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The Syndicate Report Issue 06
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THE SYNDICATE REPORT
Bell Information Transmittal No.06
Released Sept. 28 1986
Featuring:
Vanity Numbers (mgbt v1n6 8\28)
Long-Distance Data Transmission Statistics (mgbt v1n6 8\28)
ISDN- A Primer (cmptv avg 8\30)
Information on Fiber Optics (cptv avg 8\31)
Deregulation Interview: Tri-Co's Jim Blair V.P. (mgnet 9\5)
Written by The Sensei
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The Syndicate Report is stictly Bell orientated information. Without some
background, reading in this material could cause a problem to understand.
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VANITY NUMBERS:
Vanity telephone numbers will be marketed in some parts of the country,
according to the Wall Street Journal. Like vanity license plates, they will
be names, nicknames or a special combination or letters and numbers...In
another article, the Wall Street Journal reports that "big businesses generate
more than half of all revenue from long-distance calls." It did not say
howbig "big" is.
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LONG-DISTANCE DATA TRANSMISSION STATISTICS:
In a test of data-transmission quality of six leading long-distance
carriers, Data Communications and the Center for Communications Management
Information, Ramsey, N.J., found AT&T rated best in eight, MCI best in six
and GTE Sprint in one. AT&T was fastest in setting up a call; MCI had the
lowest in error rate...Venture Development Corp., Natick, Mass., forecasts
annual growth of 23.5 percent in modem shipments through 1991...VSAT stands
for "Very Small Aperature Terminal," an emerging technology for receiving
signals from high-powered satillites in the KU-Band of frequencies. AT&T
has proposed VSAT-based data service for business customers. VSATs also will
use for satellite-to-home television broadcasting.
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ISDN- A PRIMER:
Integrated Services Digital Network, ISDN for short, is the emerging
network concept that will change the way we commuicate both on the job and at
home. ISDN has become a popular topic in trade and industry publications as
manufacturers, end users, BOC's and numberous other entities grapple with the
evolution of the network. Still, for people not involved on a day-to-day
basis, the what, why, how and when of ISDN in unfamiliar. The following is
a non-technical description of the ISDN concept and how it will serve the
needs of and information processing society.
ISDN Definition: The concept of ISDN first emerged in the European
community and is not spreading globally, primarily to the United States and
Japan at this time. The international communications standards bodies have
defined an ISDN as "a network, in general evolving from the existing telephony
digital network, that provides end-to-end digitial connectivity to support a
wide range of services, including voice and non-voice services, to which
users have access by a limited set of standard multipupose user-to-network
interfaces".
The major factor which characterizes an ISDN is the ability to use a
single commuication channel for all forms of information transfer regardless
of the source or original form of that information. It will be universally
accessible by a wide assortment of devices, machines, and terminals.
Picture this on ISDN: Junior is in his room, talking on the phone and
playing a computer game -- with an opponent on another phone miles away. Mean-
while, Mom is talking to her office getting ready to send a 50-page document
over the wires. And Dad checks stock quotations displayed on a TV screen
connected to a phone line.
All of those different uses for the telephone -- voice, data, video --
would be possible on just one telephone line if Integrated Services Digitial
Network becomes a way of life.
(ISDN- A Primer will continue in the next transmittal as more
information is gathered.)
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INFORMATION ON FIBER OPTICS:
Fiber Optics technology is enjoying wide acceptance in the telecom.
industry and is fast becoming the preferred transmission medium for new
installations. This is due, in part, to the advantages fiber has over other
methods and also to a decrease in the cost of fiber optics cable and system
components.
Fiber Optics was first commercially produced in 1979. Since the, the
technology has matured and many improvements in capabilities and performace
have been realized.
The advantages of fiber optics over other transmission media include:
Superior bandwidth capability that is still increasing.
Resistance to temperature variation, rediation, and corrosion.
Immunity to electromagnetic and radio frequency interference.
Lower attenuation than metallic facilites, thus increasing the transmission
distance without repeaters.
Extremely secure -- almost impossible to tap without detection.
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DEREGULATION INTERVIEW: TRI-CO'S JIM BLAIR V.P.:
Interview done during a CB Interview, system unknown.
The questions will be asked by "SYND" and the response by "BLAIR" himself.
