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Technology Stocks : Voice-on-the-net (VON), VoIP, Internet (IP) Telephony

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To: Stephen B. Temple who wrote (2144)	12/17/1998 9:04:00 AM
From: Stephen B. Temple	of 3178

Associations Criticize FCC Actions in Promoting Competition Trade associations for the wireless and rural telecom industries faulted the FCC for policies the groups said have stymied competition in the local and wireless markets. The Cellular Telecommunications Industry Association (CTIA) and the National Telecommunications Cooperative Association (NTCA), in reports this month requested by House Commerce Committee Chairman Thomas Bliley, (R-VA), offered examples of how the FCC hurt competition. Bliley had asked several trade groups and the FCC in an October 18 letter to assess the level of competition and the performance of the regulatory agency. In its report, the FCC said competitive local exchange carrier (CLEC) revenue had doubled to almost $3 billion as incumbent revenues grew "at a much less rapid pace." CTIA President Thomas Wheeler told Bliley that Congress should "exercise active oversight" to make sure the FCC's actions encourage rather than stymie competition by using an "authorization and appropriation" process to send a clear signal. Wheeler said the Commission has failed to adapt regulations to reflect the more competitive wireless business, including local number portability and calling-party-pays. NTCA said "there are virtually no competitive providers offering local residential service in our telcos' rural markets." NTCA said the FCC has "further stymied" competition in rural areas through at least 2 policies: (1) A requirement that when rural LECs buy exchanges from incumbents, they receive only the amount of universal service support received by the LECs. (2) The cross-ownership restriction on telcos holding local multipoint distribution service licenses within their own markets. The FCC said CLEC revenue is less than 5 percent of the $100 billion local market, and one-fourth of CLEC lines are provided over their own facilities. The FCC said CLECs operated mostly in urban areas while 30 of the most rural areas have no CLECs. The FCC told Bliley that many of its efforts to open markets haven't been implemented fully and thus impediments include lack of CLEC access to incumbents' operations support systems and inability of new entrants to buy unbundled network element

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