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FCC Rules Telcos Need Not Provide Naked DSL 314

Devistater writes "Despite at least four states' laws to the contrary, the FCC has ruled that phone companies need not provide naked DSL service to customers, but can require bundling; for example: Voice and DSL. FCC Commisioners Copps and Adelstein say in dissent 'In this decision, the Commission unwisely flashes the green light for broadband tying arrangements.' 'If it is [ok] to deny consumers DSL if they do not [have] analog voice service, what stops a carrier from denying broadband service to an end-user who has cut the cord and uses only a wireless phone? What prevents a carrier from refusing to provide DSL service to a savvy consumer who wants stand-alone broadband only for VoIP?'"
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FCC Rules Telcos Need Not Provide Naked DSL

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  • by MyLongNickName ( 822545 ) on Sunday April 03, 2005 @06:12PM (#12129127) Journal
    ... I'd like to get my party back. Trampling on State rights is definitely not. If you are still voting Republican because of their "conservatism", I'd like to ask you how your lobotomy went.
    • by turnstyle ( 588788 ) on Sunday April 03, 2005 @06:59PM (#12129420) Homepage
      I'd totally love to dump my craptacualar tel-co (in my case Verizon), but still keep my DSL line, and jump fully into VoIP.

      I'd gladly dump my phone servive, and pay a fraction of the money I would save toward better bandwidth.

      The only remaining advantage of POTs is that it has its own power (when we had the blackout here in NYC, the landlines kept working).

      We paid for this infrastructure held by this monopoly (or, baby monopolies), and it seems only fair that we should get better service from it (or, them).

      • I'd totally love to dump my craptacualar tel-co (in my case Verizon), but still keep my DSL line, and jump fully into VoIP.

        I can only hope the UK don't follow suit - Currently I have a DSL line from BT which requires me to have a POTS line too. I understand that OfCom (the UK version of the FCC) was supposed to be forcing BT to supply naked DSL some time last year but I've heard nothing more about it... A real shame coz VoIP call charges are about the same as BT's but without the monthly subscription.
    • by Chanc_Gorkon ( 94133 ) <gorkon@gmai[ ]om ['l.c' in gap]> on Monday April 04, 2005 @12:05AM (#12131014)
      Actually I think they made the conservative decision and that is that they DON'T have to provide you ONLY DSL. They have the right to say you must use a land line phone in addition to DSL. The non conservative one would be to sell naked DSL...which has all the requirements of a regular phone line as well as some other things too. Why should the telco have to setup everything as if you'd use voice and DSL (which I gather has to be done on most systems just to GET DSL) if you were not required to use the voice? How is this trampling on states rights? Last I checked, most phone companies contained many states which means to have anything consistent from state to state it needs a federal mandate.
  • by Stevyn ( 691306 ) on Sunday April 03, 2005 @06:14PM (#12129144)
    Take cable television. I'd prefer not to waste my money on the 50 garbage channels and just pay for the several I actually watch. However, I have to pay for packages instead of an al la carte scheme.

    As for telephone service. I don't have a land line. I have a cell phone and internet from my cable provider. If my internet came from Verizon through DSL, I could be forced to buy a service just to have internet.

    I don't know how much the government should regulate businesses like this, but if you only have one broadband provider in your area and they want to hit you up for more services than you want, there's not much you can do about it.
    • I'd prefer not to waste my money on the 50 garbage channels and just pay for the several I actually watch. However, I have to pay for packages instead of an al la carte scheme.

      In the US we call that Satellite.

    • by torinth ( 216077 ) on Sunday April 03, 2005 @06:41PM (#12129329) Homepage
      Cable network bundling is something that your cable provider is confronted with, not just you. Content providers sell groups of channels together. This helps them launch new channels by leveraging the value of large established channels. New channels get guaranteed wide-availabilty and can get noticed by channel surfers who wouldn't otherwise hear about them. In turn, advertisers are made more comfortable about advertising on the channel, and the cost of launching it can get subsidized. Without that kind of bundling, launching a new channel would take an enourmous capital expenditure and we wouldn't have the 300+ niche networks that we have now.

