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CHAPTER 1

· COM ACT OF 1934>PRINCIPLE OF UNIVERSIAL SERVICE

· TELECOM ACT OF 1996

IN THE BEGINNING

· 1876- ALEXANDER GRAHAM BELL / TOM WATSON

· WESTERN UNION DID NOT WANT BELLS COMPANY FOR $100,000

· 1877- BELL STARTED PHONE COMPANY

· THOMAS EDISON/ELISHA GRAY & WESTERN UNION COMPETED WITH BELL

· BELL WON LAWSUTE AGAINST WESTERN UNION

· 1900 AT&T BOUGHT LONG DISTANCE SERVICE-LONG LINES DEIVISION

· INDEPENDENT COMPANIES- RURAL AREAS/\ USITA- US INDEPENDENT TELEPHONE ASSOCITAION

· 1913 KINGBURY ACT- AT&T WAS TOLD BY FEDRERAL GOVERMENT NOT BUYING INDEPENDENT COMPANIES AND THEY COULD USE AT&T LINES

· 1934 COMMUNICATION ACT

· FRANCHISE- JACKSON COUNTY ANOTHER WOULD SERVICE BLUE SPRINGS ETC.

COMMON CARRIERS-RBOCS

1) CPE<CUSTOMER PREMISE EQUIPTMENT> ACCESS

2) TRANSMISSON

3) SWITHING

>INDEPENDENTS SHRUNK FROM 6,000 TO 1,000

>LARGEST ITC WAS GTE

>REA (RURAL ELECTRIFICATION ASSOCIATION) PROVIDED $ FOR ITCs

>7RBOC(REAMEAL BELL OPERATIN COMANY)= PACIFIC TELYSIS, AMERITECA, NYNEX, BELL ATALNTIC , US WEST, BELL SOUTH, SOUTH WESTERN BELL

> LONG DISTANCE CARRIES-IXC(INTER EXCHANGE CARRIERS)

>LEC(LOCAL EXCHANGE CARRIERS)

CHAPTER 2

FRANCHISE- IS CONTROLED BY THE PUBLIC UTILITIES COMMISIONS

ACCROSS STATE LINES OR NATIONAL DEALS WITH THE FCC-FEDRERAL COMMUNICATIONS COMMISSION

TARIFF- BILL OF SERVICE

· CHARGES AER INCREASED

· CHARGES REDUCED

· EXISTING SERVICE DISCONNECTED

· NEW SERVICES ARE OFFERD

DIVESTITURE OF 1984

· BREAAK UP OF AT&T

<>FOLLOWING THE CREATION OF MABELLS AND THEN THE BREAK UP OF MA BELLS

TELCOM ACT 1996 - MORE COMPETITIVE AND LESS REGULATIVE

95% UNIVERSAL SERVICE WAS ACHEIVED BY THE BOCs AND INDEPENDENTS BY $ FEA

· DOR-DIVISION OF REVENUE

· TOLL RATE AVERAGES

DOR- LOCAL,INTERSTATE,INTRASTATE

TOLL RATE SERVICE- BUSINESS PAY THE MOST $ FOR LONG DISTANCE, BUSINESS MUST SUBSIDISE RESIDENTIOAL CUSTOMERS

USS- USAGE SENSITEVE SERVICE

· LOCAL PHONE CALL

· LONG DISTANCE PHONE CALL

^MESSAGE MEETARED SERVICE SAM AS ^

EAS-EXTENDED AREA SERVICE---RURAL COMMUNITIES

UNSS- USAGE NON SENSITIVE SERVICE

· TELEPHONE EQUIPTMENT

Chapter 3

· FCC Ruleing<>><< 1968- earlys 80's ---foster fair competitiomn

· 1) Interconnect(EQUAL ALLESE)

· 2) dereaulation of lone distance

· 3) OCC's

1955-AT&T- EVERYTHING MUST BELEASED-MUST USE AT&T PHONES &EQUIPTMENT

EARLY 1950'S -- HUSH PHONE-- OFFICE PARTNERS COULD NOT HEAR EACH OTHER.

1955-BY ORDER OF THER FEDERAL COURT FCC TOULD THELCO HSUH PHONE IS NOW PERMITTED.

