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Technology Stocks : Voice-on-the-net (VON), VoIP, Internet (IP) Telephony -- Ignore unavailable to you. Want to Upgrade?

To: Stephen B. Temple who wrote (1306)	9/18/1998 5:46:00 AM
From: Stephen B. Temple	Respond to of 3178

Reciprocal compensation should be abolished for calls to Internet service providers because it reduces incentive for competitive LECs<> September 18, 1998 COMMUNICATIONS DAILY via NewsEdge Corporation : Reciprocal compensation should be abolished for calls to Internet service providers because it reduces incentive for competitive LECs (CLECs) to upgrade to high-speed network, Covad Communications Chmn. Chuck McMinn said Tues. in speech to Economic Strategy Institute in Washington. "I think reciprocal compensation is a boondoggle," he said, and incumbent LECs (ILECs) have "legitimate point." McMinn also said he fully supported recent FCC notice of proposed rulemaking on Telecom Act Sec. 706 to allow ILECs to enter data services market through separate subsidiary. If ILECs are "forced to deal with their own bureaucracy, they'll simplify, streamline and eliminate" process for obtaining capacity on digital subscriber line (DSL) networks, he said. Covad is CLEC providing DSL service in San Francisco area with upcoming service planned for L.A., N.Y. McMinn said DSL is "fundamentally an interstate service" and encouraged FCC to "exercise their authority" to develop set of consistent, national standards. He said local market still is heavily regulated -- even for CLECs -- and until this year Covad employed more lawyers than marketers.