issues	32	(4)
Telegraph to Telephone (to 1893)	36	(28)
Technology---Limits and Opportunities	37	(1)
Electrical Industry	37	(1)
Role of Patents	38	(1)
Telegraphy---Creating New Patterns (to 1860)	38	(5)
Morse	38	(2)
Extending the Telegraph	40	(1)
Railway Synergy	41	(1)
Western Union	42	(1)
Building a Telegraph Industry (1860--76)	43	(7)
Supportive Role of Government	44	(1)
Monopoly	45	(2)
Network Economics	47	(1)
Impact of Instant Communication	48	(1)
Submarine Telegraphy---Going International	49	(1)
Telephony---Adding Voices (1876--85)	50	(6)
Bell's Device---``Nothing Much New''	50	(1)
Search for Support	51	(2)
Building a Telephone System	53	(2)
Patent Fight	55	(1)
Developing the Telephone Industry (1885--93)	56	(8)
Fractious Local Exchanges	56	(1)
Western Electric	57	(1)
Developing AT&T	58	(6)
Era of Competition (1893--1921)	64	(22)
Improving Technologies	65	(5)
Switching---Connecting Everyone	65	(1)
Automatic Switching	66	(1)
Long Distance Transmission	67	(1)
Wireless Telegraphy and Telephony	68	(2)
Patent Pool	70	(1)
Competition Appears	70	(7)
Rise of the ``Independents''	71	(1)
Vail and AT&T Centralization	72	(2)
Bell's Response to Competition	74	(3)
Twisting Path of Government Regulation	77	(9)
Interconnection	78	(1)
Mann-Elkins Act	78	(1)
1913 Antitrust Suit	79	(1)
Kingsbury Commitment	80	(1)
Wartime Government Control	81	(1)
Willis--Graham Act	82	(4)
Regulated Monopoly (1921--56)	86	(32)
Further Technological Advance	86	(7)
Transmission---Multiplex	86	(1)
Transmissions---Microwave	87	(2)
Switching	89	(1)
Radio Broadcasting	90	(1)
Transistors	91	(2)
Economics	93	(11)
Concepts of ``Natural Monopoly''	93	(2)
Rate-of-Return Regulation	95	(4)
Separations	99	(5)
Regulation---Setting a Pattern	104	(4)
Radio Act	104	(1)
Splawn Report	104	(1)
Communications Act	105	(1)
FCC Telephone Investigation	106	(1)
Walker Report	107	(1)
Antitrust: The 1949 Suit	108	(10)
1949 Complaint	109	(1)
Derailing the Suit	110	(2)
1956 Final Judgment	112	(1)
Aftermath	113	(5)
Competition Reappears (1956--74)	118	(27)
Technology---Adding Competitive Options	118	(6)
Solid-State Electronics	119	(1)
Computer Revolution	120	(1)
Communication Satellites	121	(2)
Coaxial Cable	123	(1)
Terminal Equipment Competition	124	(3)
Hush-a-Phone	124	(1)
Carterfone	125	(1)
Bell System PCAs	126	(1)
FCC Certification	126	(1)
Opening Up Transmission	127	(4)
Above 890 Decision	127	(2)
TELPAK	129	(1)
Seven-Way Cost Study	130	(1)
Creating Specialized Carriers	131	(5)
Formation of MCI	131	(2)
Approving MCI	133	(1)
Interconnection Negotiations	133	(1)
More Applicants	134	(1)
SCC Decision	134	(1)
Domsats	135	(1)
AT&T Responds to Competition	136	(9)
Changing Image	137	(1)
NARUC Speech	137	(1)
Defeating Datran	138	(1)
FX Service Decision	139	(1)
Going Public	140	(5)
Breaking Up Bell (1974--84)	145	(33)
Filing Suits	147	(4)
MCI Brings Suit	147	(2)
Justice Files Its Case	149	(1)
AT&T Responds	150	(1)
A Defining Interlude---Execunet	151	(3)
A New Service	152	(1)
FCC Versus the Court	153	(1)
ENFIA	153	(1)
Trial and Settlement	154	(4)
Paper Chase	154	(1)
Attempts to Settle	155	(1)
Trial	156	(1)
Settlement	157	(1)
Breakup: Defining the MFJ	158	(6)
Agreement	158	(1)
Defining ``Local''	159	(1)
Reorganization	160	(2)
Line of Business Restrictions	162	(2)
Baby Bells	164	(4)
Concept---Limited Regional Power	164	(3)
People	167	(1)
Changing Economics	168	(10)
Rising Costs	168	(2)
Bypass Fear	170	(8)
Operating Under the MFJ (1984-96)	178	(50)
``Free the RBOC Seven''	178	(7)
Petitions for Change	179	(3)
Triennial Review	182	(2)
Decision	184	(1)
Long Distance Marketplace	185	(4)
