Article Abstract:
Long-distance telephone companies are preparing to enter the $100 billion local phone market as the result of new federal regulations opening the telecommunications industry to competition. AT&T, MCI Communications and Sprint Corp will invest billions of dollars in developing local systems that will compete with the regional Bell operating companies (RBOC). The long-distance companies and RBOCs plan to offer one-stop shopping for all phone services as well as cable TV offerings. Market research shows a demand for a single source for these services and customers can expect the competition to result in lower prices. The phone companies are answering this demand by packaging a variety of voice and data communications offerings with entertainment services. An FCC ruling issued in Aug 1996 makes it easier for long-distance companies to lease RBOC facilities, offering 17% to 25% discounts to companies that will resell the RBOC services.
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Article Abstract:
AT&T is testing wireless technology which would link home telephones to a global AT&T network, allowing the company to compete with the Baby Bells, GTE, and other local service providers. AT&T may offer unlimited service for as little as $10 a month, which would lead to a major restructuring of the telecommunications industry. AT&T has spent $20 billion on its wireless network, using a high-frequency spectrum acquired in government auctions over the last two years. The new network will link to AT&T's successful Digital PCS cellular service. The company hopes to convert its 80 million long distance customers to digital services over the next few years. AT&T's new digital technology would integrate home, cellular, and messaging services with one sophisticated, yet inexpensive, box. AT&T also continues to make deals with Baby bells and local carriers for access to local telephone networks.
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Article Abstract:
Nynex Corp, Northern Telecom Inc and IBM will announce a new telecommunications service known as Caller ID that will make sophisticated voice and data communications services available to many more users. The services were previously available only to firms large enough to invest in private networks. Caller ID will allow any organization with an IBM computer to link that computer with a Northern Telecom central office switch at the phone company. That link would then enable users to transmit information from their computer to the computer of the party being called as soon as the call is answered. Observers say the service is the first technology to connect the capabilities of the computer and telecommunications into a package that is useful to a wide range of organizations.
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