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Attention all major Wireless Telephone®™© Companies and WiTEL - Wi-Fi Broadcasters. The Next Century of the Wireless Telephone®™© is waiting for you! Get Ready for 2009 -- the 101st year of the Wireless Telephone®™© Organization . . . See WiTEL.org . . . "

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NBS100 TELECOM STUDY - "A"
EXECUTIVE SUMMARY
TheNBS100
Study of FCC
Executive
Summary
TimeLine
Gov. Control
Remedies
Legal Opinions
Content
Acknowledgments
The Movie
"Wireless"

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"The Deal To Steal"
NBS100 FTC STUDY - THE Red Flags Rule
"ID Theft Prevention" - for the Wireless Telephone®™© Industry"
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Murray State University - "Teléph-on-délgreen"
Birthplace of the Wireless Telephone®™© - 1892

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 See Testimony of FCC Chairman, Kevin J. Martin -- Fiscal Year 2006 Budget Estimates Wireless Auctions Funding Report Tuesday, April 26th, 2005: Total Received since 1995 = $26.8 billion + $18 Billion due from Projected Frequency Sales in - 2006-2010. FOR MORE STORY
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••• As many as nine million Americans have their identities stolen each year. Identity thieves may drain their accounts, damage their credit, and even endanger their medical treatment. The cost to businesses -- left with unpaid bills racked up by scam artists -- can be staggering, too.
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NBS100 TELECOM STUDY - EXECUTIVE SUMMARY -
Regulatory Missteps

In the now famous lecture in the praise of patent laws, Abraham Lincoln spoke of the importance of protecting and encouraging the fire of genius, in the discovery and production of new and useful things. 2006/ImagesStub/nbsPayToPlayTruck108p.jpg
• • The realationship between the Government, its reglatory agencies, and its citizens, is one that could be described as one who acts in the capacity as a fiduciary. And it was John Locke who wrote, "Government has no other end than the preservation of property."

• • Before becoming president, Lincoln's lectures always stressed ownership, it was the fruits of labor. He stated in 1858, "man is not the only animal who labors; but he is the only one who improves his workmanship." In 1859 he praised the patent laws for having "secured to the inventor, for a limited time, the exclusive use of his invention; and thereby added the fuel of interest to the fire of genius, in the discovery and production of new and useful things."
• • Regulatory seizure of private assets and the use and/or sale of thereof by an agency of the government, is a threat to our private property rights, no matter when or where they may arise. Any regulatory seizure of private property must be made clear to the public and addressed through responsible government action.
• •
If industry leaders, legislators, and even the Supreme Court agree that the a Government regulatory has repeatedly violated Congress's intentions of any Telecom Act, and needlessly allowed for the property rights of companies and/or patent holders to be violated under any Telecom Act since 1908, is a breach of a government fiduciary.
• •
Forced access is a dismal policy failure whose time must end. For the purpose to demonstrate this breach, the Telecom Act of 1996 is used as a model, along with the Telecom study in 2005 by PCI: CROSSED LINES: Regulatory Missteps in California Telecom Policy.

This NBS100 TELECOM STUDY on the regulatory missteps and Property Seizure that has and still is taking place in the U.S.A. -- attempts to demonstrate the primary factor in America's lowly ranking in the deployment of advanced technologies and the reason why NBS100 encourages that monetary damages should be paid for the regulatory seizure of frequencies, that took place since 1908.
• •
Absent reform, and the payment of entitlements for the frequencies seized from NBStubblefield, and the rest of the Smart Daaf Boys since 1902, telecom policies that inhibit investment and innovation will continue to undermine job creation and economic growth, while inducing businesses to locate abroad.
• • Congress intended to modernize the nation's networks with passage of the Telecommunications Act of 1996. But through a series of missteps by state and federal regulators, the Act devolved into one of the worst examples of corporate welfare and regulatory abuse in recent times.
• • Principally, the practice of forcing the "Baby Bells" and other so-called incumbent phone companies to share their wire line facilities with rivals at government-set rates, dubbed "forced access," has inhibited investment in new, more modern and competitive networks. In no other state is this regulatory debacle more apparent than California, which can ill afford continued losses in the telecom sector.
• •
This report, along with the contributors to this NBS100 study, examines the developments leading up to the passage of the 1996 Telecom Act, the effects of forced access in California, and the challenges facing the telecom industry at a time of unprecedented regulatory uncertainty.

