To: Jenna who wrote (31123 ) 4/6/1999 2:08:00 AM From: Susan G Respond to of 120523
COVD News New bill could level DSL playing field By Corey Grice Staff Writer, CNET News.com April 5, 1999, 6:15 p.m. PT Pacific Bell and other local phone companies in California could be forced to share their wires with upstart data firms that want to offer high-speed data services under anew proposed state law. The law, if passed, would require the California Public Utilities Commission to set pricing and other guidelines for how competing local phone providers can offer DSL, or digital subscriber line services, over the same wire the local phone company uses to deliver voice service. The market for DSL has heated up as providers make new marketing deals and cut prices on the high-speed data transmission technology. Local phone companies, like Pacific Bell in California, offer the service over a single twisted pair of copper wires. Data-focused competitive local exchange carriers (CLECs) such as Covad Communications and NorthPoint Communications want to get into this lucrative market, but argue that local companies have an unfair cost advantage when it comes to existing networks. The CLECs currently must lease a separate line from local firms to provide DSL services. If a customer wants to order the high-speed service from a provider other than their local phone company, they need to pay for the added line. This inflates the cost of the service, and leaves the CLECs at a competitive disadvantage, they say. "In the absence of line-sharing, customers who want to choose a competitive DSL service must pay for a second line to their homes," Michael Olsen, NorthPoint's deputy general counsel, wrote in a letter supporting the bill. "The cost of the second line exceeds $20 per month, artificially inflates the cost of competitive offerings, and effectively excludes competitors from the residential DSL marketplace," he added.