[9527] in Commercialization & Privatization of the Internet
Sprint Response to MCI Announcements
daemon@ATHENA.MIT.EDU (Robert D. Collet Sprint GSD)
Fri Jan 7 17:05:52 1994
Date: Fri, 7 Jan 1994 17:22:33 -0500
From: "Robert D. Collet Sprint GSD" <rcollet@icm1.icp.net>
To: com-priv@psi.com
Cc: rcollet@icm1.icp.net
sprint.news
(C:USA,ADMD:TELEMAIL,PRMD:LANGATE,O:SMDALLAS,OU:MOKCMTPO1,SN:SPRINT.NEWS)
(c:usa,a:telemail,prmd:langate,o:smnosup,ou:north-supply,sn:ccmail)
Response To MCI Announcement
Forwarded message:
STATEMENT FROM WILLIAM T. ESREY, SPRINT CHAIRMAN & CEO
IN RESPONSE TO MCI "NETWORK CATCH-UP" ANNOUNCEMENT
"Sprint is not at all surprised by MCI's network catch-up
announcement. More than a year ago, Sprint announced its
broadband network plans to deploy SONET and ATM. We were the
first to offer commercial ATM service in August 1993. We continue
to have the most modern network and remain as the only
100 percent digital, fiber-optic long distance carrier.
"MCI is very good at packaging announcements that make
mountains out of molehills. Sprint hopes the public will take
this latest ploy for what it is -- a slick admission of being
behind in terms of technology deployment.
"On the other hand, MCI's foray into local access has some
merit. Sprint long has endorsed expanded local competition and
believes MCI's efforts may be one in a long series of steps
necessary before local competition will exist.
Network Upgrades
"We agree with MCI that it's going to take a lot of people
working together to build the information superhighway. Sprint
welcomes MCI and others aboard this significant effort.
"An important first step in the investment in the National
Information Infrastructure is the development and expansion of the
network.
"We announced our strategic vision for our advanced network a
year and a half ago and are the only carrier implementing a
broadband data strategy. We were also the first carrier to
announce plans for SONET, which we revealed over a year ago.
Since that time, we have moved from opening up pipes, which is the
basis of today's announcement, to the many exciting applications
that are driving the National Information Infrastructure concept.
"The examples are numerous. For example, our Internet
capabilities are unrivaled. Sprint offers the most widespread
Internet connectivity through SprintLink(R) network -- the first
and only TCP/IP network service for commercial and government
Internet users to be offered by a carrier. This service has
expanded to offer international connections and forms the core of
the global Internet, with two-thirds of the international Internet
traffic to and from the United States being carried on SprintLink.
This service originated from a cooperative agreement between
Sprint and the National Science Foundation to provide
international InterNet connections to the domestic Internet.
"Sprint has been and continues to be the leader in
introducing leading edge technologies, which are the 'building
blocks' of the information superhighway, to the marketplace. We
led the industry by being the first major long distance company to
deploy frame relay, and we have more frame relay customers than
any of our competitors. We were also the first to deploy ATM
service and our first customer turned up service last year.
"Our leadership in this key technology has been widely
recognized -- most recently by the government by being selected to
provide ESNet for the Department of Energy and NASA -- because of
our unique ability to offer ATM.
"That recognition as the technology leader in ATM extends to
the telecom industry, as well as the academic and government
communities, by being the only company selected to provide ATM for
the National Information Infrastructure Testbed. NIIT is a
consortium of business, government and academic leaders working
together to speed the delivery of the information highway.
"Our ATM leadership, in conjunction with our 1993 deployment
of SONET, will ensure that Sprint continues to build on its
reputation as the advanced networking leader.
Local Access
"The virtual monopoly that exists today in local access is
troublesome for the long distance industry. Currently, more than
99 percent of long distance traffic originates and terminates over
facilities owned by local telephone companies, principally the
Regional Bell Operating Companies. Long distance competitors are
at the mercy of local telcos, since they are the only way to reach
our customers. Today, about 45 percent of the cost to carry a
long distance call is a direct payment to the local telephone
company for the 'last mile' connection.
"Sprint has been an advocate of expanded competition in local
access primarily because of the excessive cost of access charged
by the RBOCs in their respective operating areas.
"MCI's plan to build local access networks in major
metropolitan areas could be another step toward local competition.
Competition will not happen overnight, however. It took more than
15 years of constant litigation and ultimately the breakup of the
Bell System before competing carriers were able to establish a
meaningful presence in long distance. The local monopolies of the
RBOCs are at least as strong as the monopoly enjoyed by Bell in
long distance prior to divestiture.
"MCI's plans, no matter how grand, should be viewed much the
same as the plans for local access that have been announced by
cable television, cellular and PCS providers -- positively, but
without expectations of near-term impact.
"The issue of RBOC entry into the interexchange market does
not change with MCI's plans. True competition for local access is
still many years away. Until there is actual and effective
competition in the local loop and the bottleneck is broken, the
RBOCs should not be allowed to act as both competitors and virtual
sole source access providers to long distance carriers. When the
means and opportunity for the RBOCs to discriminate against long
distance competitors is lifted through competitive local access,
then, and only then, should the restrictions on the Bell companies
be lifted."
Contacts: Susan Kraus, (O) 202-828-7410; (H) 202-986-3952
Steve Dykes, (O) 202-828-7435; (H) 703-242-1769
####
Jan. 4, 1994
MGJE-5831-5063
