RBOC slams new regs on competition - regional Bell operating company Ameritech unhappy with 1996 Telecommunications Act - Company Business and Marketing

Staking out its position in the post-1996 telecomm world, Ameritech insists it has no plans to merge with any other regional Bell company (RBOC) and it is ready to do battle on its own.

The company's senior executives steadfastly refuse to toe the official Washington line on industry regulation and declare they plan to slug it out with competitors on Ameritech's home turf.

"We have problems with how Congress and the FCC are legislating and regulating the information revolution," gripes Lawrence Strickling, Ameritech's vice president f or public policy. "Although the 1996 Telecommunications Act breaks down some of the barriers, its universal service provisions will need revision."

Strickling faults the 1996 act in three key areas: that it pays homage to convergence but cannot bring it about in its present form; that it inhibits the deployment of separate, competing networks; and that it perpetuates a lack of control by end users over network information content.

"High-speed access must be broadband and access networks are currently narrowband," notes Patrick Campbell, executive vice president of corporate strategy and business unit development. "The jury is still out on technology, so we'll use ISDN or ADSL (asymmetrical digital subscriber line) where we have copper, cable modems where we have coax, and MMDS (multichannel microwave distribution service) where we have neither."

The 1996 act is only a start, says Northwestern University's Steve Wildman, who predicts that "Universal service demands will lead inevitably to a social revolution. Congress will have to make laws that address a new workplace sociology caused by E-information, E-cash, E-shopping, web sites and telecommuting."

Americast, a video joint venture with Disney Studios, has responsibility for the telco's future multimedia strategy. "We have licensed all cable and broadcast programs and plan to package these as a unique product to be delivered over both wireline and wireless," explains Americast CEO Steve Weiswasser.

Ameritech says the last word has not been written on telecomm legislation. Using Americast's 60% audience share, the telco will aggressively deploy new services over a variety of networks. By creating a multimedia programming package, it is arming itself for a struggle with competitors over business and residential subscriber market share. -- Alan Stewart, Midwest Correspondent

California has declared war on GSM wireless ... says Laura O'Quinn, Moniger Flaherty

Two major California cities have stopped the construction of new wireless digital phone systems for their regions because they reportedly interfere with pacemakers, hearing aids, electric wheel chairs and car air bags. This is the first time local governments have halted development of a local phone technology because of potential health hazards.

Officials at the two cities, San Diego and San Jose, cited potential dangers associated with the wireless digital phone system known as GSM, which has been used for more than five years in Europe. City council member cited news accounts from the Wall Street Journal (April 28, 1995), New York Times (April 29, 1995), Los Angeles Times (November 16, 1995), the BBC, CNN, PC Magazine, the Sunday Daily Telegraph and others that said GSM systems interfere with pacemakers.

The Washington, D.C./Baltimore area is the only region in the United States with a GSM system, though this type of system is under development in other parts of the country. Several Washington area doctors, including a researcher at George Washington University, have documented the problems with these new digital phones.

According to a report in the Wall Street Journal, in some cases GSM digital phones--the type proposed for San Diego and San Jose--will cause a pacemaker to "recalibrate itself or stop and restart when a certain type of digital cellular phone is placed near the chest."

The GSM phones also produce a loud, sometimes painful buzzing in the ears of hearing aid wearers.

"GSM has other problems too," said the July 1995 issue of PC Magazine. "Sweden bans the phones from hospitals because they reportedly interfere with pacemakers and electric wheelchairs. A report from an Australian newspaper claims a GSM car phone set off the car's air bag... Given what we know about the potential effects of GSM on more than 6 million hearing-aid wearers, it's unconscionable to pursue this option."

FCC rules on interconnection applauded ... by MCI Chief Policy Counsel Jonathan Sallet

MCI is encouraged by the Federal Communication Commission's call for a single set of nationwide rules to give clear and consistent guidance to the states as they work to create real competition in all sectors of the communications market. The Notice (of April 19) starts the race for competition and open markets. It will be up to the FCC to establish the right path to get there.

MCI is also pleased that the FCC has tentatively concluded that any telecommunications carrier can purchase unbundled network elements at cost, free of access charges.

It's time to start competition in all telecomm markets by setting the rules of the game now--so we can quickly bring the benefits of competition to consumers and new opportunities to vigorous competitors.

COPYRIGHT 1996 Nelson Publishing
COPYRIGHT 2004 Gale Group