(Attachment 2) Recent Telecommunications Trends in the U.S.

Business failures of new market entrants and Internet rate increases
New DSL and other providers succumb to excessive price competition.
RBOC and others raise DSL rates, etc.
Congress deliberates bill letting RBOCs offer long-distance high-speed data service unconditionally
Passes House committee, but fate in Senate is uncertain.
Government and states talk about, but do not implement, RBOC retail/wholesale separation
Senator Hollings and others introduce a bill to split RBOCs into retail and wholesale units.
New Jersey and a dozen other states ask state legislators for structural separation of AT&T, etc. However, no states actually decide on structural separation, and Pennsylvania opts for functional separation instead.
New FCC chairman Powell (Republican) pushes strongly for deregulation
Hints at spurring long-distance competition by easing restrictions on RBOCs.
Opposed to structural separation of regional companies.
Supreme Court currently deliberating Federal court ruling (July 2000) that access charges based
on a virtual model are illegal
Oral arguments given in October; decision expected next year.
AT&T reportedly in merger talks with RBOCs (BellSouth, etc.)


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