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FCC Rules Telcos Need Not Provide Naked DSL

Devistater writes "Despite at least four states' laws to the contrary, the FCC has ruled that phone companies need not provide naked DSL service to customers, but can require bundling; for example: Voice and DSL. FCC Commisioners Copps and Adelstein say in dissent 'In this decision, the Commission unwisely flashes the green light for broadband tying arrangements.' 'If it is [ok] to deny consumers DSL if they do not [have] analog voice service, what stops a carrier from denying broadband service to an end-user who has cut the cord and uses only a wireless phone? What prevents a carrier from refusing to provide DSL service to a savvy consumer who wants stand-alone broadband only for VoIP?'"

16 of 314 comments (clear)

  1. Bundling always seemed bad to me by Stevyn · · Score: 4, Interesting

    Take cable television. I'd prefer not to waste my money on the 50 garbage channels and just pay for the several I actually watch. However, I have to pay for packages instead of an al la carte scheme.

    As for telephone service. I don't have a land line. I have a cell phone and internet from my cable provider. If my internet came from Verizon through DSL, I could be forced to buy a service just to have internet.

    I don't know how much the government should regulate businesses like this, but if you only have one broadband provider in your area and they want to hit you up for more services than you want, there's not much you can do about it.

  2. Do You Hear What I Hear? by Nom+du+Keyboard · · Score: 2, Interesting

    I hear another court case in the offing.

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  3. Because... by Anonymous Coward · · Score: 2, Interesting

    In general f(a+b) != f(a)+f(b).

    In this particular case, a and b are services, and f is the cost function. Apply the result and you get your explanation.

  4. who by eobanb · · Score: 4, Interesting

    Whose interests exactly is the FCC protecting besides big corporations? The FCC should be working in the interests of American consumers, and they are so obviously not doing this. These all-or-nothing strategies are being used by more and more megagiants like SBC and leave users with little reason to use, for example, VoIP, even though it's about three times cheaper than SBC's phone service. Thanks a whole fucking lot.

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    1. Re:who by stratjakt · · Score: 3, Interesting

      The FCC should be working in the interests of American consumers

      The FCC has nothing to do with the American consumer. They don't control the price of black eyed peas at the supermarket or get to set the prime lending rate.

      They ruled based on law, they couldn't find anything in the law that would prevent the bundling of services.

      Bitch to your congressman, support some consumer advocacy and awareness groups.

      Spouting off about how 'evil' the FCC is, just makes you look like yet another asshat who slept through civics in junior high.

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  5. Who pays for the copper? by cperciva · · Score: 4, Interesting

    Most of the cost of providing phone or DSL service isn't the day-to-day operational cost; it's the cost of running the physical copper cable in the first place. I don't know if the figures are still the same, but at one point it took phone companies 5-10 years to recover their cable-laying investment on new subscribers.

    When ADSL first became popular, it was cheap for a very simple reason: Everybody already had a phone line, so the marginal cost of ADSL was merely the cost of the terminating equipment. The physical link was already being paid for out of the phone bill. Take away the landline phone service, and the ADSL cost jumps sharply, since it will now have to cover the formerly "free" copper wiring.

    DSL simply doesn't make economic sense without attached landline phone service.

    1. Re:Who pays for the copper? by Jah-Wren+Ryel · · Score: 2, Interesting

      Most cableco's give you a "discount" on their ISP service if you also have a minimum tier of tv with them. In many cases, it works out to be a wash - the price of the minimum tier is equal to the discount.

      That said, in my experience the cable discount is $10-$15. While the total cost of a voice-line, even the absolute cheapest possible one, after all the fees, taxes and whatever else nickle-and-diming, is somewhere in the $25-$35 range.

      So, telcos - sell us naked dsl, put a line-cost-recovery fee in there equal to what the recovery rate is for a voice line, and I'll call that fair. But don't make me pay for all the extra crap that I'm never going to use when I don't even have a handset connected to the line.

      Or watch the emergence of uber-cheap community wireless internet access eat your lunch for both DSL and VoIP.
      It may happen anyway, cheap is cheap.

      --
      When information is power, privacy is freedom.
    2. Re:Who pays for the copper? by binaryspiral · · Score: 2, Interesting

      So my 71 year old house that has had phone service since it was built... has already paid for the damn copper pair.

      If I go broadband cable and don't want TV service I get $10 ding on my bill for "cable access"

      If I go DSL every provider in the area says no DSL w/o voice service unless you go for the business grade DSL that starts at $100/month. ..!.. FCC, thanks for the ass pounding without the complimentary reach-around.

