Computer Firms and RBOCs Write FCC with High Speed Internet Access Proposals

(December 8, 1998)  Several leading computer companies and most of the regional Bell operating companies jointly wrote to the Federal Communications Commission on Monday, December 7, with a set of proposals for facilitating the provision of high speed Internet access via ADSL technology.

The problem with providing high speed Internet access to most users lies in the low bandwidth of local telephone lines.  The letter to the FCC offers as a solution the use of ADSL technology, and proposes that to facilitate its widespread deployment, the incumbent local phone companies should open their central offices to the competitive local phone companies, and that ISPs be allowed access to broadband networks on a non-discriminatory basis.  In return, it is proposed that the FCC lessen certain regulatory restraints.

The letter to the FCC stated that there is a problem in local loop in providing high speed Internet access.  The letter stated:

... the capabilities of the nation's telecommunications networks -- particularly our local networks -- are not keeping pace with user needs for faster, more reliable access to the Internet.  Unless steps are taken to rectify this problem, growth of the Internet, and the wealth of new service applications that the Internet promises to create will be needlessly foreclosed."

The letter included an attachment listing "Ten Principles for the Promotion of Widespread Deployment of Advanced Services."  The list includes provisions for the promotion of competition in the local exchange data communications market, including:

• The local telephone companies would increase access to their central offices.  For example: "On a per request basis, ILECs will make common cage collocation available on a timely basis at pro rata costs in all central offices where space permits."
• The ISPs would have access to broadband networks on a non-discriminatory basis.   "ILECs offering advanced telecommunications services on an integrated or separate affiliate basis must not discriminate between affiliated and nonaffiliated ISPs."

In return, the "Ten Principles" calls on the FCC to lessen regulation.   In particular, it provides that "The FCC shall grant liberal waivers of requests for changes in interLATA boundaries for data services ..."

The computer companies which joined in the letter are Compaq, Gateway, Intel, and Microsoft.   The RBOC signatories are BellSouth, Bell Atlantic, SBC, and U.S. West.  GTE, which is the local telephone company in many areas, and in the process of merging with SBC, also signed.  Finally, the Business Software Alliance and the Information Technology Industry Council signed the letter.

No competitive local exchange carriers (CLECs) signed.  Nor did interexchange carriers (IXCs) AT&T, MCI Worldcom, or Sprint join in the letter.  AT&T is in the process of acquiring cable company TCI, and hopes to become a leading provider of Internet access via competing cable technology.  Also, RBOC Ameritech did not join in the letter.  Leading computer company Dell did not sign either.

The letter was addressed to the Federal Communications Commission (FCC), which is charged under Section 706 of the Telecommunications Act of the 1996 with encouraging,

"the deployment on a reasonable and timely basis of advanced telecommunications capability to all Americans (including, in particular, elementary and secondary schools and classrooms) by utilizing, in a manner consistent with the public interest, convenience, and necessity, price cap regulation, regulatory forbearance, measures that promote competition in the local telecommunications market, or other regulating methods that remove barriers to infrastructure investment."

"Today's announcement marks a significant win for consumers," said Rod Schrock, a SVP at Compaq in a press release. "Our customers tell us they are clamoring for faster Internet connections. This proposal will ultimately give consumers the fastest Internet experience possible by accelerating deployment of high-speed ADSL Internet access."

"This agreement represents another significant step towards Intel's goal of widespread deployment of affordable broadband services," said Les Vadasz, SVP for Corporate Business Development at Intel. "Recently, a cross industry effort successfully defined and delivered a global, low cost, consumer-friendly ADSL standard, known as G.Lite (G.992.2). Today's agreement on these principles should provide a catalyst for the adoption of regulatory policies that will both foster the efforts of the new competitors and strengthen the local telephone companies' investment incentives to offer G.Lite and other broadband services."

FCC Chairman William Kennard issued the following response on Monday:

"While I have not seen the specific proposal from the companies, I applaud any efforts to give all Americans greater access to modern telecommunications services as inexpensively as possible. That's what the Communications Act and our rules are all about. Once the plan is filed with us, we will examine it fully to make sure it serves the public and is consistent with the law as established by Congress."