An assortment of telecom reform bills has been presented as part of a planned update to the 1996 telecommunications law. New legislation introduced by Senators Jim DeMint, John Ensign, John McCain, and others are sure to be the subject of many conversations in the coming year. Senator Jim DeMint, (R-SC), a member of the Senate Commerce, Science and Transportation Committee, introduced a 50-Page bill entitled the Digital Age Communications Act that aspires to treat all phone systems the same whether they be Internet, landline, cable or wireless. The bill proposes a market-oriented, competition-based regulatory approach. It also addresses the Universal Service Fund by including provisions that would cap the fund and make all service providers contribute equally. The bill evoked a mixed response. BellSouth issued a statement of support from Herschel L. Abbott, Vice President of Government Affairs saying, "We are particularly pleased with the bill's focus on further clarifying the role that state commissions should play in regulating the industry." But the US Telecom Association had a different view. Ed Merlis, Senior Vice-President, Government and Regulatory Affairs, said "While the DeMint bill is intended to go even further to maximize consumer choice, we are gravely concerned by its universal service provisions that would reduce and cap the fund and abdicate responsibility for this important program to the states. We also plan to work closely with Senator DeMint to ensure that other provisions in the bill do not inadvertently broaden the FCC's powers in today's highly competitive communications market." While there may be disagreement about sections of the proposed legislation, there is consensus that updated legislation that reflects the changing communications industry is essential to improve competition and capital investment. The bill was introduced on December 14, 2005, has no co-sponsors, and has been referred to committee. Another bill offered earlier in the year was greeted with much optimism. Incumbent telephone companies and others commended the Broadbrand Investment and Consumer Choice Act of 2005 introduced by Senator John Ensign (R-Nev.), Chairman of the Commerce Committee's Technology, Innovation and Competitiveness Subcommittee and co-sponsored by Senator John McCain (R-Ariz.). When submitted in late July, 2005 SBC Senior Vice President-Federal Relations, Tim McKone said the legislation "catches up with today's marketplace realities, so that consumers can fully enjoy the benefits of meaningful competitive choice in all communications services, including video." The measure calls for eliminating state and local franchise requirements for all video providers including telephone companies. Existing cable franchises would cease to exist upon enactment of the bill. Broadband services would be freed from federal and state regulation at both the wholesale and retail levels. Broadband providers and facilities-based providers would be required to establish "commercial arrangements" to set interconnection fees and the FCC would intervene only if the parties couldn't reach an agreement. The proposed legislation does not address matters pertaining to the Universal Service Fund. While the Ensign proposal received a good reception, not everyone was thrilled. Pulver.com's General Counsel Jonathan Askin predicted, "We'll be stuck with another five years of implementing it and 15 years of litigation." One of Askin's concerns is the ‘social obligations' that would be imposed on standalone VoIP providers. Those potential social obligations could be wire tapping accommodations, handicap access and Universal Service Fund obligations. The bill was introduced on July 27, 2005 and has been referred to committee. These are just two bills of many to be considered. Each with a long legislative track ahead. There will be debate, there will be compromise, there will be revisions...but will there actually be approved telecommunication reform legislation? Some envision another year passing without approved legislation. Others portend that Congress must act. Either way, 2006 promises to be yet another fascinating year! top  -News and Stuff

Verizon/MCI Merger Wins Needed Regulatory Approval
Washington Utilities and Transportation Commission, the last state needed to approve the Verizon/MCI merger, gave its approval on December 23, 2005. Recently Ohio, Pennsylvania and New Jersey voted in favor of the merger. Most states authorized the deal with few conditions other than the ones set by the FCC and Justice Department. The Commissions generally agreed that the transaction is in the public's best interest and promotes competition in the industry. The deal is expected to close by early January.

 

Sprint Nextel to Acquire Two Wireless Affiliates
Sprint Nextel announced plans to acquire Velocita Wireless, a leading provider of wireless data connectivity solutions and services, through a stock purchase agreement. The acquisition will allow Sprint Nextel to utilize a portion of Velocita's spectrum network to supplement its coverage for customers using the iDENA national network. Velocita Wireless currently serves about 400,000 business and governmental customers. Sprint Nextel will continue to honor existing Velocita customer contracts after the transaction closes. 

Sprint Nextel also announced the purchase of Enterprise Communications Partnership for approximately $98 million and will pay an additional $2 million to acquire licenses for C Block wireless spectrum from an affiliate of Enterprise Communications. Sprint Nextel will pick up more than 52,000 PCS wireless users as direct subscribers and extend the company's direct service territory to an additional 825,000 people.

Both acquisitions are subject to regulatory approvals and are expected to close during the first half of 2006.

 

Alltel Becomes A Pure Wireless Company
In a strategic plan to grow its domestic wireless business, Alltel announced it will spin off its wireline business and merge those operations with Valor Communications Group in a transaction worth about $9.1 billion based on Valor's closing stock price as of December 8. The spin off combination creates a new wireline competitor focused on the rural US. The wireline company will have 3.4 million access lines in 16 states.

