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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Big who wrote (29528)	11/18/1999 8:00:00 AM
From: 2MAR$	Read Replies (1) \| Respond to of 108040

FCC Issuing High-Speed Web Decision WASHINGTON, Nov 18, 1999 (AP Online via COMTEX) -- Consumers could one day see more competition in their choices for high-speed Internet service under action expected by federal regulators. The decision by the Federal Communications Commission could make it substantially cheaper for upstart businesses to compete with telephone companies in providing connections dozens of times faster than today's dial-up modems. The FCC is expected today to require local telephone companies to share their lines with businesses that want to offer high-speed Internet connections to customers. Consumers might benefit with more choices for services, like certain digital subscriber lines, at competitive prices. Right now, local telephone companies, like the regional Bells and GTE, can offer high-speed Internet services to subscribers on the same lines as they provide their regular voice service. But for outside businesses to come in and sell Internet connections to a consumer, they must buy a second line from the telephone company into the consumer's home. That means businesses competing with the local phone companies must spend about $20 to $23 for each second line. Newer data companies say this puts them at a significant price disadvantage and limits their ability to lure residential consumers. They say the playing field could be leveled if the FCC takes the action. ''The FCC is really going to unleash all the benefits of competition for residential users,'' said Michael Olsen, deputy general counsel of NorthPoint Communications, which provides data services mostly to businesses. The company plans to boost its marketing next year, by setting up kiosks at Radio Shack so consumers can sample the high-speed connections. ''I think this is a sea change in people's perception,'' said Jeff Blumenfeld, general counsel for Rhythms NetConnections Inc., another data services company. He said sharing lines will enable consumers to start receiving service in a matter of days rather than waiting weeks for a second line installation. Dhruv Khanna, general counsel of Covad Communications Inc., said his company hopes to be able to offer high-speed connections at less than $40 a month to consumers. ''This is a start of all of that good stuff, and the start of our campaign for the consumer in a more meaningful way,'' he said. But the regional Bells say they have serious concerns about the impact on consumer service of carrying data and voice traffic -- from different providers -- on the same copper wire. For example, if a consumer has a problem placing a call, companies will have to determine which service is responsible. ''We are concerned about the impact on the consumer who is currently purchasing voice service from us that could have two providers over the same line,'' said Susanne Guyer, assistant vice president of federal regulatory affairs for Bell Atlantic. Robert Blau, BellSouth's vice president for executive and regulatory affairs, stressed that making sure basic voice service stays reliable will be an important consideration for the FCC and companies, as they add these applications to the phone line. ''There are just going to have to be rules of the road that people can follow,'' Blau said. Industry officials expect the FCC to implement this requirement within six months. Yet to be determined are pricing arrangements. The commission is expected to set some interim pricing guidelines, with states hammering out later how much Internet businesses must pay the local telephone companies to split the line. Copyright 1999 Associated Press, All rights reserved. -0- By KALPANA SRINIVASAN APO Priority=r APO Category=1700 * end of story *