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900 / Pay-Per-Call Services
1986: Allnet
With the Modified Final Judgement (MFJ-1984), or the agreement between AT&T and the Justice Department to break up the monopoly of U.S. telephone services enacted, the market for new telecommunications-based services began to blossom. Allnet (later acquired by Frontier Communications) was the first to offer pay-per-call services identified by the Service Access Code (SAC) '900'. The service was marketed by a company called Jaywin Communications, and offered different rates for regional or national coverage. Unlike '976' services, restricted to a local area by the Regional Bell Operating Company (RBOC), '900' services were able to address a national market for information by phone. 1987: Telesphere
Encouraged by their succeses in the operator services arena, Telesphere Communications began offering transport, billing, and collection for 900 services on a national scale. Despite the later entry of the 'big three' into '900' services the next year, Telesphere was able to sustain a substantial market share until 1991 1988: AT&T, MCI, Sprint
When AT&T, MCI, and Sprint entered the market to provide '900' services, the industry had 'arrived'. By 1991, total gross revenues for the '900' industry were approaching $1 Billion. Within a short time, Sprint modified its position to accept only a limited number of information programs, while there has been a general trend toward more varied programs and additional services by AT&T and MCI. 1992: Telephone Disclosure & Dispute Resolution Act
The Telephone Disclosure and Dispute Resolution Act of 1992 (TDDRA) established specific requirements for advertising, operating, and billing for '900' services. With the new regulations, carriers were able to reduce the amount of oversight previously provided through carrier billing guidelines. The new regulations also restricted or eliminated some high revenue programs that were causing consumer dissatisfaction. Revenues dropped 50% in one year, but the industry that remained was firmly established. Revenue growth in Consumer and Business programs began and is still underway. 1995: Canadian 900 Service
"900" services were introduced in Canada, and operate similarly to those in the U.S. The Canadians learned from some of the mistakes made in the U.S., and some of the mistakes are being repeated. The primary differences between U.S. and Canadian services has to do with the way their telephone companies are organized. Each province has a phone company, offering local and long distance service, and an organization called Stentor that oversees all aspects of the services offered. 1996: Telecom Reform Act
The Telecom Reform Act of 1996 has yet to make a major impact upon '900' services, although many enabling provisions of the Telecommunications Act of 1934 have been rewritten. Both the Federal Communications Commission (FCC) and the Federal Trade Commission (FTC) have jurisdiction over '900' services. The FCC concentrates on the numbering plan, dialing characterstics, and tariffed communications services while the FTC oversees advertising and billing. The FCC has published some notices of proposed rulemaking and the FTC will do so soon. No major changes related to '900' service are expected. 1996: Billing and Collection
Billing and collection may be performed by the carrier that provides the '900' service (e.g. AT&T or MCI), by a local exchange carrier under a billing agreement with those carriers or a private company, or by a billing agent tendering the bill directly to the calling consumer. Page updated: 2/7/2005 10:57PM | Printer Friendly Version
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