The deal will reposition Alltel as a pure wireless service provider with roughly 11 million wireless customers in 34 states. Alltel acquired Western Wireless and certain assets from Cingular Wireless and Public Service Cellular this year, and agreed last month to buy Midwest Wireless Holdings. "This transaction creates new growth opportunities for both the wireless and wireline businesses as separate entities," said Scott Ford, Alltel President and Chief Executive Officer. "Each business will have sufficient scale to compete on its own and will be appropriately capitalized to take advantage of strategic, operational and financial opportunities."

The deal with Valor is expected to close by the middle of next year pending Valor shareholder and regulatory approval.

 

Avaya Rolls Out VPNremote
Avaya introduced its newest software, VPNremote at the Interop conference in New York in mid-December. VPNremote embeds virtual private network remote capabilities into Avaya's family of IP telephones. This latest technology makes a worker's phone number as portable as a laptop. Load the VPNremote software into Avaya's line of 4600 IP Telephones and telecommuters are given access to an always on business-class IP telephone.

The latest VPNremote software for Avaya's 4600 IP Telephones is based on Avaya's Communication Manager software platform. It features short extension dialing, transfer, conferencing and Web-based access to information and corporate-wide broadcasts via a screen display.

 

Comcast Offers Digital Voice Phone Service
Comcast Corporation announced its intent to roll out Internet based phone service in Northern Virginia and suburban Maryland. Comcast is just one of the many cable companies trying to entice consumers with their bundle offerings of phone, cable and high-speed-internet service. Comcast Digital Voice calls will travel primarily over its own network before typically connecting to local phone lines that run into homes. Comcast should be able to ensure better service quality since calls will be moving across it own network.

The company will sell its Comcast Digital Voice service for $39.95 a month to customers who buy it with cable and high-speed Internet service, $44.95 for those who buy it with either cable or Internet, and $54.95 as a stand-alone service. The service, which allows users to hook a regular telephone into Comcast's cable network, offers unlimited local and domestic long-distance calling and a dozen features including voice mail and caller ID.

 

IP Centrex Shows Rapid Growth
According to a recent In-Stat survey, small and medium-sized business will drive the IP Centrex and hosted PBX market to $1.3 billion by 2009. Shipments for IP PBX lines will exceed traditional PBX for the first time this year, according to an earlier report from In-Stat in August. The total PBX market will grow by a compound annual growth rate of 6.6% through 2009. In addition, server-based IP PBX shipments will grow from 9.5 million lines to 28.1 million, representing over 91% of total PBX shipments.

While growth is significant in this market, in contrast, In-Stat recently issued a report showing that VoIP services will grow by $1 billion per year in Asia alone through 2009 to more than $10 billion. Approximately 85% of that revenue in 2004 were from long-distance calling that is carried over an IP backbone but originates from both pure and IP access and traditional PSTN.

Complete article may be viewed at: http://www.telephonyonline.com/home/news/ip_centrex_instat_121505/index.html

 

Microsoft and MCI Strike a Deal for PC-to-Phone Calling
Microsoft and MCI announced a global and multiyear partnership to provide software and services that enable customers to place calls from a personal computer to virtually any phone. The new service, MCI Web Calling for Windows Live Call, combines Windows Live software (Microsoft's revamped instant-messaging program), VoIP capabilities and MCI's global network. The service is being tested as part of Windows Live Messenger with subscriptions available initially in the US and later in France, Germany, Spain and the United Kingdom. Subscribers will be able to place calls to and from more than 220 countries.

For now MCI Web Calling for Windows Live Call will only offer outbound calls from PCs to regular phones. Subscribers can place a call from a PC to standard phones, including mobile, by clicking on an entry in their contact list or typing a phone number into the Windows Live Call softphone. Customers can sign up via the Windows Live Messenger and purchase prepaid calling time from MCI in $5, $10 or $25 blocks. MCI will manage customer registration, terminating calls, customer account management, customer support and billing.

 

Indiana Commission Rules on Competitive Telephone Issues
 In an effort to level the playing field the Indiana Utility Regulatory Commission (IURC) took significant steps to establish equity between local exchange carriers and existing competitors in the state while maintaining protections for emerging companies. The commission looked at methods companies use to attract new customers, retain current customers and persuade former customers to return.

The recent order from the Commission reduces some of the requirements for incumbent carriers while at the same time standardizing reporting requirements. Some highlights of the order are:

• All local exchange carriers which offer customers services that vary from standard offerings are required to provide a copy of those customer agreements to the Commission.

• The order establishes price floors so no company can price customer offerings below cost, and requires competitors to provide the same type of cost studies previously required only of incumbent carriers as proof.

As the next step toward further deregulation of local telephone companies, the Commission is opening a new investigation to examine the markets, types of services offered and customer awareness of those options across the state. Visit www.in.gov/iurc for more details.

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