By David Sims
[email protected]
A look at the telecom news of the past week, while listening
to The Steve Miller Band’s highly underrated Sailor album from 1968:
President Bush has nominated a Republican seat on the Federal Communications Commission,
Tennessee lawyer Deborah T. Tate. Tate is currently serving a six-year term as
director of Tennessee’s Regulatory Authority, which sets rates and service
standards for private telephone, natural gas, electric and water utilities.
She was appointed to the position in February 2002 by the
governor and confirmed by the Tennessee General Assembly. She has also served
as a member of Governor Sundquist’s senior staff and was his designee to the
Juvenile Justice Commission and the TennCare Partners Advisory Committee from
1996 to 2000.
According to the Washington
Post, “telecom analysts and lawyers said they expected Tate to broadly
support (FCC Chairman Kevin) Martin’s positions and the general deregulatory
trend favored by the Republicans. As a former state regulator, they suggested
she might be quicker to defend the prerogatives of states in battles over
jurisdiction with Washington.”
In an FCC filing last year, the Post says, “Tate wrote that she wanted ‘the states and the FCC to
reevaluate our overall regulatory program so that consumer welfare is the
centerpiece of regulation rather than restraining the market power of
increasingly hypothetical monopolists.’”
This would sound like Tate would be sympathetic to big phone
companies like Verizon and SBC, and their pleas that they face “growing
competition from cable, Internet phone and wireless providers despite their history
as regulated monopolies.”
…
In great news for the telecom industry worldwide, India
this past week India announced “a slew of relaxations in its telecom rules,
which not only allows more players -- both local and foreign -- to enter the
country’s burgeoning telecom sector, but also allows existing and newer players
more flexibility, slashes call rates even further and makes internet telephony legal in the country,” according to UPI.
The annual license fee payable by operators for providing
international long-distance call service and national long-distance call
service has been slashed from 15 percent to 6 percent of gross revenues. The
entry fee for ILD operations has been reduced by 90 percent, from $5.5 million
to just $550,000 while for NLD operators, the reduction is from $22.2 million
to $550,000.
Communication Minister Maran said, “I expect telephone calls rates to drop by
at least 9 percent across the board immediately as a result of this reduction,
which also removes artificial barriers and we hope to have a lot more
competition in both ILD and NLD segments,” UPI reports. And as everybody knows,
competition means better products at better prices for consumers. Way to go,
India, this reporter salutes you.
The government has also decided to do away with the roll-out obligations, which
means that the NLD license holders will no longer be required to have a point
of presence in each long distance charging area, which could kind of suck for rural
India, since operators don’t have to maintain infrastructure in unprofitable
areas.
And currently, believe it or not, Internet-based telephony is not legal in
India. “Users can only dial overseas phones from their PCs using Internet
service providers. However, an Indian caller still cannot call normal telecom
networks within the country from their PCs,” UPI explains. But now telecom
service providers can offer IP telephony, said Amitabh Singhal, former
president of the ISP Association of India.
Telecom itself is going gangbusters in India, the country’s
overall telecom subscriber base grew by 3.24 million in October, compared to
2.87 million new subscribers added in September. 5.3 million mobile subscribers
have been added since the beginning of September, for a total 67.95 million subscribers
by the end of October.
…
And as if they didn’t have enough problems over there, France Telecom on Wednesday “was fined record high 80 million euros
by the country’s Competition Council for monopolizing the ADSL broadband
service during the period of 1999 to 2002,” the French
media reported.
The council ruled that the French Telecom giant had “impaired
the nation’s economy by abusing its dominant position in Asymmetrical Digital
Subscriber Loop service to prevent other telecom companies from entering the
broadband market till October 2002,” the French newspapers La Tribune and Les Echos
reported.
France has 80 million ADSL users, with France Telecom owning
the lion’s share of that.
In 1999, according to media reports, “a French telecom
company NEUF Telecom lodged a lawsuit against the France Telecom, accusing the
telecom giant of monopolizing the ADSL market by lowering the broadband service
price, which forced other companies to withdraw from the market due to lack of
profits.”
In May 2004, the Competition Council fined France Telecom 20
million euros after the company refused to open the network service to
third-party operators. The fine was later doubled under the decree of the Paris’
court of appeal. Evidently France Telecom made more money keeping their lines
closed than they had to pay out in fines.
…
Measat Global has purchased a namesake
satellite from Orbital sciences for telecom
coverage of Malaysia, Indonesia and points as far away as the Middle East,
according to UPI.
A report in Malaysia’s Edge
Daily said Friday the transaction for the Measat-1R spacecraft was “valued
at nearly $70 million” and would give Measat C and Ku-band coverage and 36
Megahertz of bandwidth for 15 years.
Company officials said in a news release that the deal was
prompted by growing demand for leasing on the Measat-3 satellite and the
looming need to replace Measat-1.
…
This past week 32
Iowa communities voted on municipal communications proposals.
On Tuesday, the communities voted whether to form telecommunications utilities
that could offer phone and Internet services, according to the Des
Moines Register: “All seven of those cities served by Newton-based Iowa Telecom defeated the proposals. A
total of 17 Iowa communities passed them.”
Guess Iowa Telecom’s doing a pretty good job with rural
high-speed Internet access via DSL, seeing as how they added 4,600 DSL subscribers
over the summer, offsetting declines in their basic landline customers. The
company served 260,700 total telephone access lines, compared with 265,500
lines in the third quarter of 2004, the Register
says.
…
In more good news of companies realizing that cutting rates
actually increases bottom-line profits, government telecoms in Taiwan and
Jordan will slash rates – albeit for one day only in Jordan’s case.
Taiwan’s Chunghwa Telecom will cut rates for calls made from mobile phones to fixed-line phones
from the start of December.
The cuts will range from 3% to 15% with Chunghwa Telecom
mobile phone clients expected to save a total of $23.8 million a year,
according to Asia
Pulse.
And according to MENAFN, Jordan
Telecom will cut prices of local and international calls by 50 per
cent until 9:00 p.m. Saturday to “help our brothers and sisters who want to
comfort themselves about their loved ones... and who now want to reassure their
friends and relations in all parts of the world,” according to a company
official.
The telecommunications group affirmed its “confidence in the security and stability
of Jordan,” adding that it intends to “stand by Jordan and its good people
through thick and thin,” according to a company statement alluding to the
recent al-Qaeda terrorist bombing of three Amman hotels.