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LookAtBT
@co.uk
 from:
JTRockville 
| reply to pnh102
Re: Organization
said by pnh102 :Unbundling was never going to work in the USA simply because the ILECs were not split among functional lines. That is, the company which owns and maintains the wires and facilities is a separate business from the companies that sell and support the actual service. I have to strongly disagree. Here in the UK the resident ILEC (BT) was split amongst functional lines with the help of the regulator OFCOM. This split is:
BT Retail
BT Wholesale
BT Openreach
BT Global Services
Link here for the company structure.
The one of interest is BT Openreach which manages the UK's telecommunications infrastructure. This new split to BT started operating in January 2006 and was created to ensure that all other operators or CLECs were on an equal footing with the rest of the BT group such as BT Retail, etc. Therefore, the rest of the BT group are customers of BT Openreach, on an equal footing with the other CLECs. So when Openreach upped prices, then everyone paid including the other arms of BT.
Also, a strong regulator such as OFCOM ensured that BT Openreach was not charging excessively and took measures such as advocating price cuts to foster competition.
This "spirit" allowed CLECs to move in and start providing services. Once they have been established, they started taking advantage of local loop unbundling by providing their own PSTN services (ex. Bulldog).
Slowly other providers started leaping past BT such as offering unlimited speeds of 8Mbps download (ADSL 1- if you live close to the exchange) and upping the competition. Then BE was the first to offer ADSL2+ on a nationwide scale by provisioning their own DSLAMs in the exchanges. BT Openreach and other CLECs started to follow suit but are trailing behind.
Now from a competition point of view, it does not seem that we are as advanced as France or in technology stakes, even close to the US with FTTH but we are getting there.
IMHO, if the ILECs were divided into functional lines such as has happened with BT, and the regulator FCC was willing to undertake unpopular decisions in the eyes of the ILECs, then maybe you would be seeing more competition and services offered. The problem with the US market is that there seems to be a common agreement between ILECs not to encroach on each other's "turf". This may be a misconception but that is from the outside looking in. Also, there are multiple ILECs and regulating them is more of a burden than the UK.
In addition, there seems to be what is called a "post code" or "zip code" lottery where services will only be provisioned if it meets certain requirements as regards population density, ROI, etc. That makes the US a much harder market to foster competition and will require, IMHO, a radical enforcement of installing broadband services in all exchanges.
I now hear that why should the ILEC provision services in an unprofitable area as they are not in it for the charity. That is a good argument. Another stance on this is that the same thing could have been said about POTS when it was first rolled out. Broadband right now may be perceived as a luxury but the same was said of POTs and look how much of a necessity it has become. For something to become a necessity, there has to be full saturation of the luxury and with it, essential services become deployed using it. These essential services make it a necessity as has happened with POTs and emergency services which were not deployed when POTs was first rolled out but as an after though.
Just my 2c as my friends across the pond would say. | |
KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
 ·Cox HSI
 ·AT&T Southwest
| Exactly, this is how is should be done in the USA but never will be because corporate lobby prevents it. Despite the fact the competition would be good for the industry and consumers as a whole, the big incumbents will make sure this type of a split NEVER happens.
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"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) | |
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