To: hal jordan who wrote (10539 ) 5/5/1998 5:51:00 PM From: Kevin Thompson Respond to of 21342
If this is old news, click on::: FCC may lighten phone rules By Reuters Special to CNET NEWS.COM April 27, 1998, 2:05 p.m. PT WASHINGTON--The top U.S. telephone regulator said today he might favor lifting some restrictions on local telephone companies to encourage widespread availability of high-speed Internet connections. Federal Communications Commission Chairman William Kennard said he would favor lifting certain key limits on carriers, but only if the companies truly shared access with competitors to the switches and wires leading directly into consumer homes. "I want to make sure that current regulation does not prevent the deployment of facilities that otherwise would be built," Kennard said at a luncheon sponsored by the U.S. Telephone Association. "I want incumbent telephone companies to play a major role in the deployment of these services." Locked in a high-stakes race with the cable television industry, the five Bell companies that dominate the residential phone market have announced plans to offer super-fast Internet connections over ordinary copper telephone wires using a technology called digital subscriber line, or DSL. But the 1996 Telecommunications Act generally prohibits the Bells from offering interstate services nationwide, including many Internet and data services. And the act requires the companies to lease services and facilities to competitors at a discount. Bell Atlantic, Ameritech, and US West Communications have asked the FCC to waive those restrictions on advanced data networks and high-speed DSL links to homes. The filings rely on Section 706 of the Telecom Act, which allows the FCC to waive rules to promote advanced technologies. Kennard said if data services were offered through a separate subsidiary of a Bell and the company was also sharing access to its "essential facilities" into homes, he would favor deregulation. "If it's done through a separate subsidiary, we could under the right circumstances allow some retail deregulation," he told reporters after the speech. "The trick here is making sure that we can create a separation between the basic service and the advanced service." Such a proposal would require the approval of a majority of the five-member commission, Kennard noted. That might not be a difficult hurdle because the panel's two Republican members have generally expressed support for deregulation to encourage innovation.