Digital Giants Business Practices Quiz

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Questions and Answers

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?

<p>Baby Bells were launched (C)</p> Signup and view all the answers

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

<p>Cannot discriminate against customers or call content (C)</p> Signup and view all the answers

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

<p>Ensures fair pricing and interconnection (D)</p> Signup and view all the answers

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

<p>AT&amp;T claimed it was a natural monopoly and needed to control the entire telephone network (D)</p> 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?

<p>The Hush-a-phone (A)</p> 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?

<p>It allowed more competition in the telephone equipment market (C)</p> 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?

<p>The FCC was concerned about the impact on AT&amp;T's monopoly (A)</p> Signup and view all the answers

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

<p>The government wanted to promote greater competition in the telephone industry (B)</p> Signup and view all the answers

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

<p>To create a single, unified telephone network in the US (D)</p> Signup and view all the answers

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

<p>The FCC was given regulatory oversight of AT&amp;T's monopoly in 1934 (D)</p> 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?

<p>The government believed a single, unified telephone network was necessary for universal service (C)</p> Signup and view all the answers

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

<p>It allowed more competition and innovation in the telephone equipment market (B)</p> 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?

<p>The government actively promoted competition in the long-distance market (D)</p> Signup and view all the answers

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

<p>The major cellular phone service providers in the U.S. (A)</p> Signup and view all the answers

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

<p>To achieve economies of scale and increase market share (B)</p> Signup and view all the answers

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

<p>A telecommunications equipment manufacturer acquiring a cellular network operator (A)</p> Signup and view all the answers

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

<p>A cellular phone service provider merging with another cellular phone service provider (C)</p> Signup and view all the answers

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

<p>Lack of competition leading to higher prices and reduced innovation (D)</p> Signup and view all the answers

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

<p>A cellular phone service provider acquiring a cable TV company (A)</p> Signup and view all the answers

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