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RE: Sprint's New ION products (fwd)

  • From: David Lesher
  • Date: Wed Jun 03 13:59:07 1998

Tom Walton sez:
> 
> The most troubling thing to me about the ION plan is that it
> seems to revolve around the idea of using LEC local loops to
> deliver service to home customers. The LECs are not going to
> be enthusiastic about providing an unbundled loop to
> facilitate being cut out of their long-distance termination
> fees. This could be a very slow roll for Sprint.

Count on SPRINT being their own CLEC; why would they give
away the gravy?  

> This problem will not become acute until they begin
> deploying residential service, as many/most business
> customers (the initial targets) will be "on-net" with CLECS
> who are already interconnected with Sprint. It might be that
> Sprint is hoping/praying for regulatory/statutory
> intercession before they try to penetrate the residential
> market en masse.

True. Sprint's legal muscle [irony; it's MCI that was oft-called
"The law firm with the antenna on top" not Sprint] may help
pry entry into COLO space in/near CO's, but that is far from a
universal solution. What about SLC[tm-Lucent]'ed lines, real copper
loops too long to be viable [know of several 40Kft ISDN loops],
offices with no COLO space, etc.

(And even when successful, that means a COLO cage in every CO in the
country....)

And *will* businesses want to go to all-metered calling? Outside
of NYC, Chicago, Gnu Joisy, Califunny {and any I don't know of..},
most US business POTS is flat rate or per-call, not per minute|bit.
So they'll split the difference; using Least Cost Routing to try
and guess which way is better. Buy PBX stock, and count on the
ILEC's fighting this tooth and nail, down to the last T-75 staple
and pole spike.

> I love the telecommunications business...

Amem, Brother....



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