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Friday, 1 April, 2005
 
Sorry Wrong Number

The FCC made the news with a regulatory ruling. The issue was "BellSouth Telecommunications, Inc. Request for Declaratory Ruling that State Commissions May Not Regulate Broadband Internet Access Services by Requiring BellSouth to Provide Wholesale or Retail Broadband Services to Competitive LEC UNE Voice Customers" The ruling is FCC Finds That States Cannot Force Bells to Provide DSL Service to CLEC Voice Customers. [order pdf] this along with Commissioners Copps and Adelstein [dissenting] Statement can be found off the FCC's home page.

As the ars technica article A death knell for naked DSL? points out it has its weird consistancy of dereglated competitiveness as long as the competition is outside their service monopoly, ie cable or satellite agaisnt dsl. This is similar to the FCC's long standing nonsensical notion that having one corporation own every TV, radio station and newspaper is ok; because these are all different things - the information is therefore different, and not possessed of one viewpoint.  In their separate statement Copps, Adelstein, dissenting in part, approving in part (principle of transportability of phone numbers across carriers): try to raise a flag on what they term "broadband tying":

A tying arrangement occurs when a seller conditions the availability of one product on the buyer ís purchase of a second product...this practice could limit consumer choice and reduce competition.

It seems starkly anti-competitive to me. It allows the baby bells to leverage one segment of the market to preclude customer choice. It massively raises the barrier to new competition entering the market. Newcomers will be left with the challenge of having to enter phone service, DSL , perhaps Voip markets at once to get customers clear of the Bells. This will likely chase out what competion in DSL ips there is - companies such as Toadnet (whom I like because they sponsor NPR's Soundprint) the existing regional telco's will have you over a barrel and will have the DSL option all to themselves.

Behind much of the extravigant posturing for freer markets is just a facile corporatism, the grinding down of choice, a grasping after rent seeking arrangements, the grinning reek of government-mercantile partnerships.


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