- CARTERPHONE- TOOK TELEOHONE CORVERSATION AND PUT IT ON A TWO WAY READIO FOR REMOTE AREAS.

1968-10 YEARS OF COURT DISPUTS

1968- RESULTED IN KEY SYTSTEMS BUSINESS OHONES , CARTER PHONES, ETC. ALLOWED ON CUSTOMERS PREMISSIS.

· 1) CUSTOMER PROVIDED EQUIPENT(LATER BECAME CUSTOMER PREMIISIS EQUIPTMENT)DEMARCATIONS POINT

-BLACK BOX OR COUPLE-

-1977- FCC DOCKET ELIMNIATING THE COUPLER(BLACK BOX)

CUSTOMER MUST

· 1) PROVIDE AND MANUFACTURES TAST DATA

· 2) REGISTER PRODUCT WITH FCC

-INVENTORS ARE BORN

-END USERS--->BUSNISNESS,RESIDENTAIL,REDERAL ADN STATE GOVERNMENT

-INTERCONNECT CONTRACTORS- SOLD EQUIPTMENT TO THE END USERS

-INTERCONNECT DITIBUTERS- SOLD EQUIPTMENT TO THE INTERCONNECT CONTRACTORS.

-1983-CI-2-COMPUTER 2 INQUIRY-]

1)MANDITORY TO BUY YOUR OWN EQUIPTMENT.

2) COMMAON CARRIER GROUND RULES ARE ESTABLISHED-(SEPERATE THE DEPARTSMENTS SELLS TELEPHONES AND SELL SERVICE)

-UNBUNDELED THE PHONE BILL-BREAK DOWN THE BILL

-INDEPENDENT CARRIERS DID IT BY BOOKEEPING

-BOCS AND OTEHRDEOMINATIONS ESTABLISHED PHYSIAL SEPARRATIONS CORPARATE ENTITIES.

-CUSTOMERS PREMISES EQUIPTMENT(CPE) IS COINED

-POTS -PLAIN OLD TELEPHONE SERVICE

-PACKET DATA ,LEASED-LINE(DDS) DILURM DATA SERVICE, WATS(WIDE AREA TELEPONE SERVICE) ETC., NON POTS SERVICE

-1971-SPECIALIZE COMMON CARRIER- PRIVATE LINE CATAGORY,DDS

- "CREAM SKIMMING"-HOOKED UP A LEC FROM CHICAGO TO SAINT LOUIS BY MCI(MICROWAVE COMMUNICATIONS INC.)

1978-REPEALED THE LAW OF PRIVATE LINES. (FCC SAYS THAT YOU CAN NOW INTERCONNECT TO LEC ACCORDING TO KINGSBURY LAW.

VACC- VALUE ADDED COMMON CARRIERS-EXECUNER,INTERNET,ATM, FRAME RELAY

1981- RESELLERS- BY SARED LINES,BUY IT WHOLSALE FROM TELCO., MARKUP COST, LEAST COST ROUTING(LCR)

RADIO COMMON CARRIERS(RCC)

SCC

RESELLERS

(OCCS)OTHER COMMON CARRIERS-DISADVANTAGES WERE,CALL THE OCC TELEPHONE#, DIAL PERSONAL ID,WHEN THEY DID THE INTERCONNECT THEY DIDNT GUARNTEE A GOOD LINE.

-EQUAL ACCESS-

1) MUST PROVIDE GOOD SERVICE AND EQUAL SERVICE TO ALL,

2) QUALITY INTERCONNECT,

3) EQUAL NUMBERING PLAN.

