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Bell Profits


One very important notation needs to be made regarding the ancillary services that were now "unregulated" and the fact that the bells were allowed to fully profit on them from this latest agreement.  These services included things such as touch tone, call waiting, speed dialing, etc.

These services have all been paid for and are 100% profit for the bells,  making the amount of revenue that was coming in from this avenue enormous.   You can also see the growth and the increasing profits in the chart below. 


Summary of RBOC Revenues, Expenses and Profits, 1995-1996

(in the millions)


    All Seven RBOCs        1995                1996              CHANGE

       Operating revenues      $92,537           $99,337             8%

        Operating expenses     $71,469           $73,946             3%

            Cash                       $21,068           $25,973           23%

            Net Income             $  7,881           $13,700           74%      

   % of cash to revenues            23%                 26%

And staffing was cut...?