ISP and CLEC Issues---Harm to Competition

New Networks Institute has done extensive research in the area of Competitive Issues,

  • ISP and Competitive Issues covers the competitive harm by the Bells to companies trying to roll out services.

 

SBA Joins TeleTruth in Defending Small ISPs and Criticizing Proposed FCC Broadband Rulings.

The FCC has proposed 6 inter-related broadband rulings that will essentially will harm small business telecom competitors, including Internet Service Providers,(ISPs) and Competitive Local Exchange Companies. (CLECs) and millions of their small business customers.

On August 27th, 2002, the Small Business Administration's Office of Advocacy filed with the FCC requesting that the Agency take into account the thousands of Small Internet Providers who would be harmed by these new rules.

This filing independently corroborates some of the findings of TeleTruth and New Networks Institute. In May 2002, TeleTruth filed Comments with the FCC pointing out that the FCC is in violation of the Regulatory Flexibility Act, which requires the FCC to do a small business mpact study.

 HARM TO COMPETITION

To Read the Report To Read the Press Release A Copy of the Report in Word

Internet Provider Issues

NNI has conducted Numerous surveys of ISPs, (Nationwide, and Kansas, Oklahoma, Massachusetts, New York, and Texas. Some of these were done in conjunction with the US ISP Alliance and CIX, Commercial Internet Exchange. The primary finding has been that Internet Providers have been receiving sub-standard customer services, that serious impact their ability to do business and offer competitive services.

  • To BE UPDATED --- NATIONWIDE 4th ANNUAL ISP SURVEY -- RELEASE DATE NOVEMBER 10th 2002.

 

In fact, various reports by both the FCC, and Department of Justice found identical problems.

One of the most egregious problems for ISPs has been that the Bell companies discount pricing to resell their services is Predatory and their behavior discriminatory. In two complaints filed with the New York State Public service Commission and the Attorney General's offices, we go through the issues and how it clearly shows harm to competitors trying to sell competitive products. The harm is also felt by the customer.

Harm to DSL Customers via the ISPs problems is also a serious issue. When an ISP can't deliver because of the Bell companies' failures, it is ultimately the customer that is purchasing the service that is harmed.

How bad is it?  ISP problems are happening in virtually ALL states. In a recent case, the Kentucky Public Service Commission found that BellSouth was harming a small ISP, Iglou, (this collection is from http://www.amlung.com/page4.html)

More recently, CISPA, the California ISP Association, has filed a formal complaint with the state claiming that the Pacific Bell/SBC. The press release headline says it all. "California ISPs File Complaint Against Pacific Bell, Charge Anti-Competitive Conduct - Remedies For Abuses Sought From State Regulators." The claim is that SBC/Pac Bell has given such as odious contract to the ISPs, that they have, en mass, refused to sign it.

A more technical discussion of the problems was filed with the FCC by CISPA) which commented that "Bells Favor their Affiliated ISPs in DSLAM Port Provisioning"