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National Journal's Technology Daily PM Edition, August 23, 2000
Bell Competitors Feeling Slammed Teri Rucker Baby Bell competitors, and at least a handful of consumers, are airing their grievances over what they call bad behavior by local phone firms in the high-speed Internet service market. But the Bells attribute any problems to glitches common during the rollout of a new, highly complex technology.
Competing providers of digital subscriber lines (DSL) and Internet services have lodged complaints with industry and consumer groups, accusing the Bells of disparaging competitors' offerings, signing up customers for their own service when a competing one is requested and switching the service without permission -- a practice called slamming.
Because the Bell companies own the copper wires over which DSL service runs, a customer generally has to call their local Bell to get service, even if it is offered by a competing local exchange carrier or an Internet service provider (ISP). It is not legal for the Bells to promote their own product or disparage a competitor's services.
Consumers Union is getting "the first trickle of complaints" about slamming, but the group does not have enough evidence to determine whether the practice is widespread, said David Butler, spokesman for the consumer advocacy group.
"The problems are not limited to one provider. Everyone is going through the same growing pains," said Rich Jeffers, a BellSouth spokesman. He said he had not heard any slamming complaints, but attributed difficulties with DSL provisioning to its technical complexity.
Bruce Kushnick, executive director of NewNetworks Institute, a telecommunications research firm, is making an effort to collect the data and make a case to the Federal Communications Commission that the agency should intervene.
"The FCC has done nothing with the complaints by the Internet providers," Kushnick said, adding that the agency has left it to ISPs to document the problems.
FCC representatives available were not familiar with the DSL slamming issue.
Kushnick plans to create a Web site where firms and consumers can air their complaints about DSL difficulties. He also is conducting a survey that will be released next month that documents the trouble competitors have had providing DSL services. A study released by New Networks this summer on the Baby Bells' competitive record touches on the issue.
According to "How the Bells Stole America's Digital Future," 71 percent of ISPs said the Bells lost their DSL orders, 59 percent reported slamming and 53 percent said the Bells criticized the competitor's offering. Preliminary data from the new DSL study says between 30 percent and 40 percent of companies complained of slamming, according to Kushnick.
"There are 7,000 small businesses that are being put out of business by death of 1,000 cuts," Kushnick said, explaining that even if a problem stems from the Bell company, the customer is angry with the company he originally contracted and will cancel.
But Ellen Jones, BellSouth spokeswoman, noted that ISPs are Bell customers, and it would be counterproductive to impede their ability to provide DSL services. "We have no reason to work against the ISP," she said.
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