The following are thoughts that might help lead lawmakers out of the forced-access morass environment that are predetermined.

Modern telecommunications is a mixture of computer-wise software, dv-video tape, DVDs, CDroms, switches, and electromagnetic wave spectrums. But telecommunications policy doesn't have to be as complex if guided by three fundamental American principles. Among the most basic of these principles is honesty, competition and the protection of private property rights. CLICK FOR MORE STORY -

WHERE COMPETITION THRIVES
• • Wireless telephony presented, not only the greatest competitive challenge to wired line service in the 1900s, but at present.
• •
The failure of state and federal regulatory policy to stimulate meaningful competition in wire line services does not mean that consumers lack for choices in local calling services. Seemingly by the ends day, affordable telecom technologies and new applications come to market place out of nowhere, like Marconi's Dit Dahs and Stubblefield's wireless Voice systems did in the 1890s, and today's Internet and the wireless broadband video telephone.
• •
What skewed the Marconi and Stubblefield wireless voice telephone, was the name change, and it's challenge to replace land line phones with wireless. Of course history tells us, that dit dahs out performed voice radio transmission until the mid-1940s, because of pre-war and post war regulatory frequency seizures. After World War One was over in 1918, with Germany, so was the radio wave war between Dit Dah Code vs walkie talkie wireless telephones.
• •
But, AT&T was still the Telecom leader on American continent, because of its landline telephone and wireless telephone monopoly. At one time, they claimed to have the rights to all ads sold on local Radio Broadcast stations that were utilizing their landlines as an arial, to extend their listening audience.

WIRELESS TELEPHONY PRESENTS THE GREATEST COMPETITIVE CHALLENGE TO WIRE LINE SERVICE AT PRESENT.
• • Cellular subscriptions have increased from just 92,000 nationwide in 1984 to more than 165 million today. • 34
• •
A primary factor driving this extraordinary growth was the decision by Congress to relax the FCC's grip on the broadcast spectrum. In the early 1990s, the FCC had restricted the number of wireless carriers to two per market. The 1993 Budget Reconciliation Act, however, forced the FCC to auction spectrum for up to six carriers per market. Consequently, by 2003, more than 95 percent of the nation was served by at least three wireless services. • 35
• •
This growth is entirely due to wireless carriers competing in the open market to build their own networks, with none of the regulatory management of growth that has characterized wire line competition. Opening the market dramatically lowered prices. The average revenue for wireless service dropped from 47 cents per minute in 1994, before the spectrum auctions, to 29 cents in 1998; 18 cents in 2000; and 11 cents in 2002.
• •
Simply put, the average price per minute for wireless service decreased by more than 75 percent in the seven years after Congress eased federal regulation of the spectrum.
• •
During the same period, average monthly cellular usage by consumers rose from 119 minutes per month in 1994 to 427 minutes per month in 2002.
• • In response to the "open market", created by DeForest RADIO TELEPHONE COMPANY, Nathan B. Stubblefield's Wireless Telephone Company and his All Purpose - Wireless Telephone Patent, the DeForest Audion Patent, the formation of the CONTINENTAL WIRELESS TELEPHONE AND TELEGRAPH COMPANY, 1909, and a few other newly filed wireless telephone patents, and to the burgeoning land-line competition, American Telephone and Telegraph (AT&T) began buying up the stock and patents of their bankrupt rivals. But AT&T's acquisitions troubled federal authorities, which began considering antitrust action. This prompted AT&T company officials to propose what subsequently became known as the "Kingsbury Commitment," as more fully described herein. See Contents

Don't kid yourself about the Internet, Dot Com industry. It was created in the 90s, on purpose in the hall ways of copyright, trademark regulators. Congress forced incumbent local telephone companies to share their facilities with a group of predetermined rivals that would be charged at regulated rates, to jump start the new industry.
• • By lawmakers' reasoning, competitors would need to establish market share before they would build independent facilities with which to compete, and it worked. What followed was a new industry that became bigger and better than what happened after Congress came up with their telephone vs. wireless "radio" telephone, "Kingsbury Commitment," in 1913. The 1996 Act, created portals companies like Google and Yahoo; and online stores like Amazon and Ebay. AT&T: History: Milestones in AT&T History - 1913

AT&T History Links. Photo of cover of Kingsbury Commitment. The Kingsbury Commitment, published by the United States Government Printing Office in 1914.

THE INTERNET ROAD MAP
Congress delegated to the FCC the authority to determine which facilities should be shared, and how various parts of the network, called "unbundled network elements" (UNE), as well as the entire network platform (UNE-P) would be priced. However, lawmakers did establish an eligibility baseline for this subsidized access. It was not intended to be an entitlement. Eligibility was supposed to be based on whether a competitor would be "impaired" from competing if there was denied access.
• •
Section 251 of the 1996 Act directs the FCC to "consider, at a minimum, whether … the failure to provide access to such network elements would impair the ability of the telecommunications carrier seeking access to provide the services that it seeks to offer." (Emphasis added.)
• •
The FCC established a pricing formula for network elements, called "Total Element Long- Run Incremental Cost" (TELRIC), based on the cost of building and operating a hypothetical maximum-efficiency network. The rates subsequently calculated by most states cover an irrationally broad range, and most have proven to be economically unsustainable.
• • As can be seen, the principal problem of wireless and land-line networking, is not only the actual regulatory seizure of private property, but the fear of seizure of corporate assets after the conviction of a dishonest corporate officer. Rambastic Judges, prosecutors, court fines, restitution and bankruptcy, always takes its toll. Once the "takeover - merger syndrome" sets in, it invariably skews investment incentives for the general public. (i.e. - the buyout of MCI by Verizon in 2005).
• • In any subsequential serial sets of mergers and acquisitions, experience has shown that it usually reduces the number of regional operating companies from seven to four: SBC, Verizon, BellSouth, and Qwest. In California, Pacific Telesis Group (Pacific Bell) was acquired by SBC in 1997, and Verizon acquired GTE, another California carrier, in 2000.
• •
Competition in long distance service yielded dramatic consumer benefits. As shown in Figure 1, average revenues per minute for interstate and international calls originating in the United States dropped from 62 cents per minute in 1983 to 10 cents per minute in 2001. In many instances, calling across state lines and even international borders costs less than toll calls within a single state.
Effect of Competition on Long Distance Revenues - JUDGE GREEN RETAINED JURISDICTION OVER THE CASE FOR MORE THAN A DECADE, EFFECTIVELY ELEVATING HIMSELF AS THE NATION'S TELECOM CZAR. VIRTUALLY EVERY MAJOR BUSINESS DECISION REQUIRED APPROVAL BY BOTH THE JUDGE AND THE FCC.

• • In hindsight, competition might well have yielded the new technologies and applications that we have today, a little sooner, -- that instead took decades to achieve.
• •
The drawbacks to the regulated monopoly approach are now more widely recognized. Firms that enjoy government protection from competition, and for whom rates of return are guaranteed through regulation, face less financial pressure to innovate or operate efficiently.
• •
Moreover, bureaucrats often become so committed to the regulatory structure that they regard competition as a threat rather than as a potential solution to the very structural conditions that led to the adoption of regulation.

HOW IS A REGULATION CREATED?

By 1925, telecom rate regulation was in effect, as well as the regulatory seizure of private telecom property across most of the nation, and competition was either discouraged or explicitly prohibited. The regulatory structure was finalized when Congress created the Federal Communications Commission in 1934.
• • In enacting the Communications Act of 1934, Congress authorized the new agency to impose telecom service requirements at regulated rates. Any deviations in product or service required government approval. Odd as it may seem, these regulatory structures still partially persist even as Moore's Law -- the predicted doubling of data density every 18 months -- accelerates the pace of technological change.
• •
But as noted by a 1988 Department of Commerce report: "The chief focus of the Communications Act of 1934 was on the regulation of telecommunications, not necessarily its maximum development and promotion. (T)he drafters of the legislation saw the talents and resources of the industry presenting more of a Challenge to the public interest than an opportunity for national progress." • 9

LEARN MORE ABOUT -- HOW ARE REGULATIONS CREATED? - NBS100f Executive Summary "F" / -- The 1970s Breakup of the Bell System Challenges to AT&T's and the Communication Act of 1996 

 

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_____________
Feature Story / tvinews News Convergence - This Weeks
MORE STORY - NBS100b Timeline "A"
MORE STORY - NBS100b Timeline "B" / 1905 to 1910 - "The Wireless Patents"
MORE STORY - NBS100c Timeline "C" / 1910 to 1916 - "The Monopoly"
MORE STORY - NBS100d Timeline "D" / 1916 to 1925 - "The World War
MORE STORY - NBS100e Timeline "E" / 1925 to 1934 - "Radio Stations / FCC
MORE STORY - NBS100f Exhibit "F" / About The NBS100 Report
MORE STORY - NBS100g Exhibit "G" / About the Act of 1996
MORE STORY - NBS100h Exhibit "H" / Wireless Frequency Sales / PayBack Time
MORE STORY - NBS100h Exhibit "I" / Wireless / PayBack Time
MORE STORY - "NBS100J" / PCI STUDY: CROSSED LINES: Regulatory Missteps
MORE STORY - "NBS100K" / NBS STUDY: Ddiaries - Follow The Money
MORE STORY - "NBS100L" / NBS STUDY: LookRadio - Follow The Money
MORE STORY - "The Movie" / NBS Film Treatment: The Movie - Wireless

///

TIMELINE /CENTER STORY

Section B: TIMELINE / http://www.smart90.com/nbs100/NBS100reportB.htm
MORE STORY - NBS100b Timeline "B" / 1905 to 1910 - "The Wireless Patents"
MORE STORY - NBS100c Timeline "C" / 1910 to 1916 - "The Monopoly"
MORE STORY - NBS100d Timeline "D" / 1916 to 1925 - "The World War
MORE STORY - NBS100e Timeline "E" / 1925 to 1934 - "Radio Stations / FCC
///

ByLine / Source of Study

Section - Study A: / "NBS100J" / PCI STUDY: CROSSED LINES: Regulatory Missteps
Section - Study B: / "NBS100K" / NBS STUDY: Ddiaries - Follow The Money
Section - Study C: / "NBS100L" / NBS STUDY: LookRadio - Follow The Money
Section - Movie Treatment: / "The Movie" / NBS Film Treatment: The Movie - Wireless

Timeline Exhibit "E" / 1925 to 1934 - "Radio Stations / FCC formed / FOR MORE STORY - NBS100e Timeline "E" / 1925 to 1934 - "Radio Stations / FCC formed

 

CLICK TO SEE PATENT - Mechanical Telephone Patent No. 378,183, February 21, 1888. when once there Click Full Text to refresh page, (See NBS100 Timeline)

CLICK TO SEE PATENT. - United States Patent No. 600,457, Granted May 8, 1898. Click to Go To US Patent Office -- then Click Full Text to refresh page.

MORE STORY - BRIEF HISTORY and Timeline OF TELECOM REGULATION and PATENT CONSTRAINTS.

MORE STORY - NBS100f Exhibit "F" / EXECUTIVE SUMMARY / The NBS100 Report -- See Introduction - Communication Act of 1996 Exhibit "F"

Timeline Exhibit "A" / 1868 to 1905 - "The Land-line to Wireless" / FOR MORE STORY - NBS100a Timeline "A" / 1876 to 1905 - "The Land-line Telegraphy and Telephone"

Timeline Exhibit "D" / 1916 to 1925 - "WT Patent Expires" / FOR MORE STORY - NBS100d Timeline "D" / 1916 to 1925 - "The World War & Regulatory Seizures

FOR MORE STORY - NBS100d Timeline "D" / 1916 to 1925 - "The World War & Regulatory Seizures"
///

Respectfully Submitted
Josie Cory
Publisher/Editor TVI PUBLISING
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