[comp.dcom.telecom] Local Competition Comes to Illinois Bell

telecom@eecs.nwu.edu (TELECOM Moderator) (03/03/91)

Illinois Bell will open its switching offices to non-Bell competitors
in a move expected to enhance competition in the arena of local
telephone service in Chicago and improve the reliability of telephone
networks that specialize in high speed data transfers.

The new policy, effective April 7 pending final approval by the
Illinois Commerce Commission, will allow Teleport Communications and
Metropolitan Fiber Systems to interconnect their systems with Illinois
Bell.  Teleport and Metropolitan Fiber are waiting now for approval,
but other competitors may be on the way.

The tariff filed by IBT this past week would allow rival companies to
resell Illinois Bell services to customers. By allowing this, Teleport
and Metropolitan Fiber will both be able to offer packages that would
otherwise be uneconomical.

For the time being, the competitors will limit their offerings to
business services, particularly in the area of high speed data
transfers.

The agreement grew out of negotiations between IBT and Teleport, which
had filed a suit with the Illinois Commerce Commission over IBT's
earlier reluctance to allow interconnection.

According to Scott Bonney, director of regulatory affairs at Teleport,
" ... a lot of telephone companies say they favor increased local
competition, but it is mostly just lip service. With Illinois Bell
though, the situation is different. Illinois Bell has always been a
very enlightened organization; we feel they will be fair in dealing
with market rivals."

James Smith, director of regulatory affairs for Illinois Bell
confirmed that the company will install and maintain switching
equipment in its offices that meets the specifications of its
competitors, most notably Teleport and Metropolitan Fiber. He would
not commit to a specific start-up date but said 'later this spring' a
routine will be in place for handling interconnect requests.

Bonney also said that interconnection will increase the already wide
diversity of telecom services in northern Illinois. "In a big way,
interconnection will improve survivability of the communications
infrastructure for Chicago," he noted.

What other communities and/or local telcos are entertaining the idea
of competition in local exchange service?  What others are actually
implementing it at this time as is Illinois Bell?


PAT

peterm@sumax.seattleu.edu (Peter Marshall) (03/04/91)

Pat's 3/3 post poses an interesting question.  In Washington, LEC
competition is now potentially on the horizon, virtually for the first
time.

At the PUC here, this has become a question of "first impression" with
registration applications and/or competitive classification petitions
to the PUC by GCI Fibernet and Electric Lightwave. The former is
controlled by TCI, and the latter is being represented at the PUC by
an attorney for a state org. of large telecom users.

In context, the City of Seattle is reviewing proposals, including one
from ELI, for a partner to develop a fiber net, and the Port of
Seattle is developing a teleport project.

Interest seems high from the industry in the state, and there's also
been some press attention so far.


Peter Marshall

               halcyon!peterm@sumax.seattleu.edu
  The 23:00 News and Mail Service - +1 206 292 9048 - Seattle, WA USA

john@zygot.ati.com (John Higdon) (03/04/91)

On Mar 3 at  9:05, TELECOM Moderator writes:

> What other communities and/or local telcos are entertaining the idea
> of competition in local exchange service?  What others are actually
> implementing it at this time as is Illinois Bell?

I would swear that if a person walked the streets of San Francisco and
happened to utter the words, "Local Competition", a trap door would
open in the sidewalk and the individual would never be heard from
again. Pac*Bell, for good reason, is probably more afraid of LEC
competition than any other telco in the country.

Even as we speak, there are hearings covering the topic of competition
in intraLATA toll traffic. Pac*Bell is of course bad-mouthing this
with the argument that this "exclusivity" is what keeps "your
telephone costs down". The threat is that basic rates will have to
rise substantially to compensate for the loss of toll revenue.

But the handwriting is on the wall. It appears that Pac*Bell will get
its way in at least one aspect: the accessing of the intraLATA
carrier.  There will be no pre-subscription as there is with interLATA
traffic.  Each call will have to be prefixed with a THREE digit code,
otherwise the call will be carried by Pac*Bell. This is no problem for
those with dialers and smart PBXes, but, as usual, the Aunt Minnies of
the world will still be patronizing Mother.

Once again, Illinois Bell demonstrates why it is an industry leader
and Pac*Bell proves what it is.


        John Higdon         |   P. O. Box 7648   |   +1 408 723 1395
    john@zygot.ati.com      | San Jose, CA 95150 |       M o o !

0004133373@mcimail.com (Donald E. Kimberlin) (03/04/91)

 
In Digest v11, iss176, our Moderator opens with news from Chicago:
 
> Illinois Bell will open its switching offices to non-Bell competitors
> in a move expected to enhance competition in the arena of local
> telephone service...
 
> The new policy, effective April 7 pending final approval by the
> Illinois Commerce Commission, will allow Teleport Communications and
> Metropolitan Fiber Systems to interconnect their systems with Illinois
> Bell.  Teleport and Metropolitan Fiber are waiting now for approval,
> but other competitors may be on the way.
 
> What other communities and/or local telcos are entertaining the idea
> of competition in local exchange service?  What others are actually
> implementing it at this time as is Illinois Bell?
 
        Actually, Pat, it's among the first visible cracks in a
curtain the FCC has been pulling away at local Telcos as another facet
of its drive to break the local Telco monopoly.  It's part of Open
Network Architecture (ONA) with an FCC requirement to provide
Comparably Efficient Interconnection (CEI) to other providers in the
local arena.

        Within the past week, New York Telephone announced it would
provide similar opening of its premises.  The "work" of forging this
crack has been underway for quite a few years, and only now is it
becoming visible. (I worked on a local fiber job in Los Angeles a year
and a half ago that had entrances from others planned into the Los
Angeles PacBell Building on its Grand Avenue cable vault side.
Everybody close to the business knows (and knew) it was just a matter
of time.)

        Another operative buzzword of these actions is "co-location,"
meaning the provision of a space inside the Telco building for the
obviously needed terminal gear of the "Alternative Access Carriers,"
or AAC's as the Teleports and Metropolitan Fibers are coming to be
called, at least from the interstate point of view.  The actual means
of doing this are Draconian at best.  It seems to be evolving into a
typical scene in which the "other parties" have to rent square feet of
floor space, enclosed within a locked screen at the insistence of the
local Telco to "protect" against accusation that the Telco's people
ever meddled with the gear.  Further, the Telco provides only AC
power, not any of its already-present DC power, so the "other firms"
have to duplicate a function, providing their own rectifiers and back-
up power.  Then, the "other parties" have to provide building heat
laod information on their equipment in order to arrange a charge for
the space, power consumption and cooling load.

        So, nobody is welcoming these interlopers into the Temple of
the Telco.  Fortunately, fiber technology is such that interconnection
of DS-1's and DS-3's are what the Telco will accept, and the physical
requirements can be met with today's technology.

        As to the Chicago scene, a local fiber carrier called Diginet
is actually longer established and probably is in the fray as much or
more than the others.  Diginet actually operates all the way from
Chicago to Milwaukee and has done so for a half decade already.

        So it's quiet in your town?  That doesn't mean there's no
activity.  Just don't expect your Telco to announce it in your bill
stuffer.  They'd rather you didn't know about it.

        And while we have the topic of Alternative Access open, let's
take note that MCI bought the transmission portion of Western Union a
year or so back.  That acquistion included miles and miles of Western
Union conduits in the streets of more cities than any of us knew
about.  I knew of a list of 17 major cities where WUTCo had cables in
the street for years.  But I even heard of digging in the streets of
Oklahoma City that exposed _wooden_ conduits marked "Western Union"
just a year or so ago.  At the moment, MCI is so beleagured it's
doubtful they even know much about this asset, but you can expect them
to either: a.) sell it in bits and pieces to the others, or b.) have a
realization and announcement sometime in the future that MCI has a new
business area open.

        It is, without doubt, an important announcement and one we
will see much more of, grudgingly admitted to by the Telcos.  Free
market, here we come ... kicking, clawing and screaming the whole way!
 

wb8foz@mthvax.cs.miami.edu (David Lesher) (03/05/91)

|        And while we have the topic of Alternative Access open, let's
| take note that MCI bought the transmission portion of Western Union a
| year or so back.  That acquistion included miles and miles of Western
| Union conduits in the streets of more cities than any of us knew
| about.  I knew of a list of 17 major cities where WUTCo had cables in
| the street for years.  But I even heard of digging in the streets of
| Oklahoma City that exposed _wooden_ conduits marked "Western Union"
| just a year or so ago.  

Hmm,

This brings up a VERY interesting scenaro. WU used to have not just
cable, but pneumatic message tube virtually everywhere in many Eastern
US cities. A late friend of mine who worked for WU through both World
Wars talked about the seventeen-odd branch offices that they had in
downtown Cleveland alone - all interconnected by message tube.

Folks, you can stuff an awful lot of fiber bandwidth down just one of
those tubes. Heck, if you did it right, maybe you could get the fiber
pulled in by a carrier tube - no digging needed.

But don't worry, John. Pac Bell is safe. Chances are, California hadn't
been discovered when WU was putting in tubes;-]

cyberoid@milton.u.washington.edu (Robert Jacobson) (03/06/91)

Given that there are unavoidable overhead costs associated with
colocation, who picks up the tab?  And who sets it?  Do these new
providers of local service pay any sort of access charge, or are they
(1) creamskimming the business market and (2) providing telcos with a
foil for arguments that will deregulate "competitive" (i.e., read
"business") services and put the greater rate burden on residential
customers?

In California, the energy utilities were prodded by neoconservative
regulators into permitting competition, too.  The net result was much
lower rates for very big customers (the $10 million+/year sort) and
much HIGHER rates for the "core" customers, those unable to avail
themselves of competitive services (who don't want the overhead of
serving smaller customers).  Even small business, which finds itself
in a neither fish nor fowl situation pays -- in fact, in many
situations, it pays the most.

Local competition has a nice ring.  Like the cash register's...


Bob Jacobson

npl@mozart.att.com (Nickolas Landsberg) (03/07/91)

In article <telecom11.182.8@eecs.nwu.edu> wb8foz writes:

> This brings up a VERY interesting scenaro. WU used to have not just
> cable, but pneumatic message tube virtually everywhere in many Eastern
> US cities. A late friend of mine who worked for WU through both World
> Wars talked about the seventeen-odd branch offices that they had in
> downtown Cleveland alone - all interconnected by message tube.

> Folks, you can stuff an awful lot of fiber bandwidth down just one of
> those tubes. Heck, if you did it right, maybe you could get the fiber
> pulled in by a carrier tube - no digging needed.

While I was running underground construction in NYC (more years ago
than I care to admit to) we used to come accross these beasts in the
streets.  Since they were unused, we generally wound up ripping them
up (of course, after calling the "rightful owners" to see if they
wanted the salvage value of the copper :-) ).  I doubt if you could
find an unbroken run of these pneumatic tubes anywhere nowadays.


Nick Landsberg


[Moderator's Note: A nice deal here in Chicago are the miles and miles
of underground tunnels built at the turn of the century by the now
long-defunct Chicago Tunnel Company. The tunnels go under every street
downtown, and connect all the office buildings. Originally (in 1900)
used to carry coal in to heat the buildings and to carry garbage out,
the tunnels have been used in recent years for lots of fiber optic
cables and other utility service wires.  PAT]