      Anyway, the point is that cable network bundling is a completely different ball of wax from the kind of service bundling mentioned in the article.
      • by Otterley ( 29945 ) on Sunday April 03, 2005 @08:02PM (#12129777)
        You're absolutely correct.

        However, the following question bears asking: Why should media companies be allowed to shift the burden of risk involved in starting a new channel from themselves to their customers? This seems like an economic distortion to me. It seems more reasonable that if the channel is really worth watching, the company launching it would put compelling content on it, then to drive up demand, it would launch a media marketing blitz.

        There's no reason the public should have to subsidize others' risk taking.
    • Comment removed (Score:5, Informative)

      by account_deleted ( 4530225 ) on Sunday April 03, 2005 @06:45PM (#12129353)
      Comment removed based on user account deletion
      • The problem with this is that, unless I'm missing something, there is a very good technical reason for cable companies to bundle channels. At least with good ol' analog cable, the only way to restrict people to certain channels is with filters, and it just isn't feasible to put filters on someone's line so they only get channels 3, 8, 14, 23, 25, and 50.

        Now with digital cable and the required decoder boxes, this reason probably isn't as valid any more, since theoretically they could program everyone's box
    • by foxtrot ( 14140 ) on Sunday April 03, 2005 @06:51PM (#12129385)
      The sick thing is: If you watch four or five cable channels, you'd probably wind up paying more a-la-carte.

      The cable company doesn't bundle channels to get you to buy ones you don't want. They bundle channels to get a package to a price where they actually make money on the deal after all the infrastructure costs on just feeding you a fairly basic service.

      If channels were pick-and-choose, for one, everyone now has to have a cable box (well, with digital, that may happen anyhow...), so zing, $5/mo/tv more, plus they have to make a certain amount of money off you, so the channels cost more-- think in terms of what the "premium" channels cost; the HBOs or Skinemaxes. Pretty much all channels would have to cost that much.

      It's not so simple as "I get fifty channels for fifty bucks a month, so obviously each channel costs a buck!"

      With DSL bundling, it works out similarly. There's an infrastructure cost in all the copper, and the intent was to sell it all as phone lines. I buy a phone line from Bellsloth, but I'm buying DSL from SpeedFactory. Now, if I could get unbundled DSL, then SpeedFactory would probably have to pay more to Bellsloth for the line (since Bellsloth has to recoup that cost somehow) and that comes back to me. But here's the real problem: Giving you voice communication service costs Bellsloth approximately _zero_. So if Bellsloth is going to recoup the investment on the lines they've run, they're going to have to charge Speedfactory just as much for the naked DSL line as they charge me for voice communications. And, as we know from economics, Speedfactory is going to pass that charge along to me, plus probably a small amount-- so I'm betting naked DSL would cost me _more_ than the setup I currently have.

      And this way if the house burns down I can call 911...

      -JDF
    • The Bush administration's Dept. of Justice has
      announced that all is forgiven to AT&T (Ma Bell),
      in keeping with the non-penalties involked against
      MSFT in their anti-monopoly lawsuit.

      The regional (baby) "Bell" telcos have just
      announced a conference during which the telcos
      are expected to plan their re-merger.

      The FCC has just announced that the television
      and radio media conglomerates will now be
      permitted to own up to 100% of any given market.

      The FCC and the FTC have just come out in a joint
      declaration th
  • by Nom du Keyboard ( 633989 ) on Sunday April 03, 2005 @06:15PM (#12129154)
    I hear another court case in the offing.
  • by Cryofan ( 194126 ) on Sunday April 03, 2005 @06:15PM (#12129158) Journal
    I guess most people, even most geeks, do not realize that this is really the most important technology fight we have in front of us. Cheap broadband is absolutely necessary for us to move forward.
  • Missing The Point (Score:5, Insightful)

    by NBarnes ( 586109 ) on Sunday April 03, 2005 @06:15PM (#12129159)
    'what stops a carrier from denying broadband service to an end-user who has cut the cord and uses only a wireless phone?'

    Nothing, that's the point.

    'What prevents a carrier from refusing to provide DSL service to a savvy consumer who wants stand-alone broadband only for VoIP?'

    Nothing, that's the point.

