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To: Norman Klein who wrote (3430)	4/27/1998 9:36:00 PM
From: Tim McCormick	Read Replies (2) \| Respond to of 9236

FCC wants to help DSL. Federal Communications Commission Will Consider Easing Local Phone Rules (04/27/98; 6:00 p.m. ET) By Mary Mosquera, TechWeb The chairman of the Federal Communications Commission (FCC), William Kennard, said Monday that he will consider loosening some restrictions on local exchange carriers to propel investment in advanced services such as high-speed Internet access. These advanced services are the "pipelines of opportunity," Kennard said. Kennard said he would consider deregulating retail phone service under certain circumstances. For example, local carriers would have to offer such services through a subsidiary. "Advanced services would be completely separate from basic service," he added. Baby Bells would also have to unbundle and offer advanced services to competitors for resale, and allow those competitors to hook up to Baby Bell networks and customer databases. "I am not afraid of seeing wireline telephone providers have a first mover advantage, if you make the investments to get to market first -- and provided that you do not use your control of the local network to stop or hinder others from investing and trying to be the first to market," Kennard said. "I want incumbent telephone companies to play a major role in the deployment of these services." Explosive Internet growth has led to bottlenecks and slowing service, and it is widely believed advanced infrastructure, such as digital subscriber line (DSL), will dramatically speed up the flow of information. However, regulations blocking the Baby Bells from entering the long distance market also limit their participation in DSL network upgrades.