Why are there different service providers for local and long distance services?
In 1984, AT&T divested several local companies because of deregulation. The divestiture settlement prohibits the Regional Bell Operating Companies (RBOC’s) from selling long distance services outside their region or “LATA”. The FCC did this to encourage and ensure that local competition could exist. There have been recent changes in the industry, which allow local providers, such as Clear Rate Communications, to provide both local and long distance telephone service to customers.