  6. At Brasil we have laws to protect us from this... by vhogemann · · Score: 5, Interesting

    They're called "Código de defesa do Consumidor", or "Consummer defense Code".And it states that no one can couple some product to another.

    For example, if you're going to open a bank account the bank can't say that aquiring a credit card is a pre-requisite. Or if you're going to buy a car the reseller can't say that buying the insurance from company X is a pre-requisite.

    It's indeed a very nice law... when correctly enforced. Unfortunetely our major DSL provider (Telemar) couples the service to an account on a "internet provider". This is of course nonsense, since the real conectivity provider is Telemar itself... but yet they still require such account. The worst part is that NONE of the so called "internet providers" has full Linux-compatible media content...

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  7. A short answer... by frank_adrian314159 · · Score: 2, Interesting
    ... what stops a carrier from denying broadband service to an end-user who has cut the cord and uses only a wireless phone? What prevents a carrier from refusing to provide DSL service to a savvy consumer who wants stand-alone broadband only for VoIP?

    Nothing.

    Why would you think that the FCC cares about the public interest anymore? That line of thought is so old school. Especially when there are corporate interests to protect. And I wouldn't expect the House or Senate leadership to help you out much here - last I heard Billy Tauzin's still cutting deals as a lobbyist for telecom interests on the side (when he's not carrying the bag for pharma or entertainment industries).

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  8. Re:As a conservative... by pgsimpso · · Score: 3, Interesting

    The sad thing is that corporations do have rights. They are for all intents and purposed offered the same rights as natural people under the law. See Corporations

  9. Re:Now we see what the FCC is REALLY all about by jcomeau_ictx · · Score: 5, Interesting

    What's to stop us from creating our own cheap/free broadband? See http://unternet.net/ for a start.

  10. Re:This can go either way. by Jackie_Chan_Fan · · Score: 2, Interesting

    The problem is.. The telecos, cable providers etc will of course abuse this.

    Cable does already. Teleco's do already...

    The FCC simply allowed them to continue their bullshit practices.

    I dont want a fucking $50 verizon line just so i can have their FIBER SERVICE!!!!!!!!!!! FUCK OFF

    The FCC is fucking crazy. They're in bed with big buisness. They lifted the consolidation restraints... they've CONSISTANTLY provided the corperations what they want at the expense of the user.

    The FCC is fucking worthless. Maybe they can afford to be forced to pay $50 for a POTS line along with their $50 FIBER service... But MOST people cant because unlike the FCC, their pockets arent filled with the cash bribes from the telecos

    Face it... this world is a waste. We have no say in shit.

    Get rich, buy out the companies you hate... then laugh as you shit on the rubble of their corperate headquarters you just demolished.

    That is the only way to have a say in this country.

    Otherwise.. you're fucking food for the corperations to chew and spit out at will.

  11. Re:As a conservative... by Bullfish · · Score: 2, Interesting

    I've said this before, it's now government by the lobby group, for the lobby group. As far as leaving it to the market, as other posters have noted, the market is skewed. Beyond the local monopolies, their is collusion, price fixing et al. Any fines ever found and levied are slap on the wrist stuff.

  12. Re:That's the end of the telcos by Dcnjoe60 · · Score: 2, Interesting

    While cable is faster than DSL, cable broadband is not universally available, nor is cable available everywhere.

    This ruling isn't necessarily bad. The local cable company allows broadband without a cable subscription, but if you have a subscription, you get a large discount.

    The same is/would be true for DSL if not required to be bundled. With such and such package, your DSL only costs $x amount. Without that package, it costs $xx. Most phone companies are already doing this, so this ruling is a non-issue.

    Community wireless has a long way to go to be viable, sure a few cities offer it in select areas, but it's hardly universal.

    Broadband via the power grid is much more likely. Every house has electricity, so the utility companies are already connected. You could have internet wherever you have an outlet. The technology is available and in use in some areas with more coming online. The only real downside is for the shortwave users. Evidently, it wrecks havock with reception.

    As for the phone companies hurting in a few years because of low cable pricing, once the phone companies aren't a factor in broadband and assuming wireless or powergrid don't step up, the cable pricing won't be low, anymore. It's Econ 101.

  13. Re:Wow by doon · · Score: 2, Interesting

    In theory yes, maintaining the physical plant is where the bulk of the costs are, but the problem is that NECA regulates the prices we can charge the ISP side of the house for that line. If it has dialtone the line is say $20, without dialtone the line is $75. Since this is a tarif and the telco's are regulated they must pay tarif rates..

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