, but the regional network remained a monop- world, and the lessons learnt there are often studied by other coun- oly. (Modified Final Judgement or MFJ). tries starting down the privatisation and liberalisation path. 1984. On 1 January 1984 the MFJ ruling became effective, result- The regulatory framework of US telecommunications was set by ing in the AT&T divestiture. the 1934 Communications act which also set up the Federal Com- munications Commission (FCC). The FCC has the responsibility to Following divestiture the twenty-two local operating companies administer telecommunications on behalf of the US government. of the Bell system were formed into seven regional holding com- Telecommunications competition can be considered to have panies, often referred to as Regional Bell Operating Companies started in 1959 when the FCC authorised the use of private micro- (RBOCs) or 'Baby Bells'. They are shown in Figure 11.3. They NYNEX US WEST COMMUNICATIONS Schaumberg ATLANTIC San Ramon AMERITECH Silver SERVICES Spring BELLSOUTH Denver PACIFIC SERVICES St.Louis TELESIS Atlanta SOUTHWESTERN Figure 11.3 Regional Bell Operating Companies The key players 11/7 provide the bulk of the local exchange infrastructure and are In order to increase competition and to ensure that the dominant referred to as local exchange carriers (LEC). Under the terms of the carriers provide fair access to service providers, the Open Network MFJ the RBOCs had to provide equal access to all long distance Doctrine (OND) was introduced (Patel, 1982). carriers. In addition there are several other local operators, referred to as bypass carriers. They generally provide a service to large busi- 11.3.3 Europe nesses, linking them to one or two long distance companies at competitive rates and also ensuring security of supply. 11.3.3.1 The European Community AT&T continued to provide long distance or interexchange (IXC) services along with other competitive carriers, such as MCI Com- The European Community can be considered to be made from three munications 