Word: mci
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...there was some satisfaction among other phone companies over the FCC decision. As part of its ruling, the agency also allowed MCI Communications, Sprint and other long-distance competitors of A T & T to offer a deep discount, at least until the time when it is just as easy to use the new services as those of AT&T. Currently, MCI customers must punch in up to twelve extra numbers to make a long-distance call. The net effect of last week's action, said MCI Chairman William McGowan, "will be healthy competition in the long-distance market...
...came in the pretty much made it clear to everyone that they were going to go into the computer business," an uncharted territory for BBN. While the computer division did not turn a profit until 1982, its early contracts have been encouraging, yielding a major deal to develop the MCI Mail communications system along with a boom in computer contracts with the Defense Department. Last year, approximately 80 percent of the firm's $85 million sales came through government agreements...
...also decided to lift all rate regulation from MCI, Sprint and the other emerging long-distance carriers that compete with AT&T's long-distance service, and that in most cases already undercut its prices. The move was largely symbolic. The new long-distance carriers have been regulated scarcely at all since their inception. Nevertheless, AT&T was hardly happy about the decision The FCC left AT&T fully regulated, as the dominant carrier by far of long-distance calls. The company still must submit rate changes to the Government and justify them with elaborate data. Said...
Local rates have been artificially low for years because state and federal regulators have required Ma Bell to use revenues from long-distance tolls to subsidize basic phone service. But in order to encourage sharper competition among AT&T and such new rivals as MCI and GTE Sprint, the FCC decided to do away with inflated long-distance rates. The agency ruled that when AT&T spins off its regional operating companies on New Year's Day, it will stop paying local subsidies, which now amount to about $10.7 billion. The new $2-a-month local charge is intended...
...their communication components from other suppliers rather than just from the Western Electric unit of AT&T. The judge also directed AT&T to help local phone companies recover the estimated $2.6 billion that it will cost to provide equal-quality access to long-distance carriers like Sprint or MCI, which compete with A T & T. If the local companies are unable to pay off the costs by 1994 through fees charged to the longdistance companies, AT&T will have to pick up the remaining expenses...