Article Abstract:
The seven Bell companies are struggling to maintain a unified front as Congress prepares the telecommunications bill, but their separate interests strain the coalition. When questioned about a lack of unity, Bell executives vigorously deny that the coalition is threatened. A 1994 telecommunications bill nearing passage was killed after BellSouth and US West left the alliance. The latest rumors were sparked by a US West letter sent to some Congress members in which the company objects to provisions in the bill despite the fact that the coalition as a whole has approved the bill. The telecommunications bill began as an effort to free the Bells from the regulations imposed by the 1984 antitrust decree that divided the Bell System. Since becoming separate companies, the Bells have developed different strategies that make some welcome competition from long-distance carriers while others seek to prevent it.
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Article Abstract:
Ameritech has asked the FCC for permission to provide long-distance service in Michigan, where it now provides local service. The telecommunication industry will follow the FCC's response closely as an indication of how the Telecommunications Act of 1996 will affect long-distance competition. The Act requires that regional Bell companies demonstrate that their local telephone service markets are competitive before they can enter the long-distance market. AT&T, claiming that Ameritech maintains a monopoly over Michigan's local service, has asked the FCC to refuse the application. Some experts believe the application will be denied because Ameritech has not yet finalized its agreement with AT&T granting AT&T access to its network. Other analysts feel the FCC will grant the request under pressure from consumer advocates and lawmakers demanding more long-distance service competition.
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AT&T chooses former R.R. Donnelley & Sons Chmn John R. Walter as president and successor to AT&T CEO Robert E. Allen, a decision some analysts question. Allen will leave AT&T in 1998, two years before he had originally planned to depart. Allen claims Walter is a good choice for AT&T because the Donnelley chairman led his company through a period of transformation in which the printing company left behind traditional practices and embraced electronic publishing. A similar revamping is necessary at AT&T, which has lost market share in its primary business, long-distance telephone service. Those opposed to the appointment point out that Walter lacks telecommunications experience and is not accustomed to dealing with government regulations or consumer marketing. Walter says he will try to make AT&T better at creating and delivering services.
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