New Carriers Get Blocked From Buildings
(05/13/99, 4:23 p.m. ET)
By Mary Mosquera, TechWeb
WASHINGTON, D.C.-- One-third of American households may not see the benefits of telecommunications choice because they live or work in an apartment or office building, competitive carriers said Thursday.
Competitive local exchanges told the House Commerce Committee it is difficult to get access to customers who live or work in buildings with multiple units, which accounts for 27 percent of U.S. households. Property owners said they should not be forced to allow any or all telecom providers access to their buildings.
"Building owners are becoming the gatekeeper to whether competitors can provide services to consumers," John Windhausen Jr., president of the Association for Local Telecommunications Services, or ALTS, told lawmakers.
The concentration of so many consumers in one location makes the economies of scale to attract competitors. "For this reason, multi-tenant buildings are likely to be the first place residential and commercial facilities-based local exchange competition occurs on a significant scale," Windhausen said.
But building owners or managers can impede competition by exacting high charges per customer to enter the building or by awarding an exclusive contract to one telecom provider. Windhausen urged Congress establish a framework for access to tenants.
The Federal Communications Commission has not ruled on the problem because its jurisdiction may not apply to constitutionally protected private property rights, said Tom Sugrue, chief of the FCC's wireless bureau. He asked Congress for guidance on the communications regulator's authority because any rule would probably end up in the courts.
Wireless fiber provider Winstar holds 4,800 building access agreements, more than any other telecom provider, said William Rouhana, Winstar CEO. The chief impediment for his company is the length of time it takes to negotiate each building access right.
"We are gaining access one negotiated right at a time. But each one takes up to 12 months. At that rate, it will take decades to access commercial buildings," he said. Only Connecticut and Texas have laws requiring landlords to give telecom providers nondiscriminatory access.
However, property owners said Congress does not need to enter the fray. Apartment and office buildings know they need to offer a choice of telecom services and providers to attract tenants, said Brent Bitz, executive vice president of Charles E. Smith Commercial Reality and a representative of the Building Owners and Managers Association.
Property owners complain that new providers pick the upscale, high-density opportunities, but feel no obligation to serve smaller, less attractive buildings. Bitz said new entrants cannot have it both ways.
"They cannot cherry pick the best opportunities for business and then unilaterally ignore the rest of the thousands of properties across the nation," he said. |
