DOCUMENT RESUME ED 064 942 EM 010 063 TITLE Common Carrier Services. INSTITUTION Federal Communications Commission, Washington, D.C. REPORT NO 12-C-3-72 PUB DATE 72 NOTE 31p.; Information Bulletin EDRS PRICE MF-$0.65 HC-$3.29 bESCRIPTORS *Communications; Communication Satellites; *Federal Laws; Radio; *Telecommunication; Telephone Communications industry IDENTIFIERS common Carriers; FCC; *Federal Communications Commission ABSTRACT After outlining the Federal Communications Commission's (FkT) responsibility for regulating interstate common carrier communication (non-broadcast communication whose carriers are required by law to furnish service at reasonable charges upon request), this information bulletin reviews the history, technological development, and current capabilities and prospects of telegraph, telephone (underseas cable), telephone (radio), satellite communications, the communications satellite corporation, telegraph (ocean cable), telegraph (radio), and telephone(wire). OU0 U.S. DEPARTMENT OFHEALTH. EDUCATION & WELFARE OFFICE OF EDUCATION Common Carrier THIS DOCUMENT HASBEEN REPRO. DUCED EXACTLY ASRECEIVED FROM THE PERSON OR ORGANIZATIONORIG. INATING IT. POINTS OFVIEW OR OPIN. Services 'IONS STATED DO NOTNECESSARILY REPRESENT OFFICIAL OFFICEOF EDU. CATION POSITION OR POLICY. 12-C 3/72 The public has a vital stake in common PUBLIC carrier wire and radio communication. In INTEREST 1969 it paid over 16 billion dollars for such service over facilities representing an investment of about 55billion dollars. Though several earlier acts of Con; EARLY gress related to specific telegraph matters, FEDERAL Federal regulation of interstate electrical REGULATION communication may be said to date from pas- sage of the Post Roads Act in1866. This legislation was intended to foster the con- struction of telegraph lines by granting, among other things, rights-of-way over public lands. Federalregulation of the rates and practices ofinterstate communication carriers wasinitiated by the Mann-Elkins Act of 1910. This extended certain provi- sions of theInterstate Commerce Act to cover commoncarrier services, both wire and radio. The Communications Act of 1934 coordi- COMMUNICATIONS nated in the Federal Communications Commis- ACT OF 1934 sion regulatory powers formerly exercised by various Federal agencies and broadened con- siderably the scope of such regulation. A major purpose of this statute is "to make available, so far as possible, to all the people of the United States a rapid, effi- cient, Nation-wide, and world...wide wire and radio communicat$on service with adequate facilities at reasonable charges ." The Communications Satellite Act of 1962 COMMUNICATIONS provided for the establishment, in coopers- SATELLITE ACT tion with other countries, of ai,commercial OP 1962 communications satellite system as part of an improved global communications network. Common Carrier- 2 The United States'participation in this system is through the CommunicationsSatellite Corporation (Comsat),a private corporate entity organized under thisAct and subject to governmental regulation. Comsat's principal roles in this systemare to act as manager of the conventional U.S.communications common carriers. REGULATORY The FederalCommunications Commission RESPONSIBILITIES regulates interstateand foreign communication OF FCC such as telephone,telegraph, facsimile, telephoto and broadcastprogram transmission, whether by wireor radio, including cable and via satellites. Common carrier commufiication which is purelyintrastate in character is not, in general, subjectto Commission jurisdiction but comes under theauthority of state'utility commissions. Broadcast stationsare not deemed' "common carriers" bythe,Communications Act. In brief, a communicationscommon carrier under the law is one whoseservices areopen to public hire for handling interstate or foreigncommunications by electricalmeans. The CommunicationsAct recognized two types of suchcommon carriers those fully subject to the Act, and those only partiallyso. The latter do notengage in interstate or foreign communication except throughconnection with the wire, cable .or radiofacilities of nonaffiliated carriers. They are exempt fromcertain provisions of theAct which apply to fully subject carriers. The Act requiresthat every subjectcommon carrier furnishservice at reasonable charges upon reasonable request. No subjett carrier may construct, acquire,or operate facilities for interstateor foreign communication without Commission approval. Likewise, it cannot discontinue or curtailsuch .service without Commission approval. All charges, practices, classifications andregulations in connection with interstate andforeign communicationservice must be just and reasonable. The common carriers concerned