March 26, 2005

FCC unplugs states' rules on 'naked' DSL | CNET News.com

Yet another complication created by the advancing technologies.

Let's not forget the fundamental issue underlying all this. The Bells made the investments in the landline facilities and the DSl capacity. Reselling underlying services/capabilities to competitors must be at a price that recovers the costs of operating and maintaining that investment. For the long term, fiber to the home/premises is the direction that landline investments will take, but a long transition form copper to fiber in the local loop remains.

I expect we'll see more of these preemptions by the FCC to avoid the patchwork of state regulation.

"The FCC voted 3-2 to suspend public utility commission regulations in Florida, Georgia, Kentucky and Louisiana that had forced BellSouth to sell DSL service to other telephone operators, separate from its local phone service. In the past, the two services had been inextricably linked.

That decision sends a strong message to other state utility commissions that might be considering similar rules, which were intended to encourage the widespread availability of naked DSL. The Bells--BellSouth and the nation's three other top phone and DSL providers--have warned that slightly different naked DSL rules in each state could slow broadband growth in the United States and undermine BellSouth's incentive to invest in the service and the underlying network."

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