Maryanne Morrison

1
Group 4

• Maryanne Morrison
• Cindy King
• LaQuant Bain
• Michael Shumate

2
DIGITAL SUBSCRIBER LINES

• DSL is a service that offers a faster internet
  connection than a standard dial-up connection.
• DSL technology uses existing 2-wire copper
  telephone wiring to deliver high-speed data
  services to home and businesses.
• www.internetweek.com/story/INW20010222S0004

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What is DSL?

• DSL uses the existing phone line and in most
  cases does not require an additional phone line.
  This gives always on Internet access and does
  not tie up the phone line.
• DSL offers users a choice of speed ranging from
  144 Kbps to 1.5 Mbps. This is 2.5x to 25x time
  faster than a standard 56Kbps dial-up modem.

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DSL Speed

• Over any given line, the maximum DSL speed is
  determined by the distance between the customer
  site and the Central Office.
• Symmetric DSL (SDSL) data services offer speeds
  that vary from 144 Kbps to 1.54 Mbps and now even
  faster up to 6.0 Mbps to meet all customer needs.
  
• www.everythingdsl.com/howfast/

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DSL Connection

• At the customer premises, a DSL router or modem
  connects the DSL line to a local-area network
  (LAN) or an individual computer.
• Once installed the DSL router provides the
  customer site with continuous connection to the
  internet and use of telephone at the same time

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Current DSL Cost

• DirecTV is offering a 6 month offer for 39.99
  and after the 6 months it is 39.99 a month
• Covad has a regular price of 74.95

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DSL Benefits

• Always-On Service
• Phone/Internet Simultaneously
• Up to 25x Times Faster than Dial-up Modem
• Cost effective
• No more busy signals

• No more dropped connection
• Faster Downloads
• Multiple Computers on Single DSL line
• Dedicated Connection Speed

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FAQ

• Can I convert an existing line to DSL or do I
  need a new line?
• Answer-In many cases you can convert. In some
  case s a new line has to be installed because of
  load coils or other DSL unfriendly devices.

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FAQ

• Are there applications that do not work well over
  DSL?
• Answer-Yes. Some type of two-way video
  conferencing and other sustainable high-bandwidth
  transfers do not work well on DSL because the
  flow of data from theses applications is
  packet-based

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FAQ

• What limitations or restrictions are there for
  DSL?
• Answer- The DSL end-users must be located within
  three cable miles of a DSL equipped serving
  office in order for DSL to operate effectively.
  This distance will vary depending on the specific
  type and condition of the telephone lines.

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FAQ

• What are the different types of DSL?
• Answer- There are several different types of DSL
  available and which service you get depends on
  your location
• ADSL, CDSL, G.Lite or DSL Lite, HDSL, IDSL,
  RADSL, SDSL, UDSL, VDSL, x2/DSL

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FAQ

• What hardware do I need to use DSL?
• To use DSL you need at least a DSL modem or a
  router with a built in DSL modem and a Network
  Interface Card. You also need a POTS splitter in
  order to use POTS service if the telco you choose
  provides it.

13
DSL Failures Illustrate Telecommunications Act
Problems

• The legacy of the Telecommunications Act of 1996
  now includes not only spectacular bankruptcies,
  but also indications that it has hampered the
  competition it was supposed to spur.

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Covad Communications

• Which was the last of the Big Three nationwide
  wholesalers of DSL service the week of August 5,
  2001 said it plans to reorganize under an unusual
  prenegotiated agreement with bondholders in
  which it will swap 1.4 billion in debt for 19
  cents on the dollar and a 15 stake in the
  company

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The Deal

• Including Chapter 11 bankruptcy petition for its
  parent company, Covad Communications Group, comes
  on the hells of DSL player Rhythms
  NetConnections bankruptcy and shutdown starting
  this week, and the shuttering of NorthPoint
  Communications in January.

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DSL Providers

• The are only the latest group of Bell
  alternatives to turn up broke, adding their names
  to a list so long that some observers are placing
  blame on the Telecom Act. The law opened
  competitive floodgates, but lacks a meaningful
  enforcement mechanism. So the regional Bells
  have remained dominant while they ramp up new
  services

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FCC vs. SBC
http//www.internetweek.com/news0199/news012899-3.
htm
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Overview of Case

• After the Telecommunications Act of 1996, SBC
  were to lease lines to emerging competitors,
  including long distance providers ATT and MCI
  WorldCom
• In 1997, SBC filed suit against the FCC. SBC
  claims the 1996 act is unconstitutional because
  it prohibits regional Baby Bells from offering
  local phone service monopolies to competition.
  (The SBC filed its suit one week after the FCC
  barred the company from offering long-distance
  service in Oklahoma.

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On the Right Side of the Ring

• SBC
• provides comprehensive telecommunications
  products and services through a global network of
  leading brands and operations in the U.S. and 28
  other countries around the world.
• Wants justice on discrimination against the six
  bell companies entry into the long-distance
  telephony market as opposed to independent local
  telephony companies, such as GTE Corp.

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On the left side of the Ring..

• The Federal Communications Commission is an
  independent United States government agency,
  directly responsible to Congress.
• Established by the Communications Act of 1934 and
  is charged with regulating interstate and
  international communications by radio,
  television, wire, satellite and cable.
• The FCCs jurisdiction covers the 50 states, the
  District of Columbia, and U.S. possessions.
• Wants to open market up to competition (regulate
  ceiling prices

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Ruling of Case SBC Shot Down

• On January 21, 1999, the U.S. Supreme Court shot
  down SBCs Communication petition and reaffirmed
  the Federal Communications Commission as the
  authority for setting a ceiling for phone-service
  prices.
• However, the court upheld the Bells challenge to
  the FCC unbundling rules.

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Unbundling Rules

• Requires the incumbents to separate previously
  combined elements to their networks and let
  competitors recombine those elements in new
  contracts at below-market costs.

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FCC Adopts Unbundling Rules

• On January 15, 1999 the FCC Adopted Unbundling
  Rules
• the Commission reaffirmed that incumbents must
  provide unbundled access to six of the original
  seven network elements that it required to be
  unbundled in the original order in 1996

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Penalties for Noncompliance to 1996
Telecommunications Law

• A fine already established
• However, the fines are thought by some people to
  be inadequate for big companies (Verizon, SBC,
  BellSouth, and Quest Communications)
• 2001 bill to fine carriers 1-10 million for each
  violation and double payments for repeat
  offenders.

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Overview

• Telecommunications Act of 1996 forced large phone
  companies to lease wire lines to make room for
  competition
• SBC files lawsuit
• FCC won case but had to write unbundling rules
• FCC Fines for noncompliance to unbundling rules
• Large companies pay fines but keep violating
  rules

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Bell vs. Competitors
http//www.internetweek.com/story/INW20010517S0001
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• The Internet freedom and Broadband deployment Act
  known as Tauzin-Dingellbill
• This bill was known for its chief sponsors Billy
  Tauzin House Commerce Committee Chairman, and
  John Digell Ranking democrat on the committee.

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• A bill designed to promote faster deployment of
  high-speed Internet, which allows customers to
  process data, receive data, and faster internet
  access.

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• But this act will have the opposite affect
  because it will allow Regional Bells to keep
  their monopolies, and grow into a larger and more
  profitable company.

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• This legislation lifts requirements on Region
  Bell carriers to open their local lines before
  they can offer long distance service.

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• These Monopolies contributed to Bells controlling
  over 90 of local phone market
• Prices are up 48
• Service complaints have tripled

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Bells Gain a Foothold

• On Wednesday May 10, 2001, The House Energy and
  Commerce Committee passed a controversial bill
  that is designed to encourage high-speed Internet
  access by freeing the Bell Companies of
  market-opening regulations.

http//www.internetweek.com/story/INW20010510S004
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Bells Gain a Foothold

• The Bill known as The Internet Freedom and
  Broadband Deployment Act, H.R. 1542, could
  transform the Internet market by encouraging the
  Bells to deploy high-speed Internet over digital
  subscriber lines faster because the regional
  carriers would be relieved of regulations that
  sometimes dampen investments.

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Bells Gain a Foothold

• Some critics have said that the Bill would mean
  death for many new data exchange entrants, not
  only because of a shrinking capital, but also
  because it would allow the Bells to move into the
  broadband market with their monopolies intact.

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Who are the Bells?

• The Bells were formed when the monopoly formerly
  known as ATT split.
• ATT dominated the telephone service industry for
  years.
• ATT divestiture in 1984 broke-up then into
  Regional Bell Operating Companies and now are
  known as RBOCs.

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Telecommunications Act of 1996

• The Telecommunications Act of 1996, changed the
  way in which telecommunication companies in the
  U.S. could operate.
• More competition between communication services.
• RBOCs were to provide long-distance service.
• Deregulation of cable television companies.
• Cable and Telephone companies combined in some
  areas.

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Telecommunications Act of 1996

• Under the act, regional phone carriers cannot
  transmit long-distance voice or data until they
  open their local phone market to competition.
• The Bill would allow the Bells to bypass that
  requirement to deliver broadband services, and
  also frees the Bells of the requirement to lease
  elements of their network used for High-speed
  Internet at wholesale prices.

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Opposition

• Many are opposed to the Bill, simply because the
  Bells would be gaining more than the opposition,
  which would create another monopoly for the
  Bells.
• Sprint General Counsel J. Richard Devlin was
  quoted as saying Competition in the marketplace
  in the key to quick and efficient delivery of
  advanced services to consumers, not more relief
  for the monopoly RBOCs.

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So What now?

• The Bill has a hard uphill fight in the House of
  Representatives.
• A similar Bill prevailed in the House a year
  before this Bill, but failed in the Senate,,
  which might possibly happen to this Bill.

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Some Interesting Web Sites

• http//www.house.gov/commerce_democrats/press/107s
  t.28.htm
• http//www.commdocs.house.gov/committees/judiciary
  .html
• http//www.thestandard.com/articlee.htm

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Maryannes Question

• List the benefits of DSL

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Cindys Question
Why did the SBC appeal the Telecommunications Act
of 1996?
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Laquants Question

• What is necessary for e-commerce and new Internet
  technologies to reach their potential?
•  

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Michaels Question?

• Name the four provisions allowed in the
  Telecommunications Reform Act of 1996?