file tariffschedules with the Commission, and thoseschedules are subjectto review and regulationby the Commission. Common Carrier- 3 The Commission hasauthority to prescribe the forms of recordsand accounts to be kept by the fully subjectcarriers. Under this authority, it has establisheduniform systems ofaccounts for them to follow, including theestablishment and maintenance oforiginal cost accounting, continuing property records,pension cost records and depreciationrecords. The Commission also requires the carriersto retain records forvary- ing periods. The Commissionalso prescribes thedeprecia- tion rates for the larger domestic telephoneand telegraph carriers to be used in determiningthe depreciation chargesto be included underoperating expenses. The larger fully-subjectcarriers file monthly and annual reports withthe Commissiongiving specified financialand operating information. The Commission regulates the interbockingof officers and directors of carriers fullysubject to the Act, it beingunlawful forany person-to hold office inmore than one suchcarrier unless authorized by theCommission. Operating under licensesgranted by the Commission, commoncarriers now use radio facilities over a substantialportion of their long.distance communicationpathways. These as well as other radiofacilities must be regulated to curb interference and avoidinefficient use of the limited frequencyspectrum. The common carrierradio licenseprivilege is limited by theAct to citizens ofthe United States. tt is dented tocorporations in whioh any officer or directoris an Alienor of which more than one.fifth of thecapital stock is owned by aliens or foreigninterests. After obtaining theapproval of theSecretary of State, the Commission can issueand, after hearing, withhold or revoke licensesto land or operate submarine cables in the UnitedStates. The Commission is charged with domesticad . ministration of wire, cable and radiocommunication provisions of treatiesand other international agreements to which theUnited States isa party. 3 Common Carrier - 4 The Communications Satellite Corporation is subject to the same regulatory controls by the Commission as are other communications common carriers, as well as to certain additional regulatory requirements. For example, the Commission must insure that there is effective competition in all procurement of equipment and services required for the satellite system by the Corporation or other common carriers and must insure that small business has an equitable opportunity to participate in such procurement. The Commission must also approve all financing by the Corporation, except for the initial issue of capital stock. The Commission must also approve the technical characteristics of the system to be used by the Corporation and authorize the construction and operation of each terminal station either by the Corporation or by other carriers, or by both, as it determines will best serve the public interest, convenience and necessity. TELEGRAPH The concept of transmitting intelligence by electricity over a wire and the principle of Invention electromagnetic telegraph was developed by Samuel F. B. Morse, an eminent portrait artist and professor at New York University. In 1835, Morse built the first telegraph instrument and tested it by stretching 1700 feet of wire around his room and sending signals from one end to the other. As with many new inventions, immediate interest and acceptance was not forthcoming. Even after a demonstration before President Martin Van Buren in 1838, it took Congress five years before they agreed to appropriate 00000 to build an experimental telegraph line from Washington to Baltimore. Common Carrier - 5 In April of 1844, members of Congress witnessed the sending and receiving of messages over the partially completed line. The Whig party held its national convention in Baltimore where Henry Clay was nominated on May 1, 1844. This news was hurried to Annapolis Junction (between Washington and Baltimore) where Morse's partner, Alfred Vail, wired it over the completed portion of the line to the capital.This was the first news dispatch carried by electric telegraph. The official opening on the completed line was held on May 24, 1844, when Morse sent his famous first message "What hath God wrought?" from the Old Supreme Couyt chamber in Washington to his partner in Baltimore. Three days later the Democratic national convention in Baltimore nominated James K. Polk, Since Van Buren seemed the likely choice, skeptics refused to believe the report telegraphed to Washington until persons arriving by train from Baltimore confirmed the story. The telegraph then became an accepted, valuable tool in communications. Morse and his associates obtained private Development funds to extend their line