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Non-Tech : Amati investors -- Ignore unavailable to you. Want to Upgrade?

To: MangoBoy who wrote (30380)	1/27/1998 12:40:00 PM
From: NYBellBoy	Read Replies (1) \| Respond to of 31386

Amati High Speed Fans- delayed christmas present :) BellBoy Bell Atlantic Seeks Clearance For New High-Speed Network By STEPHANIE N. MEHTA Staff Reporter of THE WALL STREET JOURNAL Bell Atlantic Corp. is expected to file a petition with the Federal Communications Commission Tuesday asking for regulatory relief for a high-speed network it aims to build. The Baby Bell said it wants to build an Internet "backbone" to relieve data-traffic congestion in its territory, which stretches from Maine to Virginia. The carrier said it plans to ask the FCC to exempt that data network from the same pricing rules and regulations that govern the Bell's voice network. "The company is interested in making a substantial infrastructure investment," said Tom Tauke, Bell Atlantic's senior vice president for government relations. "But we see barriers in the regulatory arena." Those barriers include a restriction that prohibits Bell companies from carrying calls between certain local-area boundaries within their regions. Bell Atlantic said it cannot operate an Internet backbone without being able to carry traffic across its region, since neither the consumer nor the carrier necessarily know where digital traffic may terminate. A section of the Telecommunications Act of 1996 allows the FCC to waive certain regulations in order to promote the development of high-speed networks. In filing the petition, Bell Atlantic would be the first company to seek regulatory relief under that section of the act, the company said. Bell Atlantic also is expected to ask the FCC to exempt its high-speed network from rules that require the carrier to resell parts of its network to rivals at wholesale prices. The carrier argued it would be unfair for Bell Atlantic to "incur the risk" of building such a network, only to have to share the rewards with would-be rivals. At the heart of Bell Atlantic's planned petition is an argument that many of the rules governing voice traffic are out of date when it comes to data. "We don't think that we should extend old voice-network regulation to the high-speed data network," Mr. Tauke said. He added that the carrier isn't seeking relief from regulation of its voice network. The company said relaxed regulations also could speed plans to deploy so-called digital subscriber line technology throughout its network, if its petition is granted. The technology would deliver superfast data access to the home via traditional copper wires. (Monday, a consortium of computer-industry giants and phone companies formally endorsed a version of digital subscriber line technology. See article.) Regardless of whether it gets relief, Bell Atlantic needs to make a strong entry into the data business in order to serve corporations and high-end residential customers -- the very customers that rivals are likely to raid when local markets are open to widespread competition. A successful deployment of high-speed data access could help ward off competitors, said Simon Reeves, a senior analyst with Decision Resources Inc. in Waltham, Mass. "Bell Atlantic's strength lies with the low-end residential customer," Mr. Reeves said. "Offering high-speed Internet access helps improve customer satisfaction with the high end of the residential sector." So far, the company has done little to court data-hungry customers. Its nascent Internet-access service, Bell Atlantic.net, has some 100,000 residential subscribers and about 1,000 business customers. While some Baby Bells are deploying DSL technology, albeit in selected markets, Bell Atlantic is still testing the service in Virginia. Bell Atlantic's proposal may stir controversy among consumer groups that feel that the powerful Bell monopolies don't deserve any regulatory relief. Still, the carrier's petition is likely to argue that its plan is good for consumers. The Internet-backbone business has been consolidating in recent years thanks to acquisitions by companies such as WorldCom Inc. and GTE Corp. Bell Atlantic said its Internet-backbone proposal would bring new competition to the market, possibly bringing down prices. A successful deployment of high-speed data access could help ward off competitors, said Simon Reeves, a senior analyst with Decision Resources Inc. in Waltham, Mass. "Bell Atlantic's strength lies with the low-end residential customer," Mr. Reeves said. "Offering high-speed Internet access helps improve customer satisfaction with the high end of the residential sector."