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FCC Considers Deregulation of DSL
Phlatline_ATL writes "In an article on ArsTechnica, they explore the FCC's current consideration to reclassify DSL as an information service and as such would no longer require the telcos to lease out their lines. This seems like it would effectively make the telcos the exclusive DSL broadband providers." From the article: " So after six months to a year it would be goodbye Earthlink and Speakeasy, hello SBC DSL monopoly (in the case of Chicago, where I live). So the telcos would get what they want, which is no competition while the consumers get screwed. But it's perfectly logical under the FCC's definition of broadband competition, where they want cable to compete with DSL--and hopefully IP over power lines and WiMax down the road."
They're not the cheapest, but their staff is the most knowledgable I have seen, and they're definately the most Linux-friendly.
The more people that switch away from SBC the more money the competition has to fight this stuff.
Slashdot: Where people pretend to be twice as smart as they really are by behaving like children.
Clearly SpeakEasy and Earthlink don't know how to properly bribe officials to keep themselves in business. It's their own fault, really.
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Isn't that like saying only one company is allowed to make pencils, and another to make pens, and those two companies will compete? They fight with the marker company and the crayon company too?
Is this what competition now is?
The infrastructure built by the Bells was heavily subsidized by... your tax dollars.
Would another company be allowed to build poles and run lines right next the current lines?
McLeod has Fiber running 150 feet from my house along County Rd 46. I don't have access to those lines and they are likely sharing the "public space".
So why are they being treated differently? If we are going to regulate/deregulate due to public space I want access to that Fiber.
What is wrong is that the ILEC's (SBC, Verizon, etc) have had 100+ years as a protected monopoly to build their networks on the backs of their captive customer base.
CLEC's and other DSL providers have had since the 1996 Telecom Act to try to build a business in the face of the 800 lb gorilla.
It is silly to act like the ILEC's have been successful by building a business just like anyone else does. They haven't. They had the enormous advantage of being the only game in town for a long, long time.
What we need is structural separation.
Break each Babay Bell into two units.
One being a regulated company that owns the outside plant. It would be required to sell access to everyone equally at requlated, cost-based rates.
Take the switching and retail side of the company and put it into another, un-regulated unit. This company would buy loops from the regulated company just like every other CLEC does.
Of course this is pie in the sky.
The Baby Bell's have far too much lobbying power for this to ever happen.
No company is going to be able to install the nationwide infrastructure that the telcos have -- it would be a multi-trillion-dollar investment if it was even possible given the amount of disruption to everyday life (digging up streets, etc.) that would be required. It was built piece by piece during the monopoly era, funded by a combination of tax money and monopoly profits, over a period of 90 years. The only way to participate in the DSL market is through the existing infrastructure.
To anyone who thinks Bell Telephone was a benign monopoly, well, you're wrong. I remember all too well the days when you had one choice of long distance carrier -- AT&T -- and you paid whatever they felt like charging. I remember when a 3-minute call to a town 15 miles away cost $1.63 (my parents made sure I'd remember). I remember when you were legally prohibited from owning a telephone; you had to rent them from the phone company, and since they had a monopoly there, too, they had no reason to offer anything more than desk, wall, and "princess" styles, and a handful of colors (about 5), so they didn't. I remember when long distance calls were something you made on special occasions, birthdays and holidays, not how you chatted with your friends for hours. I remember when they required you to get permission before connecting so much as an answering machine, and argued that allowing people to plug in their own hardware would cause the entire national phone network to collapse. (funny, it's still there) The Bell monopoly was never benevolent.
It is just mind-blowing that the federal government is redefining "competition" as "closing down multiple profitable companies competing in a given market and turning that market over to a single monopoly."
The power company owns the poles (and hates it when people call them telephone poles). Nothing is stopping a company from leasing pole space from the power company to run lines to compete with the phone and cable providers except the extreme cost.