To: Bill Ulrich who wrote (12100 ) 1/28/1998 9:07:00 AM From: Moonray Respond to of 22053
3Com (COMS.O) CEO says to meet with head of FCC WASHINGTON, Jan 27 (Reuters) - 3Com Corp CEO Eric Benhamou said he would meet later on Tuesday with Federal Communications Commission chairman William Kennard to discuss regulatory issues holding up the development of high-tech networks. Benhamou said that, at the first meeting between the two, he would urge the FCC to accelerate the pace of telephone deregulation. In a speech at the ComNet conference here, Benhamou predicted a wave of convergence that would merge telephone calls with data and video traffic on a single network like the Internet. The most significant challenge holding up convergence was the "lengthy transition leading to a fully deregulated telecom industry," he said. "It's been two years now since the Telecom Act of 1996," Benhamou said. "It's fair to say that we're still a long ways away from having meaningful levels of competition in local telephone service." The networking executive's view could bolster the arguments of Bell Atlantic (BEL.N), which on Tuesday asked the FCC to exempt a new high-speed data network from certain phone regulations. Bell Atlantic president Ivan Seidenberg was scheduled to address the conference on Wednesday. Benhamou said current regulations gave the regional Bell companies little incentive to build such high-speed networks, because the FCC could force the companies to lease the networks to competitors at low prices. "The incentives to 'do the right things' from the market's point of view may not be strong enough with the current configuration of protagonists," Benhamou said. Among other issues, Bell Atlantic asked the FCC to exempt the new network from rules requiring the company to sell services to competitors at wholesale prices. Benhamou said he would also discuss with Kennard the harm arising from disputes between the FCC and state regulators. The Supreme Court said on Monday it would review a lower court ruling that gave state regulators, not the FCC, authority to set prices for local telephone service. But a decision from the high court is unlikely for a year or more, leaving substantial uncertainty in the market. ((Washington newsroom, +1 202 898-8310, fax +1 202 898-8383, washington.newsroom@reuters.com)) REUTERS Copyright 1997, Reuters News Service. All rights reserved. Replication or redistribution of Reuter's content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. nasdaq! o~~~ O