Press Wireless 21 F.C.C. 311 (1956). The FCC denies the request
by another carrier to initiate a service that would partially
compete with already extant service offerings by Western Union.
Western Union's monopoly position is found justified at that
time. The Commission stated:

.Although Western Union is not entitled as a matter
of law to the exclusive grant of pick-up and delivery of
international traffic in the hinterland, the obligation
it has to provide such service at all times, whether
traffic be heavy or light, carries with it the privilege
of continuing to provide service and reap the revenues
of a heavy traffic volume unless it is unable to do
so in a manner which will serve the public interest, or
some other carrier will provide service which is so
superior as to support a filing that a public interest
would be served by a grant of its application.

Western Union enters the exchange (Telex) telegraphy business, which will soon begin subsidizing other Western Union operations-including PMS.

Above 890 Decision. Microwave technology has partially eroded former economies of scale in the communications industry.

In Docket 11866, the FCC clears the way for the private operation of point-to-point, long-distance microwave facilities.

Western Union begins a major moderization effort centering upon its new computer switching facility.

Western Union begins its Mailgram service.

This service is
a means of communications by which customers input messages
to Western Union which are then transmitted via WU facilities
to a post office of the USPS for inclusion as preferential
mail in the next day's postal delivery. Within a decade this
service will constitute half of all public messages.

Western Union acquires TWX from AT&T.

Specialized Common Carrier Decision Docket 18920. This decision established the current FCC policy in favor of competitive entry into the specialized commmunications field. This decision leads to private line services such as MCI and Southern Pacific.

Free Direct Access 40 FCC 2d 1082 (1972). WU believes that
the FCC interpretation of Section 222 in this case represents
a bar to the delivery of the hinterland portion of any inter-
national message by any entity other than Western Union.

1973

1974

1976

January 1977

June 1977

Western Union inagurates its three Central Telephone Bureaus,
which provide natural access to Western Union services through
In-Wats telephone service. Today almost three-fourth's of all
public messages are requested in this manner.

Graphnet Systems, Inc., 44 FCC 2d 800 (1974). Graphnet author-
ized to perform specialized "facsimile" transmissions, in which
it "photographs: messages by an electronic scanning process,
sends the signals over inter-city transmission facilities, and
delivers hard copy images of the original messages to facsimile
terminals at the destination point."

Resale and Shared Use Decision, Docket 20097.

FCC authorized Graphnet and Telenet to offer international communications services. International record carriers (IRCs) oppose. Permission not yet granted by overseas administrators.

Graphnet contracts with ITT World Communications and RCA Global
Communications (Globcom) and FCC approves implementation of
outbound portion of the agreements in tariff--but not inbound.
Graphnet files a Section 214 application for authority to provide
certain communications services between the gateway locations of
the U.S. IRCS and Graphnet subscribers in the hinterland of the
U.S. Approval of such authority poses a direct threat to Western
Union's monopoly concerning public message services. FCC rules that
Graphnet tariff does not extend to inbound delivery of international
communications. Graphnet files petition for reconsideration.

September 1977 Several filings by Graphnet regarding proposed tariff services. Files amendment to its tariff in order to clarify that authorizations granted re ITT Worldcom and Globcom extend to any IRCs with which they enter agreements. Files a supplement to its petition for reconsideration of the FCC order which rejected tariff revision intended to implement that portion of intercarrier agreement with ITT Worldcom providing for handling of inbound international messages. Graphnet says its supplemental pleading prompted by Court of Appeals Execunet decision and Globcom's "free direct access" pleading. Logic: Graphnet believes limitation to one-way service weakens its competitive position and makes it nearly impossible to compete with Western Union, which offers both inbound and outbound service to its customers.

Western Union files another opposition pleading.

Logic: Western Union (WU) believes result would be to "exacerbate
the diversion of WU's landline haul revenues that is already occurring
by virtue of the implementation of the Graphnet-ITT agreement.

October 1977

The U.S. Court of Appeals for the District of Columbia denies
a motion of Graphnet for summary reversal of the FCC's order
granting the application of ITT Domestic Transmission Systems,
Inc., to provide a domestic data service. Court grants a FCC
motion to remand the matter for futher proceedings.

