FCC could make decision as soon as this month to allow dominant c...
FCC could make decision as soon as this month to allow dominant carriers such as Bell companies to bundle their basic phone service with customer-premises equipment (CPE) and enhanced services, industry sources said. CPE restrictions have been on books…
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since early 1980s. FCC detariffed and deregulated CPE but said carriers had to offer it separately from their phone services, meaning they couldn’t offer bundled package to consumers that included CPE and telecom service. Situation is somewhat unclear on whether phone companies can offer enhanced services such as e-mail as part of telecom service packages so FCC action would provide clarity. Commission in Oct. 1998 proposed lifting restrictions only for nondominant carriers but discussion since has expanded to possibility of including dominant Bells. In Feb. 27 ex parte letter to FCC, WorldCom said if agency allowed Bells to bundle services and equipment it should require them to still offer basic phone services on standalone basis as well. Otherwise, WorldCom said, Bells will be able to “mask discrimination in the rates it charges competitive service providers for services and facilities over which it maintains a monopoly.” “Since there are no alternatives to their basic services, dominant carriers must be required to make their basic telecommunications services separately available on nondiscriminatory terms,” it said. Commercial Internet eXchange Assn. urged FCC in earlier ex parte letter to “clearly articulate its intentions with regard to the application of regulations and legal doctrine that apply to bundling, to minimize the potential for uncertainty.” ISPs already are having difficulty securing telecom services, particularly DSL, from ILECs “at reasonable rates and on nondiscriminatory terms,” group said.