Buisines

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Words: 499

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Category: Business and Industry

Date Submitted: 04/28/2011 09:37 AM

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2 service changed dramatically.The Federal Communications Commission instituted a charge to the effect that customers should have “access” to long – distance companies whether or not they were in the habit of making long distance calls. Consumer groups, including the Consumer Federation of America and the Congress of Consumer Organizations, had joined the protest, increasing their attention on the industry and intervening in regulatory proceedings wherever possible.The FCC was considering deregulating as much of the industry as possible, and congress was looking over the commissioner’s shoulder.Meanwhile, the Department of Justice and Judge Harold Greene both of whom were responsible for monitoring the AT & T divestiture) continued to argue about what business companies like Tri – State should be engaged in. In addition, technology was changing rapidly.Cellular telephones, primarily used in cars, were now hand-held and could be substituted for standard phones. Digital technology was going forward, leading to lower casts and requiring companies like Tri – state to invest to keep up with the state of the art.Meanwhile, rate increases negotiated during the inflationary 1970s were keeping earnings higher than regulators would authorize.New “Intelligent” terminals and software developments gave rise to new uses for the phone network (such as using the phone for an a arm system), but as long as customers paid one flat fee, the phone company could not benefit from these new services. Godwin’s company has recently proposed a new pricing system whereby users of local telephone services would simply pay for what they used rather than a monthly flat fee.All of the senior managers were convinced that the plan was fairer, even though some groups who used the phone with netable frequency (like real estate agents) would pay more.It would give the company an incentive to bring new services to their customers, and customers would be able to choose which ones to buy.None of them had...

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