January 1978 TRT Telecommunications Corporation says Graphnet's application to provide services between gateway locations of the U.S. IRCs and hinterland locations "should be conditioned so as to require that all outbound traffic transferred by it to the IRCS be distributed in accordance with the international formula." Logic: "The ultimate consequence of approving the present Graphnet scheme could be to undermine the international formula provisions that have been so carefully worked out by the Commission within literally the past few weeks and to substitute for them an arrangement which would make the distribution of outbound traffic a function of factors having no relationship whatever to the public interest."

March 1978

WU asks FCC to deny Graphnet ́s amended application to provide
for direct delivery to any subscriber terminal and for mail or
telephone delivery to the general public.

Logic: Public convenience does not require the service; diversion
of significant volumes of traffic would have an adverse effect on
WU and its users; and proposed service would violate the Commission's
free direct access policy. Also, WU said, amended application would
undermine the purposes of the new "international formula."

In a related filing, WU says that if Graphnet's application is
granted and company becomes a public message carier, "there would
be no basis on imposing on Western Union, but not Graphnet, the
special requirements of regulations" such as specified in Parts
63 and 64 of the regualtions. (Part 63 deals with the requirement
that WU secure FCC approval before replacing public offices with
agencies or reducing the hours or quality of services at public
offices. Part 64 requires WU to conduct speed of service studies
of all types of messages, including those delivered by telephone,
messenger, telefax, TWX, telex and over-the-counter.

FCC denies RCA Globcom's petition for reconsideration of its order allowing Graphnet and Telenet to offer international communications services.

FCC orders hearings on WU's proposal to earn by 1981 a 28 per cent rate of return on investment in its TWX and Telex message communications services. (TWX/Telex subsidizes PMS.)

FCC endorses staff decision to let Graphnet provide private-line
(PL) facsimile service to 11 European countries, and for Telenet to
provide PL data transmission to Britain. Assume foreign approvals
may be difficult to obtain.

June 1978

1978

January 1979

Graphnet asks the U.S. Court of Appeals to review the FCC's decision
rejecting certain Graphnet tariff revisions which would have permitted
the company to delivery to its subscribers overseas-originated
message communications, and denying Graphnet's petition for recon-
sideration of the June 1977 FCC order which rejected tariff change
proposing to offer the same services at no additional charge to the
sender or recipient.

At Commission meeting, FCC members suggest less detailed telegraph
regulation. At approval of routine rule change involving speed
of service reports, Chairman Ferris asks, "Why are we involved in
this?"

Western Union Monopoly Inquiry FCC 78-96. The FCC issues a M.0.&O.
initiating an inquiry into the regulatory policies concerning the
provision of domestic public message services by entities other
than Western Union Telegraph Company. Hinchman notes that public
message service has changed considerably in its character since
the grant of monopoly in 1943 and that message volume has decreased
considerably. Technological innovation may even make the traditional
market obsolete. Inquiry subjects to include: alternative ways
to provide PMTS; how widespread is demand; PMS' future; essentia-
bility of PMS to public in light of other alternatives such as
Mailgram. Scope of inquiry to be as narrow as possible in order
to avoid delay of Graphnet decision. In addition, Commission
says it plans to also review its "free direct access" policy.

ITT and Globcom consolidate briefs regarding FCC decision to allow Graphnet and Telenet to offer international communications services. They say that FCC decision permits Graphnet, Telenet "to compete with the existing international carriers, without subjecting these new competitors to same competitive restrictions it previously planned on the IRCS."

Western Union Information Systems withdraws from the commercial
market.

Logic: Less dependence on Bell. As a result of move, TWX will
transfer from Bell facilities to Western Union; provision made
for growth of TWX network; and introduction of higher speed
exchange services made possible.

Deadline for comments in FCC's telegraph inquiry postponed to
June 15 at request of Western Union.

The USPS begins experiments in electronic message services
which would supplant public message services of Western
Union.

Commission announces a formal inquiry proceeding in connection
with ECOM service.