1. Wireline Post 1996
TC 310
May 20, 2008

2. But First... Questions From Reviews Who wants some extra credit?
Invisible Hand
Convergence
Economies of density
Direct v Indirect network effects
Cooperative federalism
Unitary and Confederation (democracies)‏
Who wants some extra credit?

3. Overview of 1996 Telecom Act
Amendment of 1934 Communications Act
Very broad, limited in scope
Competition Oriented
Enforceable

4. Deregulation of LEC 1984 Modified Final Judgment
Competition in LD and data services
Local is monopoly
Why?
1996 Act attempts to end monopolies period
ILECs vs. CLECs
Leased vs. Facilities-based competition
Big CLECs vs. mass market customers

5. Lifting of Restrictions
ILECs (BOCs) freed from Modified Final Judgment
Compete in long distance big prize
Have to convince FCC they are in accordance with sections 251 and 252 of 1996 Act
Specific checklist
Most detail in Act

6. Checklist Duty to interconnect
Duty not to impede network interconnectivity
Duty to offer resale services
Number portability
Local Dialing Parity
Access to Rights-of-Way
Reciprocal Compensation
Unbundle

7. But wait, there's more Collocation 911 services
ILECs (BOCs) must create affiliate company for other market
Section 252 states how to negotiate, mediate, get approval for previous requirements
ILEC then goes to FCC and asks to enter new markets (Section 271).

8. TELRIC Pricing Wholesale rates will be based on actual costs
Forward projections, not based on past
“Total Element Long Run Incremental Cost”
Not based on actual network, infrastructure
What would most efficient, brand new network cost
Verizon Communications Inc. v. FCC (2002)‏
Concerns about TELRIC
Slows innovation/upkeep
State Regulator guideline

9. Punishments Rescind 271 authorization
Prevent future marketing of long distance
Impose Fines
Which is most likely to occur pragmatically?

10. Jurisdiction Concerns
Does Dual model still work?
1999 AT&T Corp. v. Iowa Utilities Board
Section 251 and 252 imply federal authority to preempt.
Cooperative model
Distinction between intra and interstate dead
FCC creates general rules, States enforce, implement

11. Monopoly Concerns
Modified Final Judgment imposes line-of- business restrictions
1996 Act imposes statutory line-of-business restrictions
What is the difference?

12. Cross Platform Competition
1996 Act frees up regulatory grounds for cross platform competition
Internet Service
DSL, Cable, Satellite, Wireless
Phone Service
Traditional v. VoIP
Video Services
Broadcast, Cable,....telephone?

13. Why Important Fundamental paradigm shift regarding telecommunications
Law of the Land
What's next?
Applications of Act to actual scenarios
Struggles over authority