able. AT&T acquired TCI cable to address their need to entering the local telephone service market once again. In addition, the purchase gives AT&T better access to provide internet services to consumers because TCI Cable owns a part of @Home, Inc, a provider of fast internet connections into the home through cable modems. Long Distance Telephone Business Perks Up. Revenue growth averaged 10.3% for the top three long distance providers. This can be attributed to increased industry consolidation, fewer promotional deals, and enhanced services.FCC Carries a Big Stick. FCC continues to analyze the GTE/ Bell Atlantic merger. A decision should be made by the end of year 2000. The key issue with this merger is apparently how it could reduce competition within the north Atlantic region. It's believed this merger has many overlapping pitfalls for consumers. The FCC canceled the MCI WorldCom/ Sprint merger which would have created an extremely dominate internet data network and cellular phone network throughout the world. This merger would have put the combined company in the two fastest growing sectors of the telecommunications services industry. The main issue was market dominance. WorldCom is the premiere provider of end-to-end communications in the U.S.while Sprint is the third largest long distance company and the leading wireless provider in the U.S.INDUSTRY ISSUES The telecommunications services industry faces many issues concerning regulation and competition in the domestic market. The FCC must rule local Bell Operating Companies (BOC) access fee charges to long distance companies. Though access fee rates have come down significantly over the years, long distance companies are still at a competitive disadvantage.The Telecommunications Act of 1996. The Telecommunications Act of 1996 allows local telecommunication companies, long distance, and cable TV operators to enter each others markets. This act enables these ...