(FXO)-FORIAN EXCHANGER TRUNK

75% OF INCOME OF TELCO<LONG DISTANCE> COMES FROM BUSINESS CUSTOMERS

-RESELLERS

SHARED TENANT SERVICE (STS)-ONE STOP SHOP

-LOOK FOR ARRANGEMENTS WITH CRES

WIRELESS LOCAL LOOP

MMDS-MULTIPOINT DSTIBUTINO SYSTEM

CAPS- COMMPETTITIVE ACCESS PROVICEDER-DONT USE LEC SWITCH/ CONSTUCT TRANSMISSION SYSTEMS TO INCLUDE 1)FIBER OPTIC 2) ANTANIA FRAMS BUSINESS USE CAPS

LECS- PROVIDEING BY PASSES FOR OTHER LECS

CHAPTER 4

· BREAK UP OF BELL SYSTEM

· AFTER DIVESTRURE OF AT&T

· BREAK UP OF BELL SYSTEM LED CREDENCE TO THE COMPRETITION IDEA THAT A TELECOMMUNICATIONS ACT OF 1996 COULD BER CREATED

· 7 RHC- REGIONAL HEADING COMPANIES

· RBOCS USE RHCS AS FINACIAL BACKERS, 22 BOC , BELL OPERATING COMPONENTS.

· 1974 FEDRAL TRUST SUIT FILED ON AT&T

· 1983 FEDRAL COURT APPROVED DEVESTITURE PLAN APROX 10 YEARS LATER

· A MFJ(MODIFIDE FINAL JURESETN OCCURD) JUDEGE GREEN HAROLD.

· HAROLD GREEN SAY AT&T HAS TEH FOLLOWING BUSINESS ACTIVITES

· -1- LECS OPERATE IN WELLL DEFINED AREAS

· -2- ACCESS CAPARIOR OFFER COUSTREMS TO CONNECT IAC OF CHOICE

· -3- PRINTED YELLOW PAGES

· -4-CELLURAR MOLIE SERVICES

· -5- MARKET CPE EQUIPTMENT BUT NOT MANUFACTURE.

· AT&T AND 7 RBOCS ARE INDEPENDET OF EACH OTHER.

· RHCS FORMED BELCORE FOR R&D RESERCH AND DEVELOPEMENT.

· AFTER DIVESTIURE AT&T MUST REORGANIZE AFTER DIVESISTURE AND STAY WITHING THE CONSTAINTS OF CI2.

· AT&T COMMUNICATIONSW AS FROMED FOR REGULADE BUSINESS(LONG DISTANCE)

· AT&T TECNOLOIGES- FOR NON REGULATED BUSINESS(MARKETING TELEPHONES EQUIPTMENT)

· 1995 AT&T CREATED LUCENT - PRODUCES TELCOM EQUIPTMENT AT&T PROVIDES LONGDISTANCE SERVICE.

· FORMALLY AT&T HAS 22 LECS(BOCS),LONG LINES DIVISIONS, WESEREN ELECTRIC, BELL LABS

· GIS GLOBAL INFROMATION SYSTEMS-FORMALLY KNOONW AS NATIONAL CASHREGISTER

LEC- FRANCHISE AREA

INTER LATA

INTRA LATA

ITCS- INDEPENDENT CARRAIESS(OCCS)

GET THE BEST OF BOTH WORLDS ITS GET BILLING FROM INTER LATA AND INTRA LATA CALLS

LATA=MSA(MARKET SERVICE AREA

· 217 LATAS TOTAL(INCLUDEING CANADA)

· 30 ITC LATAS

CHAPTER 5

ACCESS CHARGES

· THIS CHAPTER DEALS WITH THE LECS A LITTLE BIT MORE PAIDE BACK SINGLE TO LATER RESULTS OF FCC AND FEDERLA GOVERNMENT ENACTED COMPENTITION.

· MFJ-REMOVED 50% OF THE RBOCS INCOME BY PROHIBITING RBOCS FROM F INTERATA TOLL.

· OCCS NEEDE TO REMBECS THE LECS

· FCC PASSES A SPECIAL TARIFF ENFIA-(EXCHANGE NETWORK FACILITIES FRO INTERSTAE ACCESS) CHARGED ON A MINUTE BY MINUTE BASE

· OCCs- COULD GET UP TO 55% DISCOUNT OFACEE CHARGE

· IN THE END THE OCCs AY 100% OF TEH ENFIA TARIFF

· IXCs CONTINUED TO PAY AND END USERS GOT CHARFGED FOR USE OF LESS ASSESTS.

