Page 10-Tuesday, April 8, 1980-The Michigan Daily
COMPETITION TO REIGN IN TELEPHONE INDUS TR Y
FCC rules to benefit consumers
a
WASHINGTON (AP) - The Federal
Communications Commission (FTC)
approved a complete overhaul of
regulations governing telephone com-
munications yesterday, setting in place
rules designed to ensure competition,
benefit consumers, and change the
structure of the $50 billion-a-year in-
dustry.
By a 5-2 vote, the FCC voted to com-
pletely deregulate the telephone
equipment market, effective March 1,
1982, while setting up safeguards to
prevent the two largest companies -
American Telephone & Telegraph
(AT&T) and General Telephone & Elec-
tronics (GTE) - from monopolizing
that market.
Those safeguards include a
requirement that AT&T, also known as
the Bell System, will follow the lead of
GTE in establishing a separate sub-
sidiary to sell or lease phone equip-
ment. ,
THAT MEANS most Americans will
no longer be able to lease their phone
receiver directly from their telephone
company. It also means, however, that
all consumers will learn for the first
time exactly how much they are paying
to lease a phone and thus can decide
whether they want to purchase one, in-
stead.
The decision means AT&T will be
allowed to compete for the first time
with computer firms such as IBM
through its new subsidiary. Previous
interpretations of a 1956 consent decree
between AT&T and the Justice Depar-
tment have barred AT&T from such
competition.
"Todaywe have removed the
barricades from the door to the Infor-
mation Age," said FCC Chairman
Charles Ferris. "Government will no
longer be a barrier that prevents or
delays the introduction of innovations
in technology."
THE FCC decided it should stop
regulating phone equipment and let
competition rule.
To promote that competition, the
FCC voted to stop approving telephone
company rates that combine both
equipment and service fees into one
charge.
Thus after March 1, 1982, the cost of
service and the cost of equipment will
have to be stated separately, giving all
consumers the opportunity to deter-
mine easily how much they pay each
month to lease their phone.
THAT ALSO means the Bell System
and iits operating companies will no
longer be able to offer phone receivers
directly to customers. If Bell wants to
continue leasing phones to the public, it
will have to set up a separate sub-
sidiary to do so.
The new rules also specify that if Bell
decides to begin selling phone
receivers, its new subsidiary must give
the consumer the option of buying his
equipment on an installment plan so
that his total bill won't exceed what he's
paying now.
Consumers are already allowed to
purchase their phone receiver from an
independent manufacturer and receive
a credit on their monthly bill from Bell.
Since Bell leases phones directly to
customers, however, and that cost is
submerged within the basic service fee.
foters defeat Ypsi
rent control proposal
DEPARTMENT OF COMMUNICATION
Introduction to Organization Communication
The purpose of the course is to help students imp rove their understanding
of communication structures and processes in the organization. Students
will examine communication structures and processes at various organiza-
tional levels: intrapersonal, dyadic, group, network and organization.
Emphasis is on explaining communication behavior. Special attention is given
to the study of human motivation. Lectures, films and readings required. Three
written exams and group projects (e.g., the study of telephone dial access
systems, Issue advertising, etc.). For more information contact Professor
Rocco Di Pietro at 763-00x9, 2024 LSA Building.
Unofficial Results:
City Election 1980
First Ward
Susan Greenberg (D) 1202
(incumbent)
Don Hubbard (R) 606
Second Ward
Earl Greene (D) 494
(incumbent)
Toni Burton (R) 306
Third Ward
Cliff Sheldon (R) 1170
(incumbent),
Write-in votes 5
Fourth Ward
Barbara Perkins (D) 1334
David Fisher (R) 1888
(incumbent)
Fifth Ward
Thomas Bletcher (D) 570
Joyce Chesbrough (R) 1741
Ballot Proposals
Proposal A: Yes No
Sister Lakes Drainage 4420 4440
Proposal B:
South Industrial Highway 3642 5286
Republicans retain council
majority; students defeated
",
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BY MAURA CARRY
A rent control proposal for Ypsilanti
was soundly defeated in that city's elec-
tion last night by a margin of 3-1.
Democratic City Council member
Peter Murdock explained the proposal
would have required the election of a
rent control board which would have
reviewed all rent increases. These in-
NIGHT HAWK
SPECIAL
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21
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creases would have been based on net
operating returns, Murdock said.
THE PROPOSAL would have set
maximum allowable rents for housing
units. Certain types of housing, such as
fraternities and other student units,
would have been excepted, according to
Murdock.
Although Murdock supported the rent
control proposal, he said earlier
yesterday that he doubted that it would
pass. "There's not an overwhelming
turnout, and it's a large student area,"
Murdock said.
Murdock added that the proposed
rent control would have been directed
at "atrocious speculators," rather than
small owners and managers.
This is the first time a rent control
proposal has appeared on the Ypsilanti
ballot. Similar proposals have ap-
peared on the Ann Arbor ballot, in the
last two elections, but both were
defeated.
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The Department of Linguistics at the University of
Illinois at Chicago Circle offers work leading to the MA
in theoretical and applied linguistics, including an MA
in TESOL (Teaching English to Speakers of Other
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Beginning in the Fall Quarter, 1980,.the Department of
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1306 S. University
Open 7 days
8:30-11:00 p.m.
Until midnight
Fri. and Sat.
(Continued from Page 1)
out. The Dems just have more people in
the First Ward. But we still took some
Republican areas (the 12th and 13th
precincts)," she said last night at
Comicks, the Democrats campaign
headquarters.
A majoriity of voters in all but one of
12 Fifth Ward precincts elected
Republican Joyce Chesbrough to her
first term on city council. Democrat
Thomas Bletcher was defeated three to
one in his quest for Republican James
Cmejrek's council seat.
"I THINK IT'S the largest
Republican win in the Fifth Ward in a
long time," Chesbrough, a former
member of the Ann Arbor
Transportation Authority board, said.
Republican Clifford Sheldon ra
unopposed in his bid for a second ternm
as Third Ward councilman.
By just 20 votes, voters turned down
Proposal A which would have
authorized the city to borrow $575,000 to
build a drainage system in the Sister
Lakes neighborhood on the city's west
side.
VOters also rejected a $325,000 bon-
ding proposal to finance improvements
to South Industrial Highway in the
city's Fourth Ward.
COMING APRIL 22 COMING SOON:
1-2-3 FREE SPECIAL 254 MEAL DEAL
Andrew Schiller, Head
Department of Linguistics
University of Illinois at Chicago Circle
Box 4348
Chicago. I 60680
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