Jim Blair is the Assistant Vice President -- Regulatory Affairs
The Interview:
SYND: Why is deregulation so critical to the success of US WEST, and what
happens if you do not get it?
BLAIR: With deregulation, we are talking about doing business on the same
basis as any other American company does business.
There are numerous problems with regulation. It's time-consuming
and costly. We employ over 300 people and incure over $50 million in annual
expense just to deal with being in a regulated environment. We encounter
delays in many proposals we make to 14 defferent jurisdictions at the state
level and one at the federal level. This is of great concern when our
competitors don't have to operate under all the same rules.
Regulation influences our decisions to enter and exit markets.
Regulation, not the market, controls the price of our products and it decides
what types of businesses we are allowed to be in. This is totally opposite of
today's competitive environment.
So if we intend to compete, then it is critical we be deregulated.
SYND: What is the significance of the Nebraska deregulation example?
BLAIR: It is tremendous. Nebraska regulators and legislators believed that
competition is here and if it's going to continue to develop, it must do so in
a deregulated environment. And, in plain terms, it could be very good for that
state's economy by attracting business and jobs.
Our hat is off to Don Bliss, Nebraska's Chief Executive Office and
Vice President-Regulatory and External Affairs, and his staff who initiated
and achieved this historic change in the treatment of the industry.
Nebraska is the most significant example of deregulation, yet. It
sets an example for public policy makers all over the country. And I think
other regulators are going to see the wisdom of deregulation as demonstrated
by the Nebraska bill.
SYND: What is Tri-Co doing to help with deregulation efforts?
BLAIR: Tri-Co people are integrally involved with the IDCs and the Washington,
D.C. office in developing strategies to support the strategic direction for
deregulatory action.
We've put in place a clearinghouse of information to share plans
between the states so that there are no political surprises. In working
with IDC teams, we've developed a system that outlines the preferred approach
to deregulation in any given place at any given time.
On federal level, U S WEST has been the most active in seeking
deregulation. And we have had some successes. Our Tri-Co team was involved
in preparing our CI III comments in concert with the Washington, D.C. office
and with Open Network Architecture (a U S WEST innovation.)
We are also deeply involved with Part X -- an accounting document that
will establish procedures to account for regulated and deregulated organiza-
tions within the same enterprise.
Tri-Co Regulatory and Marketing groups also are in the process of
working through implementation of deregulated billing and collection
service for interexhange carriers. Ron James, Northwestern Bell Vice President
--Communications Services and Advanced Information Markets, is heading this
effort for the three IDC's.
Incidentally, there are 11 states with deregulation bills in place in
the country -- and eight of them are in U S WEST territory. It speaks very
well for our actions to bo competitive.
SYND: What issues have our critics singled out against deregulation?
BLAIR: There are four issues our critics tend to use. The first is the issue
of pricing. People fear we will dramatically raise our prices. To the
contrary the market controls our prices.
Second, there is concern for overcharging for certain services and
underpricing others.
Third, there's a concern about Universal Service. How will we continue
service levels of more than 93 per cent of the population typical through-
out America today?
And fourth, there's a concern in the public policy environment about
how new services are going to come to the marketplace to the benefit of all
consumers without unfair cross-subsidy.
SYND: And what about advantages for the consumer?
BLAIR: The market will control service and price. New services will come to
the market. Our basic business can be better protected because we will be
encouraging and stimulating use of the network rather than holding it for
internal purposes. Universal Service can be guarenteed simply because of its
value. And Open Network Architecture (ONA) will simulate network usage and
technical innovation.
SYND: About the future -- what happens once we reach our goal, when Magnet
gets deregulated?
BLAIR: For the company, it will mean that we will have achieved economic
freedom. We will be regulated by the marketplace. And we will have to spend
that $50 million a year on regulation. Our customer will be better served.
And out employees will find more opportunities in the workplace because our
business position will be enhanced. And I'll be out of a job!
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If there is any question to the information in this file, contact the
author. Now can be found on the Private Sector 20 Meg, 3/1200 baud
system at (201) 366-4431 (2600 Magazine Bulliten Board).
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This concludes this transmittal No. 6 presented by:
The Sensei - The Syndicate Report
Released Sept. 28 1986
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