Cybertelecom Federal Internet Law & Policy An Educational Project

Industry: GTE -> Genuity

Regulatory Proceedings

• In the Matter of Amendment of Section  64.702 of the Commission's Rules and  Regulations (Second Computer Inquiry),  Docket No. 20828, MO&O, 79 FCC2d 953   ¶ 6-7  (July 22, 1980) (resolving Telenet's and Tymnets's requests for partial stays of final decision)

Telenet

• In 1973, Larry Roberts leaves ARPA IPTO to become CEO of Telenet (first public commercial packet-switched network, a subsidiary of BBN). The team that builds Telenet believes that they are commercializing ARPANET (particularly after AT&T refused the offer in 1971)
• Telenet Application 1973 (Telenet filed with the FCC as a carrier, seeking permission authorization from the FCC to offer service. )

  2. Telenet plans to establish central office facilities containing Interface Message Processors (IMP) or Terminal Interface Processors (TIP) or Satellite IMPs (SIMP) to which customer's computers and terminals can be connected, and to interconnect these facilities by means of high speed transmission facilities leased from existing carriers. Telenet's application requests authority to establish its packet switching facilities initially in 18 cities. However, within four years Telenet plans to expand its network through the installation of packet switching facilities in an additional 44 cities. Appropriate applications will be filed as the network is expanded. The transmission facilities required for the initial 18 city network include i2 leased terrestrial lines operating at 50 kilobits and 100 kilobits per second and a 1.544 Megabits per second multiaccess 'broadcast' communications satellite channel serving four earth stations, Los Angeles, Dallas, Chicago and New York. The use of satellite facilities is contingent upon the anticipated availability of suitable multi-point satellite service from one or more domestic satellite carriers.

6. On the basis of the information submitted by the applicant, we find that Telenet has substantially complied with the applicable provisions of Section 214 and part 63 of our Rules and has made the requisite showing of public interest to warrant our granting Telenet's application to authorize it to lease and operate the facilities set forth in the application for the establishment of a packet switched network. We conclude that the present and future public interest, convenience and necessity will be served by a grant of the Telenet application to that extent. However, for the reasons stated in our Packet and Graphnet decisions, we shall limit our authorization herein to the provision of terminal-computer and computer-computer communications by 'packet-switching' as proposed by the applicant in the application before us.
-- Telenet Application for Authority under Sec. 214(a) to Institute and Operate a Public Packet Switched Data Communications Network in the United States, 46 FCC2d 680, File No. P-C-8750, Order (April 30, 1974)

• "In early 1973 Telenet hired Richard Hovey and Christopher Newport to join the planning team. Hovey had a back- ground in computer science and would later help define the Telenet Host Interface Specification."(Hovey would join the staff of the FCC in ~2000) [History of Telenet] Others who joined Telenet: Stu Mathison, Phil Walker, Christopher Newport, Barry Wessler (ARPANET Program Manager)
• In the summer Telenet relocates to Washington DC (home of Larry Roberts) in ordert to gain distance from BBN and to be closer to the FCC, and to be closer to the potential government user base. [History of Telenet]
• The FCC Approves of Telenet's application to provide Common Carriage service in 1974. Re Telenet Communications Corp., Memorandum, Opinion, Order and Certificate, 46 FCC 2d 680, 1974.
• Telenet files its Tariff for service on August 15, 1975, and begins to offer service.
• Tymshare began to offer public network services with excess capacity on its private network. Tymshare did not file an application or tariff with the FCC. In 1975, Telenet filed a complaint with the FCC and in 1976 the FCC ordered Tymshare to file an application to provide service with the FCC. [History of Telenet 36] Tymshare set up Tymnet in order to file the application and provide service. The two networks failed to fully interconnect, or interconnect with other commercial packet switched services.
• 1976: Telenet migrates to X.25 (first commercial network to do so). [History of Telenet 38]
• 1976: Telenet files "International Records Carrier" (IRC) Application with FCC to provide service to London. Approved by FCC 19711 [History of Telenet 39]
• 1979: GTE acquires Telenet for $59M. Mergers. Telenet was near bankruptcy at the time. [History of Telenet 40]
•  GTE/Telenet Merger Opinion, 72 FCC 2d 111 (1979) (consistent with Computer II, Telenet had to be operated as a separate subsidiary of GTE)
• Monitoring Complaince w Conditions Underlying GTE Acquisition of Telenet, 91 FCC2d 215, CC Docket No 80-197, FCC 82-352 (1982)
• 1979: USDA awards $250m contract to Telenet for data communications services. [History of Telenet 37]
• 1983: GTE acquires Sprint.
  • Telenet becomes a part of the data division of Sprint. Sprint merged Telenet with its SprintLink Internet network.
  • 1989: United Telecom gains a controlling interest in Sprint
  • 1991: United Telecom aquires Sprint. [History of Telenet 37]
• The Source in the 1980s made an arrangement with Telenet to utilize the network during off-peak hours. This took the service off of business tariffs, and changed the rate Telenet charged from $5 / hour to $0.50 / hour. The Source founder Bill von Meister would found Control Video, a precursur to AOL. [History of Telenet 37]
• See Internet History. [Roberts, Net Chronology] [Abbate p 80] [Heart p 24 1990] [History of Telenet]

Timeline

• 2000: Verizon acquires GTE. Genuity spun off
  • See Bell Atlantic / GTE Merger which led to Verizon and Genuity as a spin off
• 2003: Level3 acquires Genuity

News

Genuity Buys Time, Internet News 7/31/02

Genuity Jilted By Verizon, Internet News 7/26/02

Genuity Faces Bankruptcy as Verizon Ignores an Option, NYT 7/26/02

ISP Genuity to Cut Up to 1,200 Jobs, Wash Tech 5/3/02

Network Magazine ISP Index: Genuity Nov 2001

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