FCC to dress 'naked DSL'

[David Farber <dave () farber net>]

------ Forwarded Message
From: Dewayne Hendricks <dewayne () warpspeed com>
Reply-To: <dewayne () warpspeed com>
Date: Mon, 21 Mar 2005 02:19:45 -0800
To: Dewayne-Net Technology List <dewayne-net () warpspeed com>
Subject: [Dewayne-Net] Source: FCC to dress 'naked DSL'

  Source: FCC to dress 'naked DSL'
  By Ben Charny
<http://news.com.com/Source+FCC+to+dress+naked+DSL/2100-1037_3
-5627726.html>

  Story last modified Sun Mar 20 22:53:00 PST 2005

U.S. regulators are expected to suspend state public utility rules that
force BellSouth to let customers buy its high-speed Internet service
without having to also sign up for its local phone offering.

As early as Monday, said a source familiar with the situation, the
Federal Communications Commission could suspend public utility
commission regulations in Florida, Georgia, Kentucky, California and
Louisiana that forced Bellsouth to sell DSL, or digital subscriber
line, service separate from its local phone service. In the past, the
two services had been inextricably linked.

  An FCC decision would send a strong message to other state utility
commissions that might be considering a similar rule, the source said.

  The expected FCC decision would have a profound effect on the few
thousand people in the four states who now get "naked DSL" from
Bellsouth. It would also affect the millions of homeowners who would go
with a separate DSL offering given the chance, insiders believe. The
possible precedent for the Bells--Bellsouth and the nation's three
other top phone and DSL providers--could even affect cable operators
that sell broadband and telephony on fiber-optic networks, services
that are much faster than the Bells' DSL.

  Among other things, Bellsouth and its supporters have warned of the
possibility of slightly different naked DSL rules in all 50 states,
which would slow broadband growth in the United States and undermine
Bellsouth's incentive to invest in the service and the underlying
network. Bellsouth also points out in FCC filings that some states have
opposed naked DSL rules.

  Proponents of the state rule believe naked DSL keeps the Bells in
check, competition thriving and broadband prices under control.

  Naked DSL "protects the ability of consumers to make choices about
their local service provider," Alabama utility regulators wrote to the
FCC, in support of the state rules. "Contrary to BellSouth's claim, the
state commission orders are protecting their local customers' rights to
choice among local voice carriers."

  A Bellsouth representative said any decision would affect the 8,000
people who have purchased naked DSL from Bellsouth since 2002, when the
first of the naked DSL rules went into place. The representative
offered no further comment on any possible decision.

  Of the four Bells, only Verizon Communications has said in the past
that it intends to voluntarily sell a DSL-only service, but its
self-imposed deadline has passed and there's still no offering. A
Verizon representative had no comment Friday. In mid-2004, SBC
Communications had been ordered to offer naked DSL by California
utility regulators, but that order appears in doubt as well.

  In its ruling, the FCC is expected to claim sole jurisdiction over
DSL, leaving state public utility commissions to fill the role of
consumer advocate, the source said. The FCC is also expected to rule
that Bellsouth isn't required to provide its competitors with wholesale
or retail broadband services on a standalone basis, or as part of phone
service the companies buy using FCC rules known as unbundled network
elements, UNE. Under the UNE rules, The FCC, and not Bellsouth, sets
the rates in order to keep the four Bells' networks open to
competitors.

[snip]


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