A myriad of competitive choices

I feel compelled to respond to Professor Halls recent editorial concerning the altering of the phone industry, Rescuing Telecom. I have heard this call for the creation of a wholesale local network company -- in lieu of ILECs -- several times, and each time I wonder if the writer has seen the myriad of competitive choices available to the local network consumer?

Wireless, satellite, fixed wireless, cable and CLEC networks all offer services that directly compete with local carriers. Long-distance service plans are offered by all wireless providers, at a price that has many consumers using wireless as their preferred way of making long-distance calls, whether at home or on the road.

High-speed Internet access can be provided by the local cable company, a satellite company, fixed wireless vendors or CLEC networks. With VoIP technology becoming more and more reliable, does anyone think for a moment that local and long-distance via these technologies will become even more prevalent? Of all these infrastructures, only the ILEC is required to have an open network, allowing any CLEC or ISP use of the ILEC facilities. Could you imagine the reaction if you told DirecTV that in order to be able to send up another satellite to increase capacity, they would have to share it? At a loss?

I hear the word monopoly thrown around a lot when it comes to ILECs. But monopolies of what? Large corporate networks? No. High dollar business customers? No. Broadband services? No. The ten-dollar-a-month residential customer? Well, yes, the ILEC does have a monopoly on those consumers. For some odd reason, these customers aren't sought out by the competition.

There are several robust technologies competing within the local loop. In my opinion, the Telecommunications Act of 1996 has been a fantastic success. But you are right, in one sense, about the lack of local competition for the small residential user of telecommunications services. Residential rates have always been set by state PUCs. To have the local competition you envision, residential pricing would have to be doubled or tripled to entice CLECs to move into the local loop. Cumbersome regulations, artificial pricing and must-carry CLEC provisions are all detrimental to your goal of a more competitive local loop, not ILECs and not the Telecommunications Act of 1996.

Kevin O'Rourke
OSP Design Engineer
Santa Rosa, Calif.