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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: PaperChase who wrote (6025)11/20/1999 12:26:00 AM
From: Bernard Levy  Read Replies (1) of 12823
 
Hi Paper Chase:

Let me defend the FCC order as follows. There is
general consensus among economists that where a
monopoly exists, this monopoly must be subject to
government regulation in terms of rate setting, etc..

Where does a monopoly exist in the phone system?
Only in the copper access to houses, which is controlled
by the ILECs. To deal with many companies wanting
to access these copper lines, we had determined some
time back that the fairest way was to handle the issue
exactly in the same manner as for power deregulation:
by separating the transport function from the actual
power buying and selling.

If you look at the FCC decision, this is exactly what we
have here: the DSL companies will need to pay for
the transport function of the copper lines. However,
in terms of content (spectrum use) all providers
are allowed equal access: the ILECs for phone service,
and the DSL providers for data access. The DSL providers
are treated on par as the ISP unit of the ILECs.

I would say the FCC got it exactly right. Now, it
needs to apply exactly the same principle to cable,
i.e., cable must be unbundled in the same way.

Superficially, this looks like socialism, but a careful
analysis really indicates that this is a highly
pro-competitive, pro-capitalist decision.

Best regards,

Bernard Levy
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