SBC gets FCC approval on DSL project
(UPDATE: Adds details throughout)
SAN ANTONIO, Sept. 8 (Reuters) - SBC Communications Inc. (NYSE:SBC - news), the No. 2 U.S. local phone carrier, said Friday U.S. regulators approved a plan that would enable SBC to extend high-speed Internet access to most of its urban customers.
The Federal Communications Commission agreed to modify conditions attached to SBC's merger with Ameritech Corp. in 1999 to allow Project Pronto to go forward, a $6 billion initiative intended to make high-speed DSL service available to 80 percent of the company's customers by the end of 2002.
``We expect consumers will benefit, not only from a more rapid deployment of advanced services, but from the increased choices that stem from the competitive safeguards contained in SBC's proposal,'' the FCC said in its order.
Currently, DSL, or digital subscriber line technology, is limited to homes and businesses located less than 18,000 feet from a SBC central office facility equipped with with DSL. Project Pronto would activate 18,000 ``neighborhood gateways'' that would eliminate most distance limitations.
``Unlike cable modem service, our lines are open to competitors so our deployment won't just benefit SBC and our customers, it will benefit other DSL providers as well,'' Mike Turner, president of SBC's broadband services, said in a statement.
In receiving the FCC's approval in October 1999 to acquire Ameritech, SBC agreed to set up a subsidiary that would provide advanced services to avoid discriminating against other providers of high-speed access.
One month later, SBC unveiled its Project Pronto in which it said it would make available DSL technology to about 77 million consumers over three years and asked the FCC to allow the primary company to own equipment used to provide advanced services.
The order conditions the modification on SBC making additional space available in its remote terminals for
competitors, must maintain its copper plant which will allow competing local carriers to provide other types of DSL service and work with those competitors and manufacturers to develop solutions to problems with access to remote terminals.
In granting the waiver, the FCC said it wanted to ``emphasize the narrow scope of this decision'' in light of
concerns by some who complained the project would result in unlawful and anti-competitive behaviour.
But, that did not satisfy some competitors.
``I just, quite frankly, nor do any of us, want them to continue to control the network, especially the last mile,'' said Randall Lowe, chief legal officer at Prism Communications Services Inc., a unit of Comdisco Inc. (NYSE:CDO - news), which offers integrated communication services through the same wires that carry traditional telephone services.
In addition, the order did not address timing and procedures to gain access to and use SBC's infrastructure which will need to be addressed to determine how the FCC order will be implemented, said Renee Crittendon, deputy chief counsel of telecommunications at Prism.
SBC shares closed up $2-9/16 at $45-5/16 on Nasdaq. |
