Jeff Whippo Talks Effect of 1984 Modified Final Judgment on Structure of Telecommunications Industry

Jeffery Whippo Discusses the Effect of the 1984 Modified Final Judgment on the Structure of the Telecommunications Industry

Dr. Jeffery Whippo Explains the 1984 Modified Final Judgment on the Structure of the Telecommunications Industry ď ľ Dr. Jeffery Whippo, Ph.D., D.B.A., shares his views on how the 1984 Modified Final Judgment on the Structure of the Telecommunications Industry led to progressive deregulation. ď ľ He explains that the AT&T breakup (Modification of Final Judgment, "MFJ") in 1984 resulted in competition in manufacturing, long distance, and information services, while it kept the regime of regulated monopoly in local telephony.

AT&T Giving Up Its 22 Local Bell Companies Due To Pressure from The Court

ď ľ Jeff Whippo describes that on January 1, 1984, a court forced AT&T to give up its 22 local Bell companies and established 7 Regional Bell Operating Companies (RBOC). ď ľ A few local companies that were not wholly-owned subsidiaries of AT&T remained independent, but the RBOCs were very powerful and covered the US.

The Effect of the Breakup of AT&T

ď ľ Jeffery Whippo explains that the direct effect of the breakup of AT&T was competition in long distance. ď ľ Since that time, mergers have reduced the number of RBOCs to four: Verizon (originally Bell Atlantic and Nynex), Qwest (Qwest Communications International took over US West), BellSouth and SBC (originally Southwestern Bell and Pacific Telesys).

Here’s What More the Modification of Final Judgment Led To  Dr. Whippo says that in parallel, the wireless telephony grew to great success.  The “World Wide Web" emerged as a ubiquitous network "living" on top of the telephone network, and cable television achieved high penetration.  Furthermore, that Modification of Final Judgment led to new (and cheaper) wireless services (Personal Communications Services "PCS") and direct satellite broadcast to the market.

Thank You Jeffery(Jeff) D Whippo