Bells thank young Commissioner Martin by threatening not to build out advanced broadband networks (aint it grand?)

[Dave Farber <dave () farber net>]

------ Forwarded Message
From: Robert Lee <robertslee () comcast net>
Date: Fri, 21 Feb 2003 16:23:09 -0500
To: robertslee () comcast net
Subject: Bells thank young Commissioner Martin by threatening not to build
out advanced broadband networks (aint it grand?)

In a column I wrote for ePrairie I finished by saying:

The Bells are only saying they have no incentive to build out fiber while
they are forced to share their networks. They are studiously not saying they
will build out fiber to the home if you give them back ³their² networks.
That is terribly important to understand. The Bells know you are hearing
something they are not saying.

Down the road, they will give you the 14 reasons it makes no sense to build
out fiber. For now, as they convince the FCC to give them back the wireline
mode monopoly and make inroads on the satellite mode, they simply want you
to know they have no incentive.

http://www.eprairie.com/news/viewnews.asp?newsletterID=4466

 

 

 

 

In the beginning of this column by Mark Wigfield he says:

 

=DJ FCC's Martin Disappointed By Reaction To Broadband Dereg

 

      By Mark Wigfield  Of DOW JONES NEWSWIRES       WASHINGTON (Dow
Jones)--Federal Communications Commission member Kevin Martin said Friday he
was disappointed by the Baby Bell telephone companies' reaction to a
controversial change in competition policy he shepherded through the
commission Thursday.

 

    Following Thursday's vote, the Bells said they would likely not increase
their investment in broadband even though the agency deregulated those
services. 

 

    In an intense lobbying campaign by the Bells for broadband deregulation,
"A lot of emphasis was placed on regulatory relief for new investment,"
Martin said in response to questions following a speech at Georgetown
University. "I'm still hopeful it will occur."

 

    The FCC adopted new rules that would largely eliminate the Bells'
obligation to lease at a discount advanced broadband networks. But it
preserved for the time being competition rules governing discount leases for
residential telephone service, a win for the local service arms of AT&T
Corp. (T) and WorldCom Inc. (WCOEQ) and smaller upstarts like Z-Tel
Technologies Inc. (ZTEL).

 

    The competition rules enable competitors to enter local markets easily
by leasing a full "platform" of network elements called "UNE-P." The
platform is capable of providing service to competitors' customers at the
flick of a switch. 

 

    The Bells complained that the leases aren't warranted and sap revenues,
making it difficult to invest in advanced networks. They lobbied hard to
eliminate them in the FCC proceeding, and FCC Chairman Michael Powell had
proposed a plan that would have phased out UNE-P relatively quickly.

 

    But Powell was foiled by a plan devised by fellow Republican Martin that
would only allow the phase-out of UNE-P three years after a state review
showed it isn't necessary to competition. Martin's plan prevailed in a rare
3-2 vote that went against the chairman.

 

    "The positives are there on broadband, but they don't counter the
negatives" of the local phone competition policy, said BellSouth Corp. (BLS)
lobbyist Bob Blau in an interview. The phone lines and revenues lost to
UNE-P "has a decidedly negative effect on broadband deployment," he said.

 

===

 

RL: The fact is the Bells won¹t build out fiber to the home unless you give
them conjugal rights to your wife, and not even then.

 

Robert Lee

land 610-642-9705

cell  610-724-1288

fax   610-642-0675

 


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