Digital Giants Business Practices Quiz

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Which company was proposed to be broken up due to engaging in anti-competitive behavior?

T-Mobile

AT&T (correct)

Verizon

Sprint

What legal category is necessary when private companies conduct business on public networks like roads?

Carrier Regulation

Telecommunications Act

Competition Law

Common Carrier (correct)

In the context of telecommunications, what does 'True Universal Service' refer to?

Service provided to all members of the public (correct)

Service with varying prices for different customers

Service that can be interfered with by the carrier

Exclusive service to selected customers

What was the outcome for AT&T after being broken up in 1984?

Baby Bells were launched Signup and view all the answers

How are landline phones regulated in terms of being common carriers?

Cannot discriminate against customers or call content Signup and view all the answers

What is the significance of cellular and internet providers being regulated as common carriers?

Ensures fair pricing and interconnection Signup and view all the answers

What was the main reason the US government allowed AT&T to acquire its rivals, despite antitrust laws?

AT&T claimed it was a natural monopoly and needed to control the entire telephone network Signup and view all the answers

Which of the following devices was AT&T initially able to suppress from being connected to its telephone network?

The Hush-a-phone Signup and view all the answers

What was the primary impact of the FCC's 1968 decision to refuse AT&T's demand to suppress the Carterfone device?

It allowed more competition in the telephone equipment market Signup and view all the answers

What was the main reason Microwave Communications Inc. (MCI) was unable to get a license from the FCC to provide private long-distance service until 1969?

The FCC was concerned about the impact on AT&T's monopoly Signup and view all the answers

What was the primary reason the US government eventually broke up AT&T's monopoly?

The government wanted to promote greater competition in the telephone industry Signup and view all the answers

What was the main purpose of the 'Kingsbury Commitment' that was made by AT&T's Theodore Vail?

To create a single, unified telephone network in the US Signup and view all the answers

Which of the following best describes the FCC's role in regulating AT&T's monopoly?

The FCC was given regulatory oversight of AT&T's monopoly in 1934 Signup and view all the answers

What was the primary reason the US government was able to allow AT&T to maintain its monopoly status despite antitrust laws?

The government believed a single, unified telephone network was necessary for universal service Signup and view all the answers

How did the FCC's 1968 decision on the Carterfone device impact the telephone equipment market?

It allowed more competition and innovation in the telephone equipment market Signup and view all the answers

What was the primary reason Microwave Communications Inc. (MCI) was able to successfully challenge AT&T's long-distance monopoly in the 1960s?

The government actively promoted competition in the long-distance market Signup and view all the answers

Which of the following is an example of an oligopoly in the telecommunications industry?

The major cellular phone service providers in the U.S. Signup and view all the answers

What was the primary motivation behind the merger between T-Mobile and Sprint?

To achieve economies of scale and increase market share Signup and view all the answers

Which of the following best describes a vertical merger in the telecommunications industry?

A telecommunications equipment manufacturer acquiring a cellular network operator Signup and view all the answers

Which of the following is an example of a horizontal merger in the telecommunications industry?

A cellular phone service provider merging with another cellular phone service provider Signup and view all the answers

What is the primary concern raised by regulators regarding oligopolies in the telecommunications industry?

Lack of competition leading to higher prices and reduced innovation Signup and view all the answers

Which of the following is an example of a conglomerate merger in the telecommunications industry?

A cellular phone service provider acquiring a cable TV company Signup and view all the answers