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To: faqsnlojiks who wrote (65134)	12/18/2003 7:17:23 PM
From: Keith Fauci	Respond to of 77400

Understood. Thank you

To: faqsnlojiks who wrote (65134)	12/22/2003 12:55:16 AM
From: tech101	Respond to of 77400

DSL Prime News: The Inside Source The Bells may have finally gone too far this time. Do they know it? by Dave Burstein DSL Prime [December 19, 2003] "Deregulate our provision of broadband, and we will invest." —U.S. telcos to Kevin Martin. "Invest and you will be free." —replies Kevin Martin "Free up more of our cash to return directly to shareholders" — Ed Whitacre, SBC CEO answers. Whitacre's cut investment so much even Wall Street criticizes him. The Bells will face the wrath of an FCC commissioner scorned unless they deliver a heck of a lot more broadband and fiber in 2004. Kevin Martin is looking for results, not more rhetoric. Martin won't be satisfied by telcos finally delivering in 2004 what they already promised for 2002. Bell Canada is going to 90 percent coverage, most Europeans heading over 95 percent. Anything less than that from the Bells leaves America second rate. Japan will soon hit a million lines of fiber to the home. Mike Powell this week must deal with his father's health. and we all hope for a quick recovery after his operation for prostate cancer. The prognosis is good; Jennie's father nows speaks on behalf of the Cancer Society as a survivor of over a decade. But when his focus returns, Powell will have to think through SBC's remarkable $10 billion "capital excess," being used to buy back stock and raise dividends. Powell put his career on the line to kill UNE-P, after being told by CEO Ed Whitacre it was destroying his company. SBC President Bill Daley all but implied bankruptcy was imminent. Six months later, UNE-P continues, and SBC announces an enormous surplus. Whitacre and Daley apparently misspoke. As SBC cuts investment over 50 percent, outside the U.S., telcos continue investing. China Telecom ordered 2 million DSL lines from Huawei and 1 million more from Alcatel Shanghai Bell for prompt delivery. China is pacing for well over 10 million lines in 2004, unless the economy falls. KPN in Holland just announced 97 percent DSL coverage, and Ireland is promising every town over 1,500. Martin to Bells: Deliver broadband or shut up The FCC this year gave the Bells even more than they asked for. "New wires, new rules" was Tom Tauke's formulation. Instead, Tauke got the much broader "New wires, no rules" and competition for data killed on a quarter of the "old wires" (packet-fed remotes) as well. In return, none of the Bells is delivering wider DSL than they announced in 2000, and only Verizon is even delivering (quarter-speed) fiber. Martin, understandably, doesn't want the U.S. to become an Internet backwater. "For years incumbents have been saying 'Deregulate our provision of broadband, and we will invest.' But now that broadband deployment is deregulated, they are saying 'Deregulate our provision of our historically monopoly service basic phone service and we will invest in broadband.' They essentially are saying, 'Free us, and we will invest.' We have responded, 'Invest, and you will be free.' As the Commission faces regulatory decisions in the coming year, I will try to view them through the following prism. Are the incumbents seeking the opportunity to invest in their network architecture, provide new services, and receive the benefits of that new investment? If so, I think the Commission should be encouraging." Amazing how the papers missed this story. Martin has the controlling vote on a host of relevant issues coming up, including wholesale phone rates and indirectly retail ones. Copyright 2003 Dave Burstein. The DSL Prime Newsletter is reprinted with permission. "The power of the printing press belongs solely to those who own the presses" —A.J. Leibling isp-planet.com