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To: Vladimir Zelener who wrote (12827)	8/26/1998 5:56:00 PM
From: Trey McAtee	Respond to of 21342

vladimir-- ok, the ILECs are going to have to allow colocation anyway. it doesnt matter. now, they get to use a seperate subsidiary and not share the equipment. as i said previously, its the best either ILECs or CLECs could have expected. basically what the FCC has enabled the ILECs to do is shift everything over to the CLEC and hollow out the ILEC division. the CLECs will have to pay the same price. look at it this way... ILEC spends three billion on equipment they have to allow a CLEC to use. the CLEC comes in and pays a minimum fee (will likely be above wholesale so the ILEC can continue to expand the loop) and get to use not only whats there now, but also the new DSL equipment. NOW, the way the FCC has set things up, they dont have to let the CLECs use any of the new equipment. as for what the, for example, BEL CLEC has to pay for the BEL ILEC...what does it matter? the money has to come back to the parent anyway<G>. ..In this case the created subsidiary CLEC will operate at great loss, while mama RBOC will collect the profits. This will block any independent CLEC and LD and ISP from getting into same kind of arrangement. I am not sure that RBOCs will be able to get this schem though though. I am sure LD and ISPs and independent CLECs will chalange such an arragement in Federal court, don't you??<< i dont think the RBOC will do that, it could set them up for more problems down the road. and as far as suing, i doubt the CLEC will do it. suing will create a risk that they could lose what they have just gained. look, i have looked at this so many different ways, and this strategy came out last fall about the time of the GTE deal. it is the most rational solution to the problem, and i think everyone involved realizes this. good luck to all, trey