[comp.dcom.telecom] RBOC's Can Now Manufacture Equipment

Ken McVay <Ken.McVay@onebdos.oneb.wimsey.bc.ca> (06/07/91)

  From a story in the {Ft Lauderdale Sun-Sentinel}, based on wire
services, the U.S. Senate had approved a bill that gives the RBOCs the
right to manufacture telephone equipment in competition with AT&T.
This bill passed 71-24 although there was concern of a presidential
veto due to provisions preventing the RBOCs from running foreign
manufacturing operations. In other words, the bill has a "buy
American" slant to it, to maintain domestic manufacturing. All
products made by the RBOC's must contain at least 60% domestic parts,
and their equipment would have to be made available for purchase by
independent telcos.

Furthermore, a new bill could let the telcos compete directly with
cable companies, while setting forth a goal of a nationwide fibre
optic network by 2015 (presumably this means local fibre access; long
distance fibre should mostly be in place by the major carriers).

Sen. Albert Gore supported the cable bill, stating high rates and poor
service of cable companies while claiming that competition could
reduce cable TV rates by half. A separate bill sponsored by Gore would
bring back federal regulation of cable TV while preventing telcos from
buying existing cable systems within their territory.

To compare cable TV rates and illustrate the cost situation, Rogers
Cable in Toronto charged CAD$18.56 per month, including tax (or about
USD$16.90, depending on exchange rates). Com-Cast out of West Palm
Beach, FL charges well into the USD$20's/month and has plenty of local
advertising superimposed on its offerings (like CNN). Meanwhile, there
are tales of vastly reduced rates in those U.S. jurisdictions that
have allowed a competing cable company to start up business.


David Leibold   dleibold@attmail.com    Dave Leibold - via IMEx node 89:681/1
Dave.Leibold@f135.n82.z89.onebdos.UUCP  Uucp - via IMEx node 89:681/1
Uucp@onebdos.oneb.wimsey.bc.ca

Ken McVay - via IMEx node 89:681/1      Ken.McVay@onebdos.oneb.wimsey.bc.ca

Scott Hinckley <scott@hsvaic.boeing.com> (06/11/91)

In <telecom11.440.8@eecs.nwu.edu> Ken.McVay@onebdos.oneb.wimsey.bc.ca
(Ken McVay) writes:

> To compare cable TV rates and illustrate the cost situation, Rogers
> Cable in Toronto charged CAD$18.56 per month, including tax (or about
> USD$16.90, depending on exchange rates). Com-Cast out of West Palm
> Beach, FL charges well into the USD$20's/month and has plenty of local
> advertising superimposed on its offerings (like CNN). Meanwhile, there
> are tales of vastly reduced rates in those U.S. jurisdictions that
> have allowed a competing cable company to start up business.

We have competing cable companies here (Comcast and Cable Alabama). I
am on Comcast (descision of the apt complex, not me) which runs
$11.50/month for 34 channels including; MTV, VH-1, CNN, Headline News,
TNN, TNT, and many others. HBO, Cinemax, Showtime and Disney are each
$7/month.  A converter (required for HBO, Cinemax, or Disney) runs
$1.00/month.

Cable Alabama runs $12.95/mont for 53 channels. HBO, Shotime, Cinemax,
TMC, and Disney are $7.68/month each. A converter box (required for
pay channels) is $4.00/month.

Both companies are reported to be running at a large deficit, and have
been requesting permission to merge for several years. (Brendon?)
Cable has offered to buy them several times. The city council refuses
to let either event happen.


Scott Hinckley  Internet:scott@hsvaic.boeing.com
UUCP:...!uunet!uw-beaver!bcsaic!hsvaic!scott
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