AT&T Trivestiture	186	(1)
Lucent	187	(1)
Bell Labs	188	(1)
Long Distance Competition	188	(1)
Changing Economic Policies	189	(15)
Equal Access	190	(3)
Access Charges and NECA	193	(1)
Switched and Special Access	194	(3)
Impact on Universal Service	197	(2)
Accommodating Competition	199	(2)
Implementing Price Caps	201	(3)
To Regulate or Not to Regulate	204	(8)
FCC Computer Inquiries	204	(4)
Computer Inquiry III and ONA	208	(2)
Jurisdiction---Congress, the Courts, or the FCC?	210	(2)
Exporting Deregulation	212	(16)
Privatization and Liberalization	212	(2)
Market Flexibility	214	(3)
Opening Markets	217	(1)
Global Investments, Mergers, and Joint Ventures	218	(1)
Trade Issues and the WTO	219	(9)
Innovating New Services (1980s/1990s)	228	(30)
Digital Age	228	(3)
Basics	228	(1)
Switches	229	(2)
Wireless Telephony	231	(3)
Emerging Role of Wireless	231	(1)
Cellular Systems	232	(1)
Changing Cellular Standards	233	(1)
Managing Spectrum	234	(6)
Implementing Lotteries	235	(1)
Auctioning Spectrum	236	(1)
Auction Troubles	237	(1)
Spectrum Task Force	238	(1)
Finding 3G Spectrum	239	(1)
Cable Convergence	240	(6)
Rise of Cable Television	241	(1)
Cable/Telephone Ownership	241	(2)
First Merger Moves	243	(1)
Broadband Gambles	244	(2)
Internet and Information	246	(12)
Early Information Services	246	(2)
Arpanet	248	(1)
Commercialization	249	(1)
DSL Versus Cable Modems	249	(4)
Voice Over IP	253	(5)
1996 Act and Aftermath (1996--2000)	258	(55)
Why Change Took So Long	259	(4)
Earlier Attempts	260	(1)
1986 Dole Bill	260	(1)
Industry Complexity	261	(1)
Political Factors	262	(1)
Legislating Competition and Convergence	263	(5)
(Re)Introducing Local Competition	264	(2)
The ``War of All Against All''	266	(1)
Convergence?	267	(1)
Streamlining Government	268	(2)
Easing FCC Rules and Regulations	268	(1)
Redefining State and Local Roles	269	(1)
Redefining Universal Service	270	(9)
Creating a National Policy	271	(2)
. . . and Paying for It	273	(5)
From Universal Service to Universal Access?	278	(1)
The FCC Implements New Regulations	279	(9)
Interconnection	279	(3)
Pricing Guidelines	282	(2)
Triennial Review	284	(2)
Section 271 Proceedings	286	(2)
Merger Fever	288	(6)
RBOC Mergers	289	(2)
Bellcore	291	(1)
Rise of WorldCom	292	(2)
Appeals, Delay, Decisions, and Impact	294	(19)
Appeals	294	(2)
The Courts Rule	296	(3)
Winners and Losers	299	(2)
Prospects	301	(12)
Meltdown . . . and the Future (Since 2000)	313	(85)
Overcapacity	314	(6)
Fiber Links	314	(2)
Wireless Networks	316	(2)
Broadband Services	318	(1)
Poor Predictions	319	(1)
Economic Pressure	320	(8)
Investment: Frenzy to Freeze	320	(2)
Stock Price Declines	322	(1)
Layoffs	323	(2)
Fraud	325	(2)
Bankruptcy	327	(1)
Waves of Disaster	328	(10)
First: Dot.coms	329	(1)
Second: Manufacturers	330	(1)
Third: CLECs	331	(3)
Fourth: Interexchange Carriers	334	(1)
Fifth: Wireless Providers	335	(2)
Smaller Waves?	337	(1)
Policy Confusion	338	(7)
``Promise'' of the 1996 Act	339	(1)
Tauzin--Dingell Debate	339	(1)
FCC Deregulatory Mantra	340	(2)
Auction Debacle	342	(1)
Antitrust as Policy	343	(2)
Looking to the Future	345	(15)
Clearing the Glut	345	(1)
Consolidating Further	346	(2)
Reforming Management	348	(1)
Continuing Research	349	(1)
Reviving Policymaking	350	(1)
Summing Up	351	(9)
Appendices
A. Regulatory Concepts in Telecommunications Economics, Finance, and Accounting	360	(1)
A.1 Regulatory Regimes	360	(16)
A.2 Cost Issues	367	(5)
A.3 Pricing Issues	372	(4)
B. Glossary	376	(8)
C. Chronology	384	(10)
D. Historical Statistics	394	(4)
References	398	(13)
Author Index	411	(4)
Subject Index	415