petition& Regulation.doc

petition& Regulation
munication
Competition & Regulation
Kaili Kan
May 9 - June 20, 2002
******@public33>..cn
ftp://
Why petition and regulation ?
current bottle-neck to development
key factor to pany’s ess/failure
key knowledge and skill for /IT career
most likely to affect your career in /IT
Make wise investment (now) and decisions (future) that you will never regret!
Course Contents
Evolution of petition vs.. monopoly
Evolution of munication technology
munication regulation under monopoly petition:
licensing,
interconnection,
tariff,
competition policy,
universal service
I Evolution of petition Vs. Monopoly
Those who understand the past see the future.
Stages of Development
in the US
1877 - 1893 Monopoly under patent protection
1893 - 1913 petition
1913 - 19>984 Regulated monopoly
1984 - petition in long-distance + regulated monopoly in local services
1996 - Attempting petition
1. Monopoly under Patent Protection (1877 - 1893)
The Establishment of Bell’s Monopoly
1876 Telephone patent by Alexander Bell (and Tom Edison)
1877 Founding of Bell Telephone Corp.
1878 Bell Vs. Western Union on telephone patent
WU expelled from telephone services
Bell’mitment not to engage in telegraph services
Bell’s telephone monopoly established
Expansion of Bell
work expansion:
1878 11,000 telephones, 3 central offices
1892 266,431 telephones
1882 Western Electric acquired (manufacturing arm)
1885 America Telephone & Telegraph (long distance arm)
Vertically integrated monopoly
Strategic Decision
Decision facing patent expiration:
maximize profit
maximize market ration
Lesson: monopoly can only be temporary
2. petition
(1893 - 1913)
Arrival petition
1893 Bell patent expired:
competition started in rural areas
competition expanded into urban areas in late 1890s
over 6000 local panies formed
1899 AT&T acquired Bell
1902 AT&T 1,317,178 phones (55%), independents 1,053,866 phones (