    I swear, it's like you people have never even heard of monopolistic pricing and captive regulatory agencies.
    • Re:Missing The Point (Score:3, Informative)

      by Tony Hoyle ( 11698 )
      We have this situation in the UK. You simply cannot have DSL without a phone line, and you can't compromise with a 'dial in only' one either.. it must be a proper one with all the rental cost etc. (which admittedly isn't large but pushes up the price of DSL).

      Having DSL also disqualfies you from all the 'low user' rebates even though you never make calls or use the analogue line at all.

      As far as 'cutting the cord' goes, that's not possible unless you're lucky enough to live in a cable area (cable is very
  • competition (Score:2, Insightful)

    by Anonymous Coward
    The answer to... what prevents a carrier from refusing to provide DSL service to a savvy consumer who wants stand-alone broadband only for VoIP? ...

    is CABLE. ain't competition great?
    • umm Insightful? Sure um ok. Well cable providers provide ...... cable TV? ummm well ya they do don't they. So you think that they will give you internet with out TV, try it out, good luck.
  • Because... (Score:2, Interesting)

    by Anonymous Coward
    In general f(a+b) != f(a)+f(b).

    In this particular case, a and b are services, and f is the cost function. Apply the result and you get your explanation.
    • Re:Because... (Score:3, Informative)

      by Thu25245 ( 801369 )
      But shouldn't f(a) < f(a+b) ? Assuming some nonzero b?

      Right now my bill is something like $20 for a landline and $45 for DSL. If I didn't use the landline, should I still have to pay $65? Even $55 or $60 for DSL-only would be an improvment over the course of a year.

      I'd be happy if they broke it down into some f(a+b+c), for some a (cost of running a line out) b (cost of providing voice over that line) and c (cost of providing high-speed data over that line.) Then I could pay f(a+c) and be perfectly hap
    • by timeOday ( 582209 ) on Sunday April 03, 2005 @09:43PM (#12130377)
      Oh, please, let's not pretend actual costs and telecom have anything to do with each other. These are the guys who charged us thousands of dollars over the years for a simple telephone, because they wouldn't let you buy one at the store and plug it into their precious network.
  • by Anonymous Coward
    Does anyone care that the head of the FCC took home over $1.3million dollars in bribes from telco companies? NOOOooooo

    Call it what is is powell, bribed to do what the telcos want. loser
  • I have 2 DSL lines that are not tied to any phone numbers. I still have my analog line, but I am researching VoIP, but not ready to jump yet. What happens to me? I wonder if they can take it away? or am I grandfathered in.
  • who (Score:5, Interesting)

    by eobanb ( 823187 ) on Sunday April 03, 2005 @06:21PM (#12129197) Homepage
    Whose interests exactly is the FCC protecting besides big corporations? The FCC should be working in the interests of American consumers, and they are so obviously not doing this. These all-or-nothing strategies are being used by more and more megagiants like SBC and leave users with little reason to use, for example, VoIP, even though it's about three times cheaper than SBC's phone service. Thanks a whole fucking lot.
    • Re:who (Score:3, Interesting)

      by stratjakt ( 596332 )
      The FCC should be working in the interests of American consumers

      The FCC has nothing to do with the American consumer. They don't control the price of black eyed peas at the supermarket or get to set the prime lending rate.

      They ruled based on law, they couldn't find anything in the law that would prevent the bundling of services.

      Bitch to your congressman, support some consumer advocacy and awareness groups.

      Spouting off about how 'evil' the FCC is, just makes you look like yet another asshat who slept
  • ...that we are in this mess because the government decided to meddle a long time ago, and there are no easy answers.
  • by cperciva ( 102828 ) on Sunday April 03, 2005 @06:26PM (#12129233) Homepage
    Most of the cost of providing phone or DSL service isn't the day-to-day operational cost; it's the cost of running the physical copper cable in the first place. I don't know if the figures are still the same, but at one point it took phone companies 5-10 years to recover their cable-laying investment on new subscribers.

    When ADSL first became popular, it was cheap for a very simple reason: Everybody already had a phone line, so the marginal cost of ADSL was merely the cost of the terminating equipment. The physical link was already being paid for out of the phone bill. Take away the landline phone service, and the ADSL cost jumps sharply, since it will now have to cover the formerly "free" copper wiring.

    DSL simply doesn't make economic sense without attached landline phone service.
    • DSL simply doesn't make economic sense without attached landline phone service.

      That's funny because cable companies think otherwise. Did you know that cable companies actually have to put a physical device on the line to stop the analog cable TV signal from coming through when you have naked Broadband?

      Seems like an especially steep cost to cable companies because the wiring is most definitely not there to begin with.

      I wonder why it is good economic sense for a cable company but not for a phone compan

      • Most cableco's give you a "discount" on their ISP service if you also have a minimum tier of tv with them. In many cases, it works out to be a wash - the price of the minimum tier is equal to the discount.

        That said, in my experience the cable discount is $10-$15. While the total cost of a voice-line, even the absolute cheapest possible one, after all the fees, taxes and whatever else nickle-and-diming, is somewhere in the $25-$35 range.

        So, telcos - sell us naked dsl, put a line-cost-recovery fee in ther
      • That's funny because cable companies think otherwise. Did you know that cable companies actually have to put a physical device on the line to stop the analog cable TV signal from coming through when you have naked Broadband?

        Which explains why TW/RR in Columbus charges $X for broadband if you are already paying for cable TV and $X + $Y for broadband alone where $Y is the cost for basic cable TV. It is probably cheaper for TW to just charge you for the basic cable TV anyway rather than futz with installi
    • by dissy ( 172727 ) on Sunday April 03, 2005 @07:06PM (#12129470)

      > Who pays for the copper?

      Our tax dollars did when the govt gave the bells tons of money in exchange for keeping the lines a common carrier to share.

      Tis a shame the phone co's never lived up to their end of the deal, and the govt backed down and let them.

    • So my 71 year old house that has had phone service since it was built... has already paid for the damn copper pair.

      If I go broadband cable and don't want TV service I get $10 ding on my bill for "cable access"

      If I go DSL every provider in the area says no DSL w/o voice service unless you go for the business grade DSL that starts at $100/month. ..!.. FCC, thanks for the ass pounding without the complimentary reach-around.

  • by iammaxus ( 683241 ) on Sunday April 03, 2005 @06:28PM (#12129243)
    Competition. Can someone explain to me how this is different than any other situation where a company might do something unfair to its users?
    • Some [64.233.183.104] people do not have access to other broadband services like cable. Wireless might be an option, but it is expensive, and prices for those services are not likely to come down any time soon.
    • by ClarkEvans ( 102211 ) on Sunday April 03, 2005 @06:44PM (#12129347) Homepage
      The 'pro-business' lobby here forgets that the cable and phone companies are usually monopolies in the area -- either by mandate or by de-facto policies.

      Both phone and cable companies need to get a 'leeway' to lay cable or overhead lines across everyone's property. This isn't taken lightly, and isn't done for every company that comes-along claiming they want to do it. Furthermore, both cable and phone are essential for emergencies, and thus must have universal coverage. The idea that this is (or should be) in any form a competitive marketplace is... well, misinformed. The bottom line is, it is most efficient to have a _single_ set of cables and wires, not N sets for various hodge-podge company policies.

      The problem here is that a for-profit company owns these wires. It's a farce. Really, the local governments should own the wires and contract out the work and the companies that want to 'run' the services over the wires. To do this correctly, we need a completely different legal environment that recognizes natural monopolies and makes them not-profit and as _small_ as possible to enable the _greatest_ amount of competition for auxiliary services.

      But, given the current setup, strict regulation is the only answer. Regulation is, BTW, what allowed the whole open-source movement to take-off; in the 70's Ma-Bell (AT&T) wasn't allowed to sell its software, so it gave away enormous IP to the public. This is how Unix came about. The regulation was proper back then, the government realized that the phone was a monopoly, and prevented the phone company from entering other markets (using its monopoly money to distort other market places). Unfortunately, that sensibility started to disappear with the so-called "pro-business" agenda in the 80's and 90's.
  • by stratjakt ( 596332 ) on Sunday April 03, 2005 @06:29PM (#12129245) Journal
    Just policy based on law, and based on the mandate given them by congress.

    That is to say, write your congressman if you have a beef, don't sit around whining about how much of an asshole you think Powell is.

    That's like bitching about the judge who sends you up the river for selling pot, or the cop who busted. They just interpret and enforce the law, they don't write it.
    • Huh? That's just plain wrong.

      The FCC absolutely can make law, when the ability to do so has been delegated to them by the Congress. If you break an FCC regulation that says "you cannot broadcast on this frequency," the fine you get is going to be just as enforceable as if Congress had said it itself.

      Note that Congress can't just delegate naked power -- they have to give guidelines for doing so, and the agency cannot go beyond those guidelines. Effectively, Congress sets the policy and the FCC creates l
    • writing your congresswhore only works if you're complaining about "our childrens innocense" or any other thing they can use politicaly to grandstand for votes. Otherwise whatever real opinions you have... dont mean shit and end up in the trash courtesy of their intern's intern's intern's newphew's former roomate.
  • by krunk4ever ( 856261 ) on Sunday April 03, 2005 @06:31PM (#12129257) Homepage
    switch over to cable broadband then.
    • I did think of that. The local cable company (northern Baja California) requires me to purchase a TV channel package in order to get their broadband internet. So it works out just as expensive as phone+dsl.
  • by lseltzer ( 311306 ) on Sunday April 03, 2005 @06:38PM (#12129300)
    Note that this ruling does not prevent CLECs like Covad and their ISPs, like Speakeasy.net [speakeasy.net], from providing naked DSL service. I have this service from Speakeasy. They call it OneLink and I'm no longer an explicit customer of Verizon on that line, although Speakeasy still kicks a few bucks a month back to Verizon; it is their wire and their CO I suppose.

    But in the end I have all my services, including VOIP, through Speakeasy.net thanks to naked DSL.
  • They're called "Código de defesa do Consumidor", or "Consummer defense Code".And it states that no one can couple some product to another.

    For example, if you're going to open a bank account the bank can't say that aquiring a credit card is a pre-requisite. Or if you're going to buy a car the reseller can't say that buying the insurance from company X is a pre-requisite.

    It's indeed a very nice law... when correctly enforced. Unfortunetely our major DSL provider (Telemar) couples the service to an account on a "internet provider". This is of course nonsense, since the real conectivity provider is Telemar itself... but yet they still require such account. The worst part is that NONE of the so called "internet providers" has full Linux-compatible media content...
  • What I have to question in this debate is, what prevents the consumer from making other choices to better suit their needs? I'm sorry, but in geneneral (metro/suburban areas), DSL is not always the best choice for high speed internet. For myself, living in the suburbs of Seattle, DSL sucks and cable modem was a much better service. And if I didn't have cable, it would have only cost me another $10/mo, which seems more than reasonable.

    What I mean to say is, for the most part, the open market will dicta
  • A short answer... (Score:3, Interesting)

    by frank_adrian314159 ( 469671 ) on Sunday April 03, 2005 @06:42PM (#12129335) Homepage
    ... what stops a carrier from denying broadband service to an end-user who has cut the cord and uses only a wireless phone? What prevents a carrier from refusing to provide DSL service to a savvy consumer who wants stand-alone broadband only for VoIP?

    Nothing.

    Why would you think that the FCC cares about the public interest anymore? That line of thought is so old school. Especially when there are corporate interests to protect. And I wouldn't expect the House or Senate leadership to help you out much here - last I heard Billy Tauzin's still cutting deals as a lobbyist for telecom interests on the side (when he's not carrying the bag for pharma or entertainment industries).

  • by koreth ( 409849 ) on Sunday April 03, 2005 @06:45PM (#12129358)
    On March 4, 1789, "Founding Fathers" wrote:
    >The powers not delegated to the United States by the Constitution,
    >nor prohibited by it to the States, are reserved to the States
    >respectively, or to the people.

    Fuck you.

    Sincerely,

    -FCC

  • They work for the present presidential administration. They only hand down rules what Bush wants ; that is to help out the biggest campaign contributors.
  • by Anonymous Coward on Sunday April 03, 2005 @06:51PM (#12129386)

    If you bothered to read the ruling and not the opinion piece, you would know that the ruling merely tells the States to butt out and stop trying to enforce rules that conflict with existing FCC unbundling rules. This rules removes the conflict between FCC and State rules.

    Under the existing FCC rules, the encumbant Telco is not required to offer DSL even if your lines are capable of providing it (they do it because its profitable). BellSouth had a policy of not offering DSL if the local loop was being used by a competitive telco to provide analog voice service. Probably due to techincal and billing issues. Some states were trying forcing BellSouth to provide DSL anyway. This was illegal.

    This ruling does not automatically mean that the telco will refuse to provide DSL unless you buy voice service from them. In reality, what you'll probably see is the telco providing discounts for getting both DSL and voice service from them. Like Verizon offering cost saving bundles for home and wireless.

  • The FCC is hoping that residental broadband adds a competitive player coming out of left field -- some form of wireless, power-line, etc. The business case for new companies becomes easier if the FCC lets cable and Baby Bells pursue agendas that alienate early-adopter consumers. Historical example is satellite TV: if cable companies were forced by regulation to provide a good customer experience, DirectTV would have never made it beyond the rural marketplace.

  • This story actually shocked me that it's even an issue. In Canada it's pretty much a given that since your DSL comes over the phone line, you'd have to have an active phone line to get it.

    Where I live (smaller area), there's two broadband providers. The phone company, SaskTel, who requires you to have a voice line, and Shaw, who requires you to have basic cable.
  • Propping up... (Score:4, Insightful)

    by Dan East ( 318230 ) on Sunday April 03, 2005 @07:09PM (#12129486) Journal
    This is nothing more than a tactic to prop up telco providers because their bubble is about to burst. Given the massive amount of market that cell carriers have already taken from them, large-scale VOIP on the horizon, and competing broadband options (cable for example), it is only a matter of time before their business model fails entirely.

    If there's anything that governments are good at doing it's maintaining the status quo. Whether we're talking about an economy that relies too heavily on oil, or something as (seemingly) innocuous as telephone service, governments will always fight against fundamental change or market shifts because it will result in a period of instability.

    There's a reason why the connectivity linking the telephone in my house to the telephone system is the same as it was five decades ago when my dad was born (hint - it has nothing to do with free-market or competition).

    Dan East
  • As I see it, the solution to this is wireless. The phone company only has a monopoly because they happen to own the line going to your house, and it is cost prohibitive for a competitor to string their own. Wireless neatly gets around this issue.
  • ...this could be a win for cable. Since forever, every cable operator I've worked for has been only too happy to provide cable modem only and let the customer pick DBS if they want. I can pick and choose or bundle however I like and they've always been of the mind to have this. For the phone companies to fight so hard for something that is only going to bite them in the arse with the public is grossly stupid, but I am not surprised since this is the telcos we're talking about.

    Meanwhile I freely choose a
    • But MOST PEOPLE DON'T have that much to spare. The fact is that the cable and telcos are PROFITEERING using a monopoly granted them by the state.
      Why is it that muni wifi goes for next to nothing? Because the actual costs are not that graet to provide broadband.

      And the politicians have been bought off by the telcos and cable cos.

      I say they all need to get some time in jail.

  • by Jackie_Chan_Fan ( 730745 ) on Sunday April 03, 2005 @07:35PM (#12129631)
    GOAL! GOAL! GOAL!

    Did you expect the FCC to side on the position of the consumer, the tax payer? HAHAHAHAHAHAHHA SUCKER.

    Damn it.. wheres that boat with the fucking tea on it... i know its around here somewhere.

    Burn the FCC down.
  • by rtphokie ( 518490 ) on Sunday April 03, 2005 @08:30PM (#12129967)
    Complain to the FCC here [fcc.gov] and then write your Congressional representatives (figure out who your representatives are here [congress.org]. If you cant take the time to figure out how to do this properly, then you must not care that much.
  • by melted ( 227442 ) on Sunday April 03, 2005 @09:37PM (#12130340) Homepage
    Next thing you know, they'll sue a certain aged woman for showing her boob on TV in prime time. What the world is coming to?

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