Personal Technology Column Article - April 20th 1998


USWest uses monopoly power in attempt to stifle Internet competition?

Web surfers have long waited for an inexpensive high bandwidth wide area networking technology that would allow them to hook up their home computers to the Internet at speeds that have historically been reserved for large corporate networks or universities. Cable company promises of nearly unlimited Internet bandwidth for $40 a month has not been realized on a large scale. Like a winter storm that hovers just offshore, that promising technology has been "looming" over Internet users for the last few years, but has failed to materialize on any large scale nationwide, despite a very well orchestrated media campaign to the contrary. However, USWest's proposed Digital Subscriber Line (DSL) service may finally make good on the promise of low-cost, high-speed digital Internet access for the home user.

While there is no genuine shortage of working high bandwidth technologies that allow high-speed web surfing from at home, the cost for this type of access through traditional wide area networking (WAN) is usually expensive enough to keep home users away. Competing new technologies, such as DSL are waiting in the wings to bridge the gap between the demand for high speed, and the price home users are willing to pay for Internet access.

The Washington Utilities and Transportation Commission, (http://www.wutc.wa.gov) which acts as a regulatory watchdog agency over USWest's regulated monopoly phone division, is set to consider approval of the phone company's DSL tariff filing on Wednesday, April 22 in Olympia. Unfortunately for consumers, USWest appears to be politically jockeying to give themselves a clear advantage when it comes to marketing its unregulated Internet access services to people who want to use their DSL technology to access the Internet, which many industry observers believe will have a stifling effect on competion.

At the WUTC's last open hearing regarding this matter on the 8th of this month, USWest withdrew from its previously negotiated position that it would not try to steer Internet users toward its own Internet Service Provider (ISP) to people calling to order DSL lines in the home. USWest had worked closely with the WUTC staff, the Washington Association of Internet Service Providers (http://www.waisp.org) and other interested parties on this compromise. Concerns about the unfair advantage this might give the phone company due to its closely held monopoly on telecommunications services are very real in the eyes of commission and these groups.

At the hearings, all parties were anxious to have the tariff approved based on the suggested amendments to their filing, but USWest backed down at the last minute saying it had the right "cross-sell" its services. This action caused the commission to do a quick double-take, which postponed consideration of final approval for two weeks so that this last remaining issue of contention could be worked out. The commission's actions are consistent with its stated mission, and history of protecting the consumer from anti-competitive practices that reduce competion.

USWest has taken the position that Washington State law, and FCC regulations against cross marketing of this type of enhanced network service does not prohibit it from trying to sell its own ISP services to its captive audience of DSL customers. USWest has threatened repeatedly to withdraw the tariff filing if they are not allowed to market its own ISP to people who have called to order DSL services. Sources close to the ongoing final negotiations have stated that the WUTC believes it has the power to prohibit this type of marketing by USWest.

Independant ISPs, USWest, and consumers are all anxious to roll out these new 21st century data networking technologies that will speed up internet data transfer, and open up a world of possibilities for new internet applications such as video conferencing or high quality live streaming video.

Internet users who have an active interest in these policy issues may want to join an industry group such as the Washington State Internet Lobby (WSIL - http://www.wsil.org), which is a user supported non-profit organization of people and businesses that use the Internet. WSIL follows Internet related legislation, and helps to keep members informed of policy issues that affect the Internet. Others people who are interested in the outcome of the commission's decision may want to come to the open hearing on this issue which is scheduled for April 22nd at 9:30 am at the commission's headquarters in Olympia.


This article Copyright April 17th, 1998 Jay Stewart