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.