· NEC-NATIONAL EXCAHNGE COMMISITON- SPONCERED COLLECTIONS OF MONIES FOR LECs AND DISTRIBUTION OF MONIES FOR LECs. THE MONEY LEFT OVER WAS GIVEN TO THE LARGEST LEC. <---POOL COMMON LINE TARIFF AND REVENEW POOL. <--- HELPED SMALL HIGH PRICE TELCOs HOLD DOWN THEIR ACCESS CHARGE RATES.

· EVENTUALY ROBCs AND LARGE ITCs LEFT NEC. BUT STILL HAD TO CONTRIBUTE TO THE POOL.

· CABs(CARRIER ACCESS BILLING)-SPECIALIZED WAY THE LEC BILLED IXC (WAS ITEMIZED) BASED ON WHERE CALL ORIGINATED FROM WITH IN LATA AND TERMAINATED.

· RESULTING REVENUE IS 70% OF LECs INCOME

· FCC ASKED LECs TO FILED THEIR ACCESS CHARGES BASED ON TS(TRAFIC SENSITIVE) & NTS(NON TRAFIC SENCETIVE)

· NTS LOCAL SUBSCIRIBER LOOP (END USER) A FLAT RATE WA CHARGED- THAT IS CALLED THE END USER COMMON LINE CHARGE.(EULC)

· IXCs MUST PAY SWITCHED ACCESS SERVICE CHARGE FOR TS & NTS END C/O SWITCHING FUNCTING ASED ON FEATURE GROUP A,B,C,,D

· A-IXC BILLED BY FLAT MONOTARY RATE RATEHR THEN ENFIA MINUITE BY MINUITE RATE.

· B-ORIGINATE CALL ANY WAERE IN THE LATA , NOT JUST THE LECs UARENTEES HIGH ER QUALITY TRUNK CONNECTIONS.(TRUNK - CONNECTION BETWEEN CENTRAL OFFICES)

· C-OFFERD ONLY TO AT&T WITHOUT DISCOUNT (TRADITIONAL TOLL SERVICE) ARRANGEMET OFFERED BY LECs TO AT&T BEFORE BREAKUP HAD GOOD LINES DISCONNECT SUPERVISSION ETC. (AT&T DOES NOT GET THE DISCONT BUT ALL OTHERS DO)

· D- ALL IXCs GET AN EQUAL ACCESS RATEAND ARE BILLE FOR MESURED USE.

· SPECIAL ACCESS CAHRGE(WHAT IXC PAY FOR ON SWITVHED PRIVATE LINE SERVICES.

· ETCs-ELIGIBLE TELECOMMUNICATIONS CARRIERS) RUAL AREAS

· SINCE THE TELCOM ACT OF 1996 THE FCC WANTS EVERYONE TO INTERCONNECT TO EVERYONE.

· EXAMPLE IF YOU CHANGE YOU KEEP YOU SAME PHONE NUMBER

· INCUMBENT LEC- MUST SERVE THE THE CLEC-(COMPETITIVE LOCAL EXCHANGE CARRIER) THE INCOMBETN LEC IS THE ALREADY EXISTNG LEC IN AN AREA AS OF 2/8/96 AND COMPETITIVE OR CLEC IS ONE WHO COMES IN TO COMPETE.

· INCUMBETNT LEC- FCC IMPLEMENTING NEW RULES INCUMBETN LEC MUST PROVIDE AND TECHNIALL FEASIBLE POINT FOR CLEC TO INTRECONNECT.

· FCC WANTS COMPETITORS TO HAVE EQUAL ACCESS BUT THEYDO WANT THE APPERIENCE OF PROTECTIONSIMS.

CHAPTER 6

SERVICE ENTRY -AKA FIREWALL

TLP-

· TANDEM OFFICEFS-MOST SET UP TOLL CALLS,WHWERE TEH END OFFICE TRUNKS CANOT EXISTS

· TOLL TANDEMS- THEIR TRUNKS ARE CALLED ITTs(INTER TOLL TRUNK)

· OTHER TOLL TANDEMS TRUNKS ARE CALLED TOLL COMPLETING OR TOLL CONECTING TRUNKS

· FORIEN EXCHANGE TRUNK-

· ClOSED END

· OPX-OFF PREMISESE EXTENSION-REPEARTER OF EXTERNDER.