THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: FRIDAY, June 10, 1994 TAG: 9406100710
SECTION: BUSINESS PAGE: I2 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD, STAFF WRITER
DATELINE: 940610 LENGTH: Medium
The utility, a subsidiary of Richmond-based Dominion Resources Inc., this week asked the State Corporation Commission to let it lease unused space on its fiber-optic network to state-licensed telecommunications companies.
{REST} If approved, Virginia Power's plan could further open up competition for established local phone companies like Bell Atlantic and GTE - that is if they don't grab the network for themselves.
Virginia Power has been trying to find a way to exploit the unused capacity of its internal communications network, about 230 miles of which is fiber-optic cable. The network covers a large part of the state, including the three largest metro areas, Northern Virginia, Hampton Roads and Richmond.
In 1988, Virginia Power leased part of its fiber-optic cable in the Richmond area to Wheat, First Securities Inc. But state regulators killed the arrangement, claiming the company wasn't licensed to provide such services.
Its latest proposal differs from that one in that Virginia Power now would lease the space to telecommunications companies themselves, who could in turn use the lines to serve customers like Wheat, First.
Paul Miller, a spokesman for Bell Atlantic Corp.'s Virginia phone company, said: ``If what they are seeking is legal, and that remains to be seen, we will certainly not oppose their action.''
Virginia Power pointed out in its application to the corporation commission that electric utilities nationwide have already leased more than 100,000 miles of fiber capacity to telecommunications concerns.
``There is an increasing national recognition of the need for the speedy development of the . . . so-called `information superhighway,' '' it stated. Arrangements like the one it proposes, the company continued, ``will only increase in number and become more important in the pursuit of this goal.''
Virginia Power's proposal could especially benefit so-called competitive-access phone companies. These companies typically build fiber-optic phone networks in metro areas and appeal to business customers that want to bypass the dominant local phone company, like Bell Atlantic or GTE, to connect to long-distance carriers.
Cox Cable Hampton Roads Inc. has built such a network in Norfolk, Portsmouth and Virginia Beach and has said it wants to team with other cable or phone companies to expand throughout southeastern Virginia.
Dana Coltrin, a local Cox manager, said he was intrigued by Virginia Power's proposal. Using the utility's existing network, he said, ``might give us another option.'' by CNB