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To: Steven Bowen who wrote (7570)8/6/1998 1:38:00 PM
From: joel chess  Read Replies (1) | Respond to of 12468
 
FCC Proposes Speedier Internet Connections for Homes

By JEANNINE AVERSA
.c The Associated Press

WASHINGTON (August 5) - Internet users frustrated by agonizingly
long waits to visit their favorite Web sites could get some
under a government proposal to encourage high-speed data connections
for homes.

The Federal Communications Commission was expected today to propose
giving incentives to local phone companies to encourage them to
build the expensive infrastructure needed for such connections.
The final plan could be adopted by year's end.

''Most Americans ... are getting very used to high speed Internet
access in the office. They go home and it's the World Wide Wait
and it's very frustrating,'' said FCC Chairman Bill Kennard.
''We want to bring that same high bandwidth capacity into every
home in America.''

As Internet use soars, so does congestion on the telecommunications
networks that people use to tap into the Internet. A voice phone
call lasts, on average, three or four minutes. When people go
online, they average 28 minutes.

Local, long-distance, satellite, cable and wireless companies are
in a race to create lucrative high-speed connections to homes.
The FCC will be exploring ways to give other companies incentives
to build fast connections into the home, too.

Bell Atlantic, for instance, plans to offer in some markets this
fall a connection that is 250 times faster than is offered by a
typical desktop computer modem. Consumers would be charged an
installation fee and would have to buy a special modem.
Customers also would pay a monthly fee for various packages of
service.

But regional telephone companies Bell Atlantic, US West, Ameritech
and SBC say current regulations discourage them from building such
networks inside their own local phone regions.

They want the FCC to use its powers under a 1996 law to remove
regulatory barriers hindering development of these advanced networks.

The FCC is expected to propose giving the Bell companies and other
major local phone providers, such as GTE, some regulatory relief in
the delivery of high-speed data services but with certain conditions.

Under the proposal, the local companies would not have to discount
new high-speed services to rivals as they are already required to do
with other services. They would, however, still be required to lease
these services to competitors, said FCC officials, who spoke on
condition of anonymity.

And the phone companies would be free to set consumer prices for
interstate data services without first filing price
with the FCC. State authorities, however, would decide whether to
regulate consumer prices of data services offered in their states.

In exchange for these changes, the local companies would have to
lease crucial pieces of their networks so other companies could
provide competing high-speed data services, the officials said.

The local companies also would have to provide their data services
through a separate affiliate. The FCC believes this is crucial to
preventing the Bells and other entrenched local phone companies from
using their monopoly power to block rivals from offering competing
services.

The affiliated company would be required to provide the same services
at the same terms to rivals as it receives from its parent.

The FCC is not expected to grant the Bells' request to let them
directly offer data services across local calling boundaries, which
would constitute a ''long-distance'' service, something they are
currently forbidden from offering.

In other action, the FCC is expected to:

-Beef up enforcement of rules requiring cable programmers to make
shows available to satellite TV companies and other cable competitors.

-Propose giving U.S. phone companies more flexibility in cutting
deals with foreign carriers to terminate calls in countries that
don't have much competition. Regulators hope this will make it
cheaper for U.S. customers to call most Latin American countries.

- Adopt rules for public safety groups to eventually get more slices
of the public airwaves to coordinate communications, and to provide
services such as wireless transmission of fingerprints and mug shots
to and from police cars.

AP-NY-08-06-98 0230EDT
Copyright 1998 The Associated Press. The information contained in the
AP news report may not be published, broadcast, rewritten or
otherwise distributed without the prior written authority of
The Associated Press. All active hyperlinks have been inserted
by AOL.