THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Tuesday, June 4, 1996 TAG: 9606040286
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY JAMES SCHULTZ, STAFF WRITER
LENGTH: 136 lines
If you use a telephone, Monday's announcement of the nation's first ``interconnect'' agreement, between Bell Atlantic-Virginia and Northern Virginia cable company Jones Communications, may be money-saving music to your ears.
Lower statewide and long-distance phone rates could be the ultimate result. Because the pact essentially opens Virginia's Bell network to competition - a key regulatory requirement mandated by recent federal and state reform legislation - Bell Atlantic could get a toehold in the lucrative state-to-state, long-distance telephone business.
The accord must still be approved by the State Corporation Commission, which has 90 days to rule on the particulars of the 58-page document submitted by Bell and Jones.
The agreement sets the terms for the direct connection of both companies' Virginia facilities, enabling Jones to provide residential and business telephone service using its own digital-switching and fiber-optics-based cable TV network. Enhanced calling services, like Caller ID and Answer Call, would be available from either company, and customers would be able to keep their phone numbers even if they change providers.
``Keep in mind this agreement is statewide in scope,'' Bell Atlantic spokesperson Paul T. Miller Jr. said. ``Jones can pick up and go anywhere - Norfolk if they want to. They're free to go anywhere in the state.''
Jones provides cable television service to 300,000 customers in the metro Washington area, including most of Prince William County and the cities of Alexandria and Reston. Its parent, Jones Intercable Inc., is one of the largest cable operators in the United States, with a customer base of 1.4 million in 20 states.
Callers shouldn't break out the party favors yet, according to Jean Ann Fox, president of the Virginia Citizens Consumer Council. Savings from lower-cost long-distance calls within Virginia are likely to come slowly, if at all. Bell's real interest, she says, is to enter the interstate long-distance business as quickly as possible by satisfying minimum federal and state requirements.
``It isn't clear from the details how much real competition there will be,'' Fox said. ``Jones is not an alternative to a state-wide monopoly. It's a small cable operation (in Virginia). It's notable that the deal isn't with MCI, AT&T or Sprint.''
Fox characterizes the Bell-Jones pact as a ``first step.'' It will likely take years, she argues, to arrive at the long-predicted future of low-cost, abundant telecommunications services to the home.
``A monopoly phone company is entrenched,'' Fox said. ``It will take a lot of change for new entrants to reach customers. I don't expect to see effective competition for the residential customer anytime soon.''
More Bell deals with competitors are coming, according to spokesperson Miller. The Virginia phone company is in discussion with 30 firms, including AT&T.
``We're talking with anyone that wants to talk to us,'' Miller said. ``It just so happens that Jones was the first. . . . Residential competition will come for local telephone service. There's no question about it.''
Additional interconnect agreements may be on the way. Two companies, MFS Intelenet and MCI Metro have obtained so-called ``certificates of public convenience and necessity,'' a preliminary step to any interconnect accord. Six more certificates are under review by the corporation commission, spokesperson Ken