September 2005
volume ix, number 9
 

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The FCC voted to reclassify DSL service as an information service in early August.  The reclassification places DSL in the same category as cable modem services, freeing phone companies from regulations that would require them to share their infrastructure with Internet service providers. 

Phone companies are happy with the ruling saying that it will allow them to focus their resources on improving and developing their broadband services.  However, some FCC commissioners are skeptical and say they will be watching to see if that is really the case. 

As a result of the recent ruling both phone companies and cable companies are exempt from “common carrier” rules for their broadband services. The FCC is allowing rural carriers to choose whether or not they want to retain their common carrier status, allowing them to recover costs under rate of return regulation, including the cost of building broadband networks.  If they decide to continue as common carriers and provide open access to their networks they will continue to receive compensation for access and termination services from the NECA pool. 

A 1-year transitional period will be enforced where phone companies will be required to provide network access to ISPs; DSL providers will be required to comply with CALEA standards for wiretapping, and phone companies offering DSL will be required to fund the USF. 

This new ruling will impact Independent ISPs significantly since they rely on other companies’ infrastructures to provide their service.  How significant the impact will be is yet to be determined.  ISPs like Earthlink are already testing other means to provide their services such as electrical power lines and wireless technology like Wi-Fi and WiMax may be viable alternatives in the near future.


Oklahoma Corporation Commission Approves Order to Increase Competition
In late July, the Oklahoma Corporation Commission (OCC) approved an order that will help to increase telecommunication competition in the state.  The order changes some of the rules under which SBC-Oklahoma is currently operating. In accordance with the order, SBC obtains pricing flexibility, allowing the company to better compete within the state. As a result, SBC pledges to bring DSL to customers in rural areas. 

FCC Approves Transfer of Licenses from Nextel to Sprint
The FCC approved applications filed in conjunction with the proposed Sprint Nextel merger in early August.  With the approval all licenses and authorizations held by Nextel will be transferred to Sprint.

The Commission concluded that the acquisition of Nextel’s licenses by Sprint is in the public’s best interest, citing enhanced service quality and broader deployment of advanced wireless service as some of the benefits.  Along with the above the FCC also stated the following:

  • The FCC believes this transaction is unlikely to result in collusive, anti-competitive behavior or create unilateral market power on the part of the merged entity.

  • The FCC finds that there are no local markets where the post-merger competitive environment would require a divesture of spectrum, networks, or customers

  • The FCC analyzed the impact of the merger on roaming and imposed a condition specifying that Sprint Nextel may not prevent its subscribers from reaching another carrier and completing calls via manual roaming, unless specifically requested to do so by a subscriber. 

  • As a condition to its approval to the merger, the FCC is requiring that Sprint Nextel fulfill its voluntary commitment to meet certain milestones for offering service in 2.5 GHz band, unless circumstances beyond its control prevent the merged entity from reaching those milestones.  

For a complete read on the details of the approved applications please visit www.fcc.gov

Pre-merger, Sprint is the third largest provider of commercial mobile telephone service based on subscribership, while Nextel is the fifth largest.

MCI Increases Roll-Out of Wholesale VoIP
Although distribution was originally scheduled for later this year, MCI has now announced the immediate availability of its wholesale VoIP suite, stating that the acceleration in roll-out was due to the growing demand for VoIP enablement services.  Services include Carrier IP Termination and SIP Gateway Service.  

The Carrier IP Termination is designed for consumers who own media gateway equipment and wish to obtain the cost advantages of originating IP traffic and terminating that traffic over a fully integrated global network.  Carrier IP Termination is currently available throughout the U.S. while the SIP Gateway is available to more than 54 percent of American business and residential customers. 

Las Vegas Receives Verizon VoiceWing for $19.95/month
VoiceWing, a low-cost, feature rich internet based telephone service makes its way to Las Vegas with two calling plans.  VoiceWing Unlimited offers unlimited local and domestic long distance for $29.95 for Verizon DSL subscribers and $34.95 for other DSL or cable users.  VoiceWing 500 offers subscribers 500 minutes of outbound local and domestic long distance calling for $19.95 a month. 

Verizon Entry Level DSL for $14.95/ month
Priced lower than many dial up services, Verizon’s new high-speed DSL allows qualified customers to receive a maximum connection speed of up to 768 kbps downstream and 128 kbps upstream for $14.95 a month with an annual service agreement.  As a bonus, customers will receive all the benefits enjoyed by Verizon’s higher speed consumer DSL services.

Additionally, Verizon recently joined with Yahoo! and launched Verizon Yahoo! for DSL service.  Customers will receive over $200 in premium Yahoo! features at no additional cost.  Some features included are premium e-mail, and 100 MB of storage.

BellSouth Launches New Broadband Wireless WiMax Services
BellSouth will be the first of the Bells to use WiMax to provide wireless broadband service. WiMax is a radio frequency technology that promises to deliver two-way Internet access at speeds up to 75 mbps.

Customers will be able to choose from two packages.  FastAccess Internet Service Lite, a basic service, offers up to 384 kbps downloads and 128 kbps uploads for $29.95; FastAccess Internet Service Ultra offers up to 1.5 mbps downloads and 256 kbps uploads for $39.95.  Subscribers must also purchase a modem from BellSouth for $99.99. 

Initial deployment of the WiMax broadband service is scheduled for Athens, GA -- specifically college students at the University of Georgia.  Further deployment is set for Florida, targeting communities that are too far away from the central office to obtain DSL services.

CALEA extends to VoIP
The FCC ruled to expand its wiretapping laws to wireline broadband providers and Internet phone companies in early August.  The order gives the providers 18 months to comply with the new network wiretap accessibility rules of CALEA.  With the recent interest and increase in subscribership for VoIP, the Department of Justice along with the FBI cited national security concerns as a reason for requiring VoIP providers to comply with CALEA regulations.

FCC chairman, Kevin Martin said, ‘Although I believe that new technologies and services should operate free of economic regulation, I also believe law enforcement agencies must have the ability to conduct lawful electronic surveillance over these new technologies.”

While CALEA was never intended for information services, the recent ruling re-interprets CALEA to include broadband and VoIP. Commissioner Kathleen Abernathy said, further congressional input to clarify the FCC’s decision is necessary.”  It is without a doubt that further litigation will come of this decision.

Telecoms File Appeals for Meeting e911 Requirements by End of Year
While Internet phone companies are working toward implementing the e911 service requirements, they feel that the deadline given by the FCC is unreasonable.  Nuvio, a Kansas based VoIP provider, filed with the US Court of Appeals for the District of Columbia regarding the ruling and its requirement that VoIP providers disconnect any customer who has not acknowledged warnings regarding e911 shortcomings by the end of August. In addition to the appeal, many other providers, including Nextel are expected to file for waivers.

According to the regulations set in May, “Internet phone operators must be able to steer 911 calls to the geographically appropriate emergency call center.  In addition, the calls themselves must be accompanied by the originating address and phone number.” 

Nuvio argues that the deadline set by the FCC is unrealistic and “the process of making new contracts with vendors and providing the necessary technology for compliance will take longer than 120 days.”  Nextel states that while 70 percent of its customers’ phones will be in compliance by the deadline it could take up to two years or more to meet the standards set by the FCC. 

It is expected that a multitude of waivers will be filed as the deadline draws near, especially by small cellular providers who will have trouble meeting the FCC mandate.

Texas Approves TV and Phone Service Bill
SBC Communications and Verizon Communications received a major victory when the Texas House passed legislation to create greater competition for the cable industry and ultimately transfer authority for TV services from cities to state regulators.  The two phone company giants supported the legislation because it eases their entry into the Internet-based digital TV industry, which is planned for later this year. 

Cable companies and city officials said, the ruling “gives phone companies and unfair advantage, strips consumer protections, and wrests control and revenue from cities.”  However, Republican Representative, Phil King, says, “This bill allows more companies to provide more service to more consumers.” 

Perhaps some of the bigger issues created by the passing of this bill are:

  • The legislation allows the phone giants to receive statewide franchises for their services instead of going through lengthy negotiations with individual cities, as the cable industry has had to do for decades.

  • The legislation also allows phone companies to raise rates in the largest communities.

  • It also allows electric utilities to deliver broadband Internet service over their power lines, a technology that's intended to bring high-speed Internet access to rural areas.

  • In the video provisions, the bill allows phone companies to receive statewide franchises for TV services within a month, instead of as long as 18 months that they'd need at the city level.

  • Cities would maintain their existing franchises with cable operators. Phone companies would operate under the same franchise-fee structure until the local cable franchises expire.

 

For more information on this bill or to read the article in its entirety please visit http://www.dallasnews.com/sharedcontent/dws/bus/stories/071805dnbustelecom.6c10182.html

 

 

   

 

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