Path: utzoo!news-server.csri.toronto.edu!cs.utexas.edu!swrinde!zaphod.mps.ohio-state.edu!rpi!bu.edu!telecom-request From: abvax!iccgcc.decnet.ab.com!herrickd@uunet.uu.net (CONTR HERRICK, DAN) Newsgroups: comp.dcom.telecom Subject: Local Competition - "Bypass Service" Message-ID: Date: 5 Mar 91 00:01:00 GMT Sender: news@bu.edu.bu.edu Organization: TELECOM Digest Lines: 70 Approved: Telecom@eecs.nwu.edu X-Submissions-To: telecom@eecs.nwu.edu X-Administrivia-To: telecom-request@eecs.nwu.edu X-Telecom-Digest: Volume 11, Issue 182, Message 5 of 10 Pat reported IBT access for Teleport Communications and Metropolitan Fiber Systems to provide some alternative LEC services, reselling IBT services and asked where else alternative service is actually being implemented. This data comes from a front page article, headed "Shakeout Looms Over Bypass Mart by Bob Brown, Senior Editor in the 25 February 1991 issue of {Network World}, a weekly tabloid. (Dallas dateline) The dateline was for the annual meeting of the Association for Local Telecommunications Services, a trade group of alternative access carriers. The mood at the meeting was "incredibly optimistic" according to John Shapleigh, ALTS' new president. Philadelphia Fiber Optic went out of business, losing a competitive war. Dallas based DFW MetroLink, Inc filed for Chapter 7 liquidation, but is continuing to sign up new customers while looking for a buyer. Some others, including Institutional Communications Co, and Eastern Telelogic are looking for money. Teleport Communications Group, the industry's only profitable player, is being offered for sale by owner Merrill Lynch & Company, Inc. Metropolitan Fiber Systems, Inc is not for sale, but has suitors. These are the two Pat mentioned in the IBT story. Foreign long haul carriers Cable & Wireless PLC, British Telecommunications PLC, France Telecom, and Kokusai Denshin Denwa, Ltd are in the bidding for Teleport. (And others.) Metropolitan Fiber Systems is operating networks in 11 cities. Market revenues (all alternate companies) $60 million in 1989 and $90 million in 1990. Market share in any city tends to be less than 2% of the business business. The article has a chart, credited to Susan J Champeny of The Yankee Group, Boston, that shows investment in local fiber network by the alternate access carriers and by the local exchange carriers: 1988 1989 1990 1991 1992 alternate $250 $350 $400 $450 $500 LEC 0 40 100 250 300 Robert Atkinson, senior vice-president of regulatory and external affairs at Teleport, says chances are good that carrier accessibility will get better for the alternates now that Teleport has won a bitter struggle with Nynex Corp. to collocate in New York Telephone Company central offices. Atkinson's comments suggested that the IBT agreement followed from and was related to the successful conclusion in NY. He says that the Bells are givin in to the alternative access carriers on interconnection in hopes of winning concessions from public service commissions. New York Telephone won more pricing flexibility as it conceded central office access. So, my suggestions here that we ought to compete are a few years behind the market. My report above names every company in the alternate carrier market mentioned in the Network World article. dan herrick herrickd@iccgcc.decnet.ab.com