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From...
Group wants to bring cheaper DSL to homes
The High Speed Access Coalition wants regulatory bodies to force the Baby Bells to share the "last mile" of phone line.
December 11, 1998
Web posted at: 11:00 AM EST
by Mike Hogan
(IDG) -- You could enjoy fast digital subscriber line service to the Internet at half the cost charged by your local phone company if telecommunications regulatory agencies broke up the Baby Bell monopoly, a new group of Internet service providers said Wednesday.
The newest acronym in the alphabet soup of telecommunications is HiSAC, for the High Speed Access Coalition, which announced Wednesday that, just as long-distance voice service providers do, HiSAC's member companies should be permitted to sell data-only DSL service over the same line used for voice calls in the home.
Under current telecommunication regulations, says the group's executive director David Wilson, new DSL companies have to combine voice and data services on the line or sell an additional twisted-pair phone line, making their service cost-prohibitive for most consumers. Only corporations with high-traffic needs have been able to afford the additional phone bill so far, says Wilson.
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"This is about monopoly power over the 'last mile of copper' for home access to high-speed Internet service," Wilson said. "Consumers have their choice of several long-distance carriers and mobile phone services, but they still have only one choice when it comes to DSL service. The FCC and California PUC must avoid a rush to judgment until consumers have had a fair opportunity to make their opinions heard."
HiSAC hopes that public pressure will induce the California Public Utilities Commission to delay a decision, scheduled for December 17, on a petition to use that last mile by a small DSL service provider named PDO Communications. The group wants the issue held over for public comment. They also are lobbying the Federal Communications Commission to tell state utility commissions that the states have jurisdiction over this issue.
No free rides
"We believe that PDO is asking for a free ride on our network," says Dan Jacobsen, executive director in Pacific Bell's Regulatory Department. "PDO wants to use the data spectrum for free without having responsibility for the entire facility. "This would give any [new] carrier a huge cost advantage and make it hard for facility-based carriers [like Pacific Bell] to compete. No one is going to want to invest in a facility and let competitors ride on it for free."
Pacific Bell is also concerned about its ability to guarantee the integrity of voice service if it has to allow data-only carriers to run its phone lines through their equipment and "strip out" voice, adds Jacobsen.
Residential DSL service promises Internet access speeds 10 to 20 times faster than 56-kbps access. Since mid-September, Pacific Bell has been providing various flavors of DSL connection to about 220 California communities for a $299 installation fee and monthly charges starting at $59, in addition to voice service charges.
HiSAC believes its member companies could offer faster service for $49 a month initially and, once there are a number of providers, for half the price the Regional Bell Operating Companies will charge if their monopolies are sustained.
Lower prices through competition
"There are two analogies that come immediately to mind," said Wilson. "One is what happened to long-distance rates and the other is what happened to mobile telephone rates as additional systems have been brought online. It is safe to say that long-distance and mobile telephone rates have declined by at least half over the past 10 years since those markets were opened up."
Jacobsen points out that HiSAC members can already resell Pacific Bell DSL service; they just have to pay for both the voice and data.
"We have a capital investment and we should be able to manage the integrity of that service," he concludes.
Consumer correspondence on this issue involving Application Number 98-06-052 can be addressed to:
Richard Bilas, President California Public Utilities Commission 505 Van Ness Ave. San Francisco, CA 94102