AT&T Agrees to Trial of Local Phone Service Competition

Strategic Insights -

AT&T has agreed to a Department of Justice plan that will allow Ameritech Corp. to offer long distance service in parts of Illinois and Michigan, contingent on the implementation of local phone service competition in the same areas. The trial is designed to test the feasibility of competition in local exchanges, with the aim of bringing choice, lower prices, and more features to consumers. AT&T Chairman Robert E. Allen hailed the trial as "good public policy" and a "high value proposition" for American consumers.

Key Takeaways:

  • The trial will be held in Chicago and Grand Rapids, Michigan, and will involve AT&T offering local phone service in these areas.
  • The trial has several preconditions, including unbundling, dialing parity, number portability, and commercially feasible resale.
  • The plan is an outgrowth of Ameritech's "Customer First" proposal, which aims to open the local market to competition.
  • The trial will be supervised by the Department of Justice and will be accompanied by appropriate safeguards.
  • The plan does not set a precedent for other Regional Bell Operating Companies and requires additional conditions for nationwide relief.
  • AT&T Chairman Robert E. Allen sees the trial as a test of local exchange competition, which will determine the feasibility of competition in the local market.

Statistics:

  • The trial will be held in two cities: Chicago and Grand Rapids, Michigan.
  • The trial has several preconditions, including unbundling, dialing parity, number portability, and commercially feasible resale.
  • AT&T has agreed to offer local phone service in the areas involved in the trial.
  • The trial is designed to bring choice, lower prices, and more features to consumers.

Sources:

  • "AT&T Agrees to Trial of Local Phone Service Competition" - PR Newswire, April 3, 1995.
  • Contact: Herb Linnen, 202-457-3933, or Jim McGann, 202-457-3942, both of AT&T.