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North American Network Operators Group

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Re: What do we mean when we say "competition?" (was: Re: [Latest draft ofInternet regulation bill])

  • From: Michael.Dillon
  • Date: Tue Nov 15 10:47:06 2005

> The RBOCs 
> should be split up into a wholesale *only* division (owns the poles, 
> wires, buildings,switches) and a services *retail* division (owns the 
> dialtone, bandwidth, customers ).   The wholesale division should 
> sell service to the retail division at a regulated TELRIC based price 
> which will allow the wholesale division to make enough money to build/ 
> maintain the best infrastructure in the world. 

This is more or less what BT has done in the UK by splitting 
off all the field engineering into a separate company called
Openreach.

UK already has had a thriving digital radio network and
digital TV network for several years. They are already starting
to shut down analog TV transmitters. We have lept ahead in 
deployment of broadband with a variety of providers in most
cities. Perhaps there are lessons to be learned here?

> More regulation of the physical infrastructure (the expensive piece) 
> and less regulation of the bits to foster competitive solutions and 
> bring along new innovations.   The future innovations are not going 
> to revolve around new types of fiber.  They will revolve around what 
> can be done with high bandwidth to everyone.

I doubt if even the RBOC executives understand this fundamental
distinction.

--Michael Dillon





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