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

NBS100 FTC STUDY - THE Red Flags Rule
"ID Theft Prevention" - for the WiTEL®™© Industry"
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120 PIXELS 3 columns

 NBS100 TELECOM STUDY - EXECUTIVE REPORT (continued) -
Regulatory Missteps
HOW ARE TELECOM REGULATIONS 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

• • The 1970s Breakup of the Bell System Challenges to AT&T's
protected standing arose in the 1970s, prompting the FCC to allow limited entry into long distance services as well as into enhanced applications such as computer processing. Local service, however, remained off limits to competition. This regulatory disconnect continued despite technological advances that rendered obsolete any distinction between local and long distance calling.
• •
In the mid -1970s, the U.S. Department of Justice filed an antitrust lawsuit against AT&T based on complaints by MCI and other long distance service providers. The lawsuit went unresolved for eight years. In 1982, the company settled with the government under conditions ordained by Judge Harold H. Greene of the Federal District Court for the District of Columbia.
• •
The landmark settlement required AT&T to divest its local operating companies, and to restrict its services to the long distance market. AT&T was allowed to keep its equipment operations. (These were later spun off as Lucent Technologies.) Judge Greene 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.
• • A subsequent series of mergers and acquisitions
reduced 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.

• • On March 7, 1876. Alexander Graham Bell patented his first version of the land-line telephone During the course of the next 20 years, the average number of daily calls per 1,000 population grew relatively slowly, from four to 37. *• • 06
• •
Just shortly before the Bell patent was to expire, in 1893, the world first wireless telephone was demonstrated in 1892, by Nathan B. Stubblefield. His wireless telephone worked along side his own telephone system, connected to his own local Murray, Kentucky Telephone company that serviced over 38 locals in Murray, Kentucky. State by State franchises for telephone rights or territorial deeds were sold in various parts of the United States. By 1889, his telephone system tied into the Bell system. 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)
• •
But once the Bell patents did totally expired in 1894, with no regulatory constraints, thousands of competitors, including Nathan B. Stubblefield, in Murray Kentucky, began wiring the nation, with their various telephone systems and territorial franchise agreements. The daily calling average per 1,000 people increased from 37 in 1895, to 391 in 1910.
• •
In 1898 0508 - Stubblefield patented his Transmission Coil Patent to secure his wireless telephone transmitter secrete, the Induction Coil, Earth Battery, that that could act as an undamped Electrolytic Oscillating Coil, and combination Electrolytic Detector/Arial, that could Transmit and receive voice signals from the atmosphere. 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"

• • In 1907, Bell rivals, controlled 51 percent of local service, by 1911, 70%. Of course by that time, the customers of Murray, Kentucky's NBS company, the DeForest RADIO TELEPHONE COMPANY, and the assets of the CONTINENTAL WIRELESS TELEPHONE AND TELEGRAPH COMPANY. • • 07
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"

• • The Mann-Elkins Act of 1910 made 1913, the year that ended telecom competition by "natural" reasons for regulatory property seizures of existing telecom patent rights, and its by-products. Frequencies and spectrums. They were confiscated by government regulators to control rates, environment, and service quality.
• •
The Act cemented AT&T's control of America's telephone land-line network. The monopoly put regulatory emphasis on the who's / who, and who's doing what to control the interconnections that were being tied into the future of the telecom system.
• •
The constraints, if any on AT&T, did not keep the company from concentrating its hold on major markets, and its land-line and wireless acquisitions, by mergers and butouts, similar to those that took place in 2005, during the America's war on terror.
• •
Thus, the Kingsbury Commitment was wholly in keeping with the brilliant strategy of AT&T's President, Theodore Newton Vail. AT&T was well-positioned to promote its land-line telephone and telegraph systems as a "natural monopoly" -- to converge itself into the world of wireless telegraph, the wireless telephone and Radio broadcasting. Each home/office, "will someday have one", said N.B. Stubblefield and Gen. Squire.
• •
Of course by 1913, the "wireless telephone" name was changed to "Radio" and the effect of the "One Policy, One System, Universal Service", was the rule of the day, "Regulatory Takeover".
• •
Public officials, eager to regulate the new nascent telecom industry, embraced Vail's motto of "One Policy, One System, Universal Service." Congress first vested federal regulatory authority over telephone services in the Interstate Commerce Commission, under the Mann-Elkins Act of 1910.
• •
The franchising of land-lines connected to the home or office in a municipality, were usually initiated by states and/or the municipality that wanted to be first to provide the converging changes that was taking place, and the first to control rates and taxable income. AT&T's Bell System, was the leading franchise.
• •
Today, each telephone subscriber is indebted to "N. B. Stubblefield and Gen. Squire drawings of telephone land-lines connected to planes, homes and ships", says Troy Cory-Stubblefield. Intel CEO, Craig Barrett, calls the connection of computing, streaming audio/video and movie content with the telephone company's land-lines - the complete "Digital Home".
• • The theory of "natural monopoly," now widely questioned, presumed that redundant telephone infrastructure was economically inefficient. This view was summarized in a 1921 report from the U.S. House of Representatives, which concluded that "There is nothing to be gained by local competition in the telephone business." • • 8

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

 

Section "F" "Executive Report / "NBS100F" / The NBS100 Executive Report
Section "G" The Act of 1996 /
"NBS100G" / About the Act of 1996
Section "H": Frequency Sales /
"NBS100H" / Wireless Frequency Sales / PayBack Time
Section "I": Sales ?? /
NBS100h Exhibit "I" / Wireless Frequency Sales / PayBack Time
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

NBS100 - 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.
• • 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."
FOR ANOTHER PAGE

----Since 1908 - the U.S. government has sold and granted licenses for the right to use the frequencies emitted into the atmosphere by the wireless telephone, radio, and television broadcaster. The amount exceeds more than $30 Billion Dollars.
----As the keeper and repository for the original Nathan B. Stubblefield wireless telephone patents and trademarks, 1898 and 1908 respectively, YOU HAVE ALREADY BENEFITED by the efforts of the Nathan B. Stubblefield Family Fund. (NBS100), has been accounting for the billions of dollars worth of wireless telephone frequencies, various governments have been sellling -- since 1908. The NBS100 team has contributed to the the following successful research projects:
----1. NBS100 participated in the TVI Publications of the History of Wireless Broadcasting and the Smart Daaf Boys, 1991.
----2. NBS100 participated in the recent China Xingtv, Wireless Webcast VRA TelePlay production of the Ddiaries, a television series about Wireless Telephone, the compass and the SMART DAAF BOYS
----3. NBS100 participated in the 1992, 1996 and 2002 demonstrations to finalize the inclusion and relationship of the Internet with Stubblefield's firewire and Wireless telephone system within the world wide Internet system.

 

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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

///

Respectfully Submitted
Josie Cory
Publisher/Editor TVI PUBLISING
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