Re: Telecoms Sue Over High-Speed Links from Faulhabe a discussion

[David Farber <dave () farber net>]

________________________________________
From: Bruce Kushnick [bruce () newnetworks com]
Sent: Wednesday, July 09, 2008 4:17 AM
To: David Farber
Subject: RE: [IP] Telecoms Sue Over High-Speed Links from Faulhabe a discussion

________________________________________
Gerry Faulhaber write:
UNEs also require the resale of the local loop at a regulated price (a model
which has been spectacularly unsuccessful, BTW).  But all this is under the
umbrella of common carriage, and it does not extend to sale of access to the
backbone.

The UNE-p regime worked too well, and thus the Bells blocked it and then
made it unprofitable.

The number of CLEC Lines is clear: there was a major increase to use UNE-P
and offer competitive services, Then there was a massive drop off, when the
laws were changed--

Let us also remember, that the Bells promised to compete with each other---
SBC in 30 cities outside of its own regimes -- using UNE-P. Not only did it
never fulfill the merger commitments but it also help to kill off UNE=P so
that AT&T and MCI would eventually be eliminated as a competitor.
http://www.newnetworks.com/partonefcccompetition.htm


> LinkLine, an ISP, alleged that AT&T provided it with access to its Internet
> backbone network at very high wholesale rates, while charging retail rates
> (in competition with LinkLine) that were low.  LinkLine claimed the margin
> between AT& T's wholesale and retail rates (which LinkLine had to match)
> was too small for them to make a profit, and that they were the victim of a
?"vertical price squeeze".

Trinko was about a harm an AT&T customer incurred because of bad, documented
treatment by the incumbent in giving UNE-p services to AT&T.  And it was
settled, not based on retail prices but on the fact that Trinko didn't have
standing.

The issue in linkline is  --did the pricing structure screw the ISP... And
the bottom line is that the practice of predatory pricing was well
documented, and that the FCC refused to examine the issues.

Gerry Faulhaber would like to forget that the Telecom Act was designed to
open the PSTN -- That's Public Switched Telephone Networks, and that
included opening the networks to ISPs and CLECs.

There was even many special discussions of this as IN EVERY MERGER THE
RIGHTS OF THE ISP WAS ADDED TO THE DEAL. --- Again, read the mergers of
SBC-Ameritech or Verizon-GTE and there's plenty of proof that these
companies had obligations as they are incumbents and controllers of critical
infrastructure.

Back in 1999 we wrote a complaint to the state and FCC over this very issue:

http://www.newnetworks.com/baadslscrewisp.htm
We also wrote a separate complaint outlining that the ISPs were getting
substandard customer services, which also helped to drive thousands of
companies out of business. http://www.newnetworks.com/paycompensation.htm

The FCC in fact, play corporate favoritism time after time in their entire
triennial review, which essentially removed all of the opening clauses of
the Telecom Act. The violated the basic tenets of Section 257 of the Act,
which called for competition of small businesses.


> We may wisht the law were different (and of course IANAL), but this seems
> to be the way it is.  The essential facilities doctrine in antitrust law
> died off some years ago, so I wouldn't depend upon its early return.

Actually, it is clear that the pendulum swung too far in the form of
corporate controls of the networks, and under a new regime, the past sins
will come back to haunt us. America is 15th in the world in broadband
because we allowed private companies to take controls over essential
infrastructure through a federal agency and the court rewriting the telecom
act. Verizon is now offering an "information service', and yet is being
funded through the utility...






-------------------------------------------
Archives: https://www.listbox.com/member/archive/247/=now
RSS Feed: https://www.listbox.com/member/archive/rss/247/
Powered by Listbox: http://www.listbox.com