Verizon Communications


The main drive to break up AT&T in 1984 was to end the vertical integration between manufacturing and near-monopolistic service activity. Accordingly, the telephone market was split into a fully competitive segment of long-distance telecommunications, in which AT&T was restricted in compensation for being authorised to keep its manufacturing activities, and a local telecommunications segment. The break-up resulted thus in the creation of the seven RBOCs (Regional Bell Operating Companies) which provided local telephony services in different geographical areas. The RBOCs basically remained monopolies within their franchise areas and were thus also referred to as incumbent local exchange carriers (ILECs). Then, the Telecommunications Act of 1996 introduced competition in the local exchange market through the introduction of ULL (Unbundling of the Local Loop). New entrants thus gained access to the local loop while ILECs were allowed to offer long distance services and thus compete against AT&T and other long-distance carriers. More...

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