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To: Frank A. Coluccio who wrote (1784)	8/3/1998 1:22:00 PM
From: Kenneth E. Phillipps	Read Replies (2) \| Respond to of 12823

From USA Today - "Key FCC Rulings on tap for Bells" Key FCC rulings on tap for Bells Federal regulators are likely to oppose a request by regional Bell phone companies to offer long-distance data services but take other steps that would help spur the Bells' rollout of high-speed Internet lines. The Federal Communications Commission is expected Thursday to recommend that regional Bells be allowed to set prices for advanced services without seeking FCC approval, provided conditions are met. The FCC also would not force them to sell the offerings wholesale to rivals. The regional Bells say they are unlikely to make the hefty investments needed to bring speedy Internet services to consumers if they must also offer them to competitors at wholesale prices. Since 1996, the regional Bells have had to sell their regular telephone service to interested rivals or let the rivals connect to their networks. The FCC is inclined to waive that requirement for high-speed data since the regional Bells do not monopolize that exploding, crowded market. In return, a Bell would have to create a subsidiary to offer the data services. The subsidiary would hook up to the parent company's network on the same terms as competitors. MCI's Jamie Depeau says the plan would help Bells "build a new digital monopoly." Bell Atlantic, Ameritech and US West also want to carry long-distance Internet traffic. The Bells are barred from long-distance until they open their local markets to rivals. But they say that hurts them in the competitive data market. But FCC Chairman William Kennard says, "That's a pretty tough case to make." Critics worry that Bells would lose the incentive to open local markets and eventually could shift voice calls to the data networks. The FCC is willing to consider letting a Bell carry long-distance data to an "Internet access point" only if its region has no access point. By Paul Davidson, USA TODAY