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Regional Bell Operating Companies RBOCs
In 1984, due to divestiture, AT&T consolidated its 22 Bell operating
companies into 7 Regional Bell Operating Companies (RBOCs). These
companies would be in charge of all local telephony services.
The RBOCs were:
- NYNEX
- Bell Atlantic
- Bell South
- Southwestern Bell
- Pacific Telesis
- Ameritech
- US West
Once the RBOCs were established, three large Independent Telephone
Companies (ITCs) appeared. These three companies were formed through
purchases of smaller independent companies by larger ones.
These companies were:
- General Telephone and Electronics (GTE) - Stanford
- United Telephone Systems, Inc. - Kansas City
- Continental Telecom Inc. - Atlanta.
Additionally, other Independent companies still operated pin remote
areas.
After a further series of buy-outs and mergers, four RBOCs remained:
Southwestern Bell Communications: Result of the merger of
Southwestern Bell, Pacific Telesis, Southern New England Telephone
and Ameritech.
Verizon: Result of a merger of Bell Atlantic and NYNEX that
became Bell Atlantic. Bell Atlantic purchased General Telephone
and Electronics (GTE) and renamed it to Verizon.
Qwest: Result of the purchase of US West by Competitive
Local Exchange Carrier (CLEC) carrier Qwest.
Bell South: The same Bell company that started the industry.
It is now divided into different regions, such as Bellsouth, Southwestern
Bell, etc.
Competitive Local Exchange Carrier
CLECs
As geographic areas were established for the regional bell operating
companies (RBOCs), independent (non-Bell) local service providers
were also allowed to operate in these areas. These companies are
known as CLECs (competitive local exchange carrier). The inclusion
of these companies in each geographic region assigned to the RBOCs
was done in the hope of fostering competition in the local market.
CLECs are companies that have the capacity of competing with the
established local telephone business, due to the fact that they
have their own network and switching facilities. As competition
grew, President Bill Clinton signed the Telecommunications Act of
1996. which dramatically changed the ground rules for competition
and regulation in virtually every sector of the telecommunications
industry. One of the fundamental concepts introduced at this point
was the division of regions into LATAs (Local Access and Transport
Areas).
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