CompTel/ASCENT was formed in November 2003 by the merger of the Competitive Telecommunications Association (CompTel) and the Association of Communications Enterprises (ASCENT). With 350 members, CompTel/ASCENT is the largest association representing facilities-based carriers, providers using unbundled network elements, global integrated communications companies and their supplier partners.
X: As we approach CompTel/ASCENT Convention & Expo, what are the biggest issues the competitive service providers are facing?
Frisby: There are two pressing issues facing competitive service providers. The first issue is that the FCC’s policies have impaired wireline competition. The second is the economic fallout from the FCC’s anticompetitive policies. By that I mean financing, potential layoffs and companies stopping expansion.
X: What are your thoughts about AT&T’s move away from consumer services by deciding it will no longer be competing for residential local and standalone long-distance customers? What do these moves mean for the industry?
Frisby: AT&T’s getting out of residential was an inevitable result of the FCC’s policies. The FCC has walked away from intramodel competition.
X: Where do you think competition will come from in the consumer market?
Frisby: The real danger is there will be no competition in the consumer market. Some of our members are trying to participate with VoIP. That’s their only hope.
There’s been lots of focus recently on the FCC’s media concentration policies. More focus should be on the FCC’s fostering concentration in the telecom market. Within two years, the Bells could control the wireline, wireless and satellite markets, with the only competition being cable.
X: USTA and its allies like to talk about intermodal competition. How does CompTel/ASCENT view intermodal competition?
Frisby: I think it’s not there. The Bells are increasingly controlling the wireless market. If Cingular is allowed to buy AT&T Wireless, and Verizon is cleared to buy Qwest wireless licenses, the Bell share of the wireless market will be in excess of 70 percent.
In Texas, SBC ran afoul of DoJ antitrust guidelines.
The Bells are also major investors in the satellite market.
I don’t believe you can call a situation where the Bells control three of the four markets intermodal competition.
X: What are CompTel/ASCENT’s next steps on behalf of its membership?
Frisby: To continue to fight and be engaged in lobbying with the FCC, the Supreme Court, and the state and federal courts. And to educate our membership on alternative business strategies such as VoIP. We’re going to have a special program on the show floor called VoIP Showcase including member companies that offer VoIP products and services.
X: VoIP seems to be coming up a lot in this conversion. Do you see VoIP as the savior for the competitive telecommunications industry?
Frisby: VoIP is simply an IP-enabled application that rides over the broadband network. VoIP is the beginning, not the end.
X: Of course, the future of VoIP is questionable given potential regulatory rulings on the technology, which is now largely free of regulations. With the Sununu action in July and various developments at the state level, what are your thoughts on the direction that VoIP regulation is going?
Frisby: My reaction to the bill that was passed by the committee is mixed. IP-enabled applications like VoIP should not be regulated, but we question whether services like these should be subject to access charges. The better course of action would be to first fix the carrier compensation systems.
I should add that with VoIP legislation it is important to draw the line between IP-enabled services that should not be regulated and the underlying access that is controlled by the Bells.
X: What’s going on with the high-capacity loops? Any chance those will remain as UNEs?
Frisby: We’re hopeful high-capacity loops will remain. Loss of high-capacity loops would have a devastating effect to the competitive industry.
