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To: PaperChase who wrote (6025)11/19/1999 9:06:00 PM
From: Frank A. Coluccio  Respond to of 12823
 
Paper Chase, I don't think that there is any talk of the startups using the ILECs' DSL access muxes in the central offices at this time. Unless they are entering into resale or agency situations with the incumbents, but that's not related to this order by the FCC. However, if you use the logic that exists in the commission's order, an element is still an element. Copper loops are elements, switch ports are elements, and DSLAMs are elements, so it wouldn't be too inconsistent to find this form of use (although it couldn't logically be called sharing... or could it? What if some of the ports weren't being used, just like the spectrum on the pairs?) down the road, as well.

Come to think of it, it's pretty ballsy of the commission to make the assumption that that spectrum is actually "free," simply because it's unused at the present time. The same could be said about vacant spaces on any other form of private property, no? What they have done, effectively, is to invoke their powers of eminent domain, in some contorted way, wouldn't you say? Examine the definition of eminent domain:

"A right of a government to take private property for public use by virtue of the superior dominion of the sovereign power over all lands [fac: read, and other real properties] within its jurisdiction."

Anyway, I happen to be discussing this same topic with Kenneth De Paul over in the Coluccio thread at this time. Here's a reply I just sent to him on some related questions that we've been exploring for about a week, now:

----

from: Message 12011672

re: some reflections on twisted pairs?

Ken, one of the reasons that I am reluctant to provide you with a knee jerk on this one is because I feel that some of the ILECs may be looking at this as a mixed blessing. Indeed, it's even occurred to me that in some situations some of them may be getting exactly what they want in the way of surrogate organizations to do their dirty work for them. This would be the case in some of their underserved areas, while they improve upon their next gen loop platforms.

Some of these NGDLCs may not be ready for general consumption for another year or two, or longer. And when those deep fiber access platforms are ready? I can only speculate, but given the choice to stay with marginal services or the option to go full DSL, I think that there will be some major churning going on at that time. That is, unless there are further moves made by the FCC to include those deeper network elements in the sharing, or resale, space, by then. And this is where the separate subsidiary issue surfaces, again.

Also, I'm not so sure that some of the competitive DSL providers are too keen on the use of existing pairs which are already carrying voice in all situations. For some purposes, I think that some of them would have rather gotten very deep discounts on a loop resale basis than to ride on someone else's gravy train.

I say this because much of their anticipated incremental revenues are (were?) predicated on voice services and value-adds lopped on top of those voice services. Especially in the small business/home office, or SO-HO, space, where VoDSL products are now beginning to proliferate in the market place.

So, in one way this removes an incentive from the customer to go with a bundled offering from the startup, thus lowering their potential take down the road. Of course, neither side would likely admit to what I've stated here, but someone's projections have just been altered.

Regards, Frank Coluccio
=============

NEW EDGE NETWORKS INKS DEALS WITH THREE RBOCS

Annie Lindstrom

New Edge Networks (www.newedgenetworks.com), which is on a mission to provide small and medium businesses located outside major urban areas with broadband access in all 50 states, announced it has reached interconnection and co-location agreements with three regional telephone companies covering almost half the country.

The Vancouver, Wash.-based competitive local exchange carrier (CLEC) has signed interconnection and co-location agreements with BellSouth (www.bellsouth.com), SBC Communications (www.sbc.com) and US West (www.uswest.com) for major portions of the West, Northwest, Texas and Southeast regions of the country, covering 21 states.

New Edge Networks is in negotiations with other regional Bell operating companies (RBOC's) and independent local telephone companies to establish similar agreements covering all remaining states.

While negotiating these agreements, New Edge Networks has been identifying and applying for co-location space in more than 300 telephone company switching center locations 16 states. The CLEC has received space in more than 30 of these sites and is currently installing digital subscriber line (DSL) equipment in them, according to Dan Moffat, president, CEO and founder of New Edge.

New Edge Networks expects to receive space in more than 40 additional central offices before the end of the year, when the company plans to be offering wholesale DSL service to customers in six states. According to the CLEC, two out of 10 DSL users choose to live or operate businesses in small and medium size communities outside the major urban areas, which is where New Edge plans to offer wholesale DSL service in all 50 states within two years' time.



To: PaperChase who wrote (6025)11/20/1999 12:26:00 AM
From: Bernard Levy  Read Replies (1) | Respond to 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