The FCC tries to derail the NII and BA does the right thing. One wonders if Washington knows where i

[David Farber <>]

     Bell Atlantic Files Waiver to Prevent ISDN Costs From 
                         Skyrocketing




WASHINGTON, D.C.--In an effort to keep the Information Superhighway 
growing,  Bell Atlantic late Friday asked the Federal Communications 
Commission (FCC) to set aside an order that would increase Integrated 
Services Digital Network (ISDN) prices dramatically.
        
Bell Atlantic said it is ready to roll out ISDN service for residential 
customers, but the recent FCC ruling will increase the cost of the 
service 20 to 30 percent.  Without a waiver, the company said, 60% of 
the potential ISDN consumer market will disappear.  ISDN uses a single
multi-channel, digital line to deliver voice, data and video services 
simultaneously.


"We are shocked the FCC mandated a new price structure," said Edward D. 
Young, III, vice president and associate general counsel for Bell 
Atlantic.  "We predict that, unless the commission adopts new rules:


*     not only will consumer demand for ISDN services drop,  but also
*     new business demand will be reduced up to 35%, and
*     up to 25% of existing users--who have already made a substantial 
      investment in ISDN equipment--will cancel their service.
        
"The Commission's existing rules are not designed for services like 
ISDN," Young said.  "Its ruling will kill the stampede to a valuable 
new service.  ISDN can provide consumers with a high-speed, digital 
on-ramp to the Internet and to an array of information services."




On Jan. 11, the FCC refused to allow NYNEX to restructure ISDN 
subscriber line charges (SLCs) to be more competitive with other 
carriers.  The SLC is federally mandated and is set annually.  The SLC 
is used to subsidize local telephone network costs, which helps to keep 
basic residential telephone service affordable.  The Commission ruled 
that separate SLCs should be billed for each ISDN channel; ISDN lines 
have up to 24 channels.


Several other carriers are billing SLCs per ISDN line, not channel.  
SLC amounts vary by jurisdiction, but are currently as high as $6.00 
per line within Bell Atlantic's region.  Bell Atlantic is a world 
leader in providing ISDN technology with over 91,400 ISDN lines in 
service.  All common carriers must now comply with the FCC's rule 
interpretation in the NYNEX case unless they obtain a waiver. 


Bell Atlantic Corporation, based in Philadelphia, is the parent of 
companies which provide a full array of local exchange 
telecommunications services in New Jersey, Pennsylvania, Delaware, 
Maryland, Virginia, West Virginia and Washington, D.C.  The corporation 
is at the forefront of developing a variety of new products, including 
video, entertainment and information services.


Bell Atlantic also owns an interest in Telecom Corporation of New 
Zealand and is the parent of companies that provide business systems 
services for customer-based information technology throughout the U.S. 
and internationally.  In addition, Bell Atlantic is the parent of one 
of the nation's largest cellular carriers and has an ownership position 
in cellular properties internationally, including Grupo Iusacell, S.A. 
de C.V., Mexico's largest independent cellular company.


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