FYI...

Margo Reyna
Regulatory Analyst
Enron Corp., Government Affairs
Phone:  713-853-9191

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		 Subject: Telecom Services: Information Services, U.S.: BELLS URGE FCC TO 
EASE SEC. 271 BARRIERS ON ...


BELLS URGE FCC TO EASE SEC. 271 BARRIERS ON INFORMATION SERVICES 
  
12/04/2000 
Communications Daily 
(c) Copyright 2000 Warren Communications News, Inc. All Rights Reserved. 
Congress made it clear that information services are exempt from regulatory 
restraints of Sec. 271 so FCC should ease its restrictions, Bell companies 
told Commission in comments Nov. 29. Bells urged agency to revise rules that 
have kept them from offering Internet access and other information services 
on interLATA basis. At very least, Quest suggested, FCC should allow Bells to 
offer information services when they lease transmission component from other 
carriers.
FCC is in definitional dispute over whether information services can be 
defined as "telecommunications services" -- and thus subject to Sec. 271 
barriers (CD Nov 29 p1). It has categorized them that way, which has kept 
Bells from offering information services across LATA lines. However, in 
response to court appeal by Verizon and Qwest, FCC asked for and got remand 
so it could reconsider issue. 
Qwest argued in its comments that definitions were clear: Telecommunications 
is defined in Telecom Act as transmission of information without changing 
form or content, and since information services change content, then can't be 
considered telecom. Fact that information services often include transmission 
components doesn't turn them into telecom services, Qwest said. At very 
least, Commission should rule that Bells can provide InterLATA information 
services if they don't use their own transmission component, Qwest said: 
"There is no theory under which the BOCs can be prohibited from providing 
these services when the transmission component is acquired from another 
carrier."
FCC initially ruled that ban on interLATA services didn't apply to 
information services, then changed its mind, Verizon said. Agency "had it 
right" first time and later decision "was inconsistent with the definitions 
in the Act," Verizon said. BellSouth agreed: "Because Congress neither 
defined the term 'interLATA service' to include 'information services' nor 
expressly included 'information services' in Section 271's prohibition, a 
BOC's offering of an information service using interLATA telecommunications 
does not implicate Section 271's prohibitions."
CompTel called Bells' arguments "self-serving," saying those companies have 
argued on both sides of issue in recent years, depending on whether it helped 
or hindered them. For example, CompTel said, BellSouth argued in 1997 that 
out-of-region interLATA services included out-of-region information services. 
CompTel said argument was made to gain exemption from separate affiliate 
requirement. Similar argument was made by Ameritech in another case, CompTel 
said. Assn. urged FCC not to let Bells stir up concerns of other Internet 
providers by saying issue could lead to regulation of all ISPs. "Congress 
intended to include `information services' within the definition of 
`interLATA services' in order to prevent the BOCs from abusing their local 
market power," CompTel said. -- Edie Herman 

Folder Name: Telecom Services: Information Services, U.S. 
Relevance Score on Scale of 100: 69

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