CompTel Unveils Principles to Guide Competition

CompTel outlined eight key competitive principles that will guide the association’s future advocacy efforts. These principles are designed to address issues that could impact the competitive telecommunications industry’s long-term ability to serve as an economic catalyst; to provide consumers choice, lower prices and innovative service offerings; and to deploy diverse network facilities critical to protecting the nation’s security.

“Though much attention of late has been focused on the outcome of the FCC’s Triennial UNE Review, it is critical for us to look at the bigger picture,” said H. Russell Frisby Jr., president of CompTel. “Without a robust competitive marketplace - which is built on access to all critical pieces of the public switched network at economically rational prices - there is no way to guarantee that consumers will be able to continue to receive the innovative voice and data services our member companies have introduced to the market over the past several years.”

On May 8th, 2003, Frisby; Richard Burk, chairman of CompTel, and president and CEO of nii Communications Ltd.; Robert A. Curtis, chair of CompTel’s Regulatory Committee and president of Z-Tel Network Services Inc.; and Richard Fruchterman III, chair of CompTel’s Legislative Committee and vice president of government relations for MCI, introduced these competitive principles:

Promote Choice for All Consumers
Local telecommunications competition brings significant benefits to consumers: lower prices, more choice and innovative services. CompTel will encourage regulators and legislators to continue to promote telecommunications competition (in voice and data services) in an effort to ensure that consumers can reap the benefits promised by the 1996 Telecommunications Act.

Competition is an Economic Catalyst
Competition and competitive telecom service providers contribute significantly to economic development nationwide. CompTel will continue to demonstrate how its members’ activities in providing competitive telecommunications services are catalysts for economic stimulus and technological innovation.

Competition - Not Monopoly - Promotes Technology/Service Innovation and Network Infrastructure Investment
Monopolies, such as the Bell companies, do not have any incentive to innovate, deploy new technologies, or lower their prices without pressure from competitive entities. CompTel will continue to advocate that competition must be allowed to flourish in order to encourage development of new technologies and service packages as well as investment in network infrastructure.

Competition is Vital to Network Reliability/Diversity and Homeland Security
Network diversity and redundancy are necessary to ensure that users have access to a reliable communications system. CompTel will promote the fact that the state-of-the-art alternative networks built by its members also assist in defending our homeland, providing unfailing communications and diversity in time of emergency and need.

Unrestricted Access to UNEs
Competitors should have access to all unbundled network elements (UNEs) that are critical to their entry strategy. CompTel will continue to fight to preserve UNEs, and believes that all providers must have equal access to the “first mile,” as well as network elements that are necessary for delivering service to end users.

Economic Pricing Model
Competitors cannot be required to obtain services and facilities from RBOCs at uneconomic prices. TELRIC represents the proper economic pricing model, despite RBOC arguments that they are being forced to subsidize competitors’ entry into the marketplace. CompTel will continue to fight to ensure that regulators require pricing of network infrastructure and services based on the proper economic model.

Access to All Technology/Network Elements
Since the nation’s telecommunications network is constantly evolving, competitors must have access to all network technology and capacity on economic terms and pursuant to reasonable conditions in order to provide both voice and data services to their customers. CompTel will advocate that monopoly-controlled facilities needed to provide voice and data services remain accessible to competitors.

RBOCs Must Compete Out of Region
The RBOCs must be required to compete out-of-region. This policy should be stringently enforced by regulators as a means to curb anti-competitive practices. CompTel will advocate to regulators that the Bells should not remain content in their historical territories, while trying to protect their monopoly through lobbying efforts at the FCC, on Capitol Hill and in the states.

Comptel Media Contact:
Gail Lawyer
(202) 296-6650

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