To: Sosmartinov who wrote (71324 ) 11/14/1999 12:48:00 AM From: SMALL FRY Read Replies (1) | Respond to of 120523
COVD - here's another one... www2.marketwatch.com infoworld.com FCC shows mixed approach to Internet access By Paul Krill and Jennifer Jones InfoWorld Electric Posted at 3:04 PM PT, Nov 12, 1999 The Federal Communications Commission (FCC) later this month will likely force local phone companies to share their lines with emerging Digital Subscriber Line (DSL) companies - a move that sharply contrasts with the FCC's hands-off approach to regulating cable-based Internet access. Just weeks before FCC's Common Carrier Bureau will pry open local telephone lines, the agency's Cable Services bureau chief vowed that the FCC - at least for now - will not tinker with the cable-access market, DSL's rival industry. Despite the FCC's mixed approach to two leading kinds of remote access, which are quickly replacing traditional dial-up, both industries are rapidly maturing. The FCC's Bureau Chief Deborah Lathen said multiple methods of broadband access, such as cable modems, DSL, and wireless, need to compete unfettered by government intervention to enable expanded access and lower prices. "We very much believe that we have to let the marketplace work," Lathen said in a speech this week. Although Lathen included DSL in that list, another FCC bureau is regulating DSL expressly to spur competition. Specifically, the agency is widely expected on Nov. 18 to require incumbent local exchange carriers (ILECs) - mostly the regional Bell companies - to share lines with rival DSL companies. But while the FCC makes a decisive move on DSL, it is not yet weighing in on the "open-access" cable debate. The FCC spelled out its reluctance to get in the cable fray in an October report. "It is not clear whether current systems will maintain their same positions in the broadband industry, or whether new, and as yet undisclosed systems, will dominate the market," the report said. However, Internet service providers such as America Online, MindSpring, and others, charge that the closed cable system limits their ability to reach users. AT&T, which recently acquired cable giant Telecommunications Inc. (TCI), for now exclusively provides Excite@Home to its cable subscribers. AT&T recently signaled that it may open its infrastructure voluntarily. M. Patrick Witherington Jr., government affairs vice president at AT&T, said the company may expand ISP access to its cable systems once the Excite@Home arrangement expires in 2002. Just last month, FCC officials said cable access dwarfed DSL connections to U.S. homes. But that could change with the DSL line-sharing mandate, said Jonathan Askin, vice president of the Association for Local Telecommunications Services, which represents competitive local exchange carriers (CLECs). "The main thing this will do is change the price points and make it more feasible for new competitors to enter the market," Askin said. The ILECs naturally oppose linesharing. In comments filed to the FCC, the U.S. Telephone Association (USTA) officials argued that line-sharing raises the issues of responsibility for line maintenance. USTA officials also argued that line-sharing would dampen ILECs' mood to invest in and pursue new technology. SF