Hi Frank,
>>How does the merger affect ATT complaints against QWST tie-ups with USWest, etc.?<<
Much will depend on (1) whether regulatory approval will be granted for a fully integrated "direct access" add-on (i.e., integrating TCI Cable Distribution in a transparent manner into T's network fabric), or whether the regs will call for a "structurally separated" and distinct local exchange-like structure, or in this case, a cable-access subsidiary structure; (2) what form of technology the new T decides to implement in the "loop," as it were; and, (3) whether this new arrangement requires T to abide by any of the pro-competitive mandates that the RBOCs themselves are subjected to, such as unbundling of the local loop (cable segment) for others to hop onto.
Of course, there's a (4), (5)... (n) to this list, but I haven't had time to think those through.
T will undoubtedly decide to use both the embedded Class 5-like end-office structures that TCI already has in place in some locations feeding its Hybrid Fiber Coax systems (although these are in limited numbers), and may very likely also be looking to leverage new techs such as voice over packet (VoIP) and voice over ATM (VTOA), where feasible over cable modems.
This sense of diversified offerings to match the local circumstances will not lend itself easily to a uniform tariffing or pricing structure, because they fall into several different regulatory models, just as QWST's two means of supplying voice services do, i.e., standard POTS and VoIP. One is highly regulated, and the other is not. This was bound to happen sooner or later, and it should serve as further evidence of how regulations lag technology by several field lengths.
On the one hand, there is the standard form of hierarchical voice switching, and on the other there is the ISP or ITSP variant, which, thus far, has been able to evade access charges and USF contributions.
This deal will probably add a lot of impetus to the issue of access charges for ITSPs and universal service fund contributions, bringing it to a head a lot faster than otherwise.
And let's not forget that when T made the complaints against the BOCs and QWST, they came out with a seemingly absurd remark that what they were doing was great, and they would do it themselves, given the right opportunity. Thus, they were hedging this aspect all along in a way, but covering their bets across the table.
Best Regards,
Frank Coluccio
(Still trying to digest many of the implications and thinking out loud...) |
