Copyright 1999 Globe Newspaper Company
The Boston
Globe
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February 18, 1999, Thursday ,City Edition
SECTION: OP-ED; Pg. A15
LENGTH: 651 words
HEADLINE:
Opening up communications;
WAYNE A. BUDD;
Wayne A. Budd is Group
President for New England for Bell Atlantic.
BYLINE: By Wayne A. Budd
BODY:
Since the
Telecommunications Act of 1996 became law three years ago this
month, we at Bell Atlantichave met all and surpassed many of the act's
requirements to open our local markets to competition. Both Bell Atlantic and
our competitors should have the same incentive: a fully competitive
communications marketplace. Together we can and should make competition work for
the benefit of all customers and all carriers. After a slow start, the seeds of
a competitive residential market in Massachusetts are finally blossoming. Recent
headlines have touted Media One's expansion of its Massachusetts network, plans
by Cablevision and SBC to offer local telephone service in the state this year,
and RCN's expansion into more Boston-area communities.
These
developments show that overall, the act has been working. But there have been
some frustrations as well. First, the good news.
Massachusetts business
owners have seen great deals on full packages of products and services. Choices
abound for local, data, and long-distance services.
Wireless phones are
now a choice for many. The Yankee Group says rates have dropped by an average of
40 percent between early 1995 and 1998. The reductions have triggered record
volumes of wireless phone use, affording all Americans the safety and
convenience of wireless communications.
Moreover, Internet access and
use have soared. A recent study by Nielsen Media Research and CommerceNet found
that more than 70 million Americans use the Internet. Many users enjoy unlimited
monthly access for the cost of just two movie tickets.
New products and
services are making the Internet faster and easier to use. Network investment
remains strong. Since 1996, Bell Atlantic has invested about $2
billion in the local Massachusetts infrastructure. Our network is now fully
digital and includes more than 500,000 miles of fiber-optic cables.
Now
the bad news.
Data calls have surpassed voice traffic. That should be a
positive for our state's information-intensive economy. Yet businesses from the
Berkshires to Cape Cod are clamoring for more options to reach the Internet.
Archaic regulations created for voice services have prevented Bell Atlantic from
offering customers a full array of data services. Frankly, that's holding back
some areas of our state. With less regulation for data services, the act could
be working better for every corner of our state.
Second, the framers of
the act clearly intended that consumers would be well on their way by now to
enjoying the benefits of competitive local and long-distance services.
Unfortunately, most of the 300-plus companies providing communications services
in Massachusetts cater to lucrative business customers. Options for residential
customers are still limited.
Why are residential customers being left on
the sidelines? The big long-distance companies have the resources and legal
latitude to fully serve residential customers today, but they won't. The reason?
Profit margins in the long-distance market dwarf those in the local phone market
- approximately 38 to 11 percent.
Ironically, many smaller telecom
companies have proven that any company that wants to compete in the local phone
market can do so. And those that want to compete are doing so quite well. If
Princeton-based RCN can do it, then why can't the big long-distance companies?
But until companies such as Bell Atlantic can compete in the
long-distance market, the long-distance companies are not going to enter the
local residential market, leaving residential consumers without the full
benefits of increased competition.
Three years after the
Telecommunictions Act, the promise for Massachusetts consumers remains real. Our
local telephone market is open to all who want to compete here. All we need to
do now is eliminate the last barrier preventing residential customers from
enjoying its fruits.
LOAD-DATE: February 18, 1999
