Radically revamping installation and security at the user end is key to cutting costs and making triple-play services profitable, Richard Caballero, Supportsoft dir.- digital mktg., said in a USTelecom vendors “webinar” Wed. Complexity is on the rise along with bandwidth requirements, so keeping clients from needing too much support-center time has to be a primary goal as carriers bring new video and data customers into the fold, and getting them from the start is key to this.
The FCC should extend the freeze on jurisdictional separations “at least three to five years” and open a rulemaking in the meantime to seek comment on reforming the process, AT&T said. In an April 6 ex parte filing at the FCC, AT&T said it doesn’t think a 2-year extension proposed by NARUC leaves enough time for full review of the issues and making changes. AT&T criticized a NARUC recommendation that line counts be used to assign private line and special access costs between the 2 jurisdictions. AT&T said it’s no longer easy to separate line counts between the 2 jurisdictions because “improved technology allows companies to use assets for multiple services or jurisdictions.” The same day, NARUC told the FCC it disagrees with an earlier USTelecom separations proposal (CD Dec 19 p7). NARUC said USTelecom wanted to extend the freeze without proper comment by the public and referral to the State-Federal Joint Board on Separations. The separations process differentiates between interstate and intrastate telephone company costs.
The House Judiciary Committee plans its first telecom antitrust task force hearing Fri., with an oversight hearing examining net neutrality and the market power of Bell companies. Witnesses scheduled to testify include USTelecom Pres. Walter McCormick, CompTel Pres. Earl Comstock, Paul Misener, Amazon vp-global policy, and Stanford U. law Prof. Lawrence Lessig.
Senate Commerce Committee Chmn. Stevens (R-Alaska) hopes to hold a hearing on mergers before marking up a telecom bill, he said Thurs. at a hearing focusing on telecom industry convergence. “The proposed AT&T-Bell South merger would certainly alter the communications landscape in this country, and is likely to trigger additional transactions,” said Ranking Member Inouye (D-Hawaii), who wants the committee to examine the merger “specifically.”
The first annual TelecomNext convention got generally good reviews from exhibitors and attendees -- but most of those we talked to indicated the show, organized by USTelecom, is probably just first up in a convention battle with the Telecom Industry Assn. (TIA). The next stage of the battle is TIA’s Globalcomm, which begins June 5 in Chicago. TIA and USTelecom jointly organized Supercomm before the 2 split and decided to offer separate conventions beginning this spring.
The long-awaited House telecom bill got a warm reception from Bell companies, but net neutrality proponents Tues. called it a step backward for the Internet (see separate story in this issue). The bill puts net neutrality regulation in the FCC’s hands, but it specifically orders no rulemaking -- a provision critics say would limit the FCC’s enforcement power. Cable gave the bill conditional approval, praising progress from earlier drafts. The bill doesn’t include a buildout provision -- considered a key stumbling block in building bipartisan support on the committee.
LAS VEGAS -- Telcos are only beginning to spend money on IPTV and next-generation networks, but they're starting to decide how, vendors said on the show floor at the TelecomNext convention here. “The big money will be spent over the next few years,” Anne Coulombe, SeaChange dir.-product mktg., said: “This is still nascent, but the big decisions are being made now.”
LAS VEGAS -- Moving toward 100 Mbps data rates to users and IMS (IP Multimedia Subsystems) are the next big challenges and the next big opportunities for telcos, Bell officials said at the USTelecom convention here. But others said consumers aren’t likely to want to pay more for the services, forcing telcos to seek new revenue sources.
LAS VEGAS -- The FCC’s decision to give Verizon regulatory relief for broadband services (CD March 20 p1) is a prime example of the agency’s goal to make sure regulatory policy doesn’t impede deployment, FCC Chmn. Martin said Tues. at USTelecom’s TelecomNext show here. Such decisions encourage investment by making sure govt. doesn’t improperly intrude on the market, he said.
LAS VEGAS -- The explosion of new telecom technologies has contributed to the fact that “the media landscape has changed more in the last few years” than in any previous period, said Disney CEO Robert Iger, keynoting the USTelecom convention. His speech was only one of many indications that telecom-TV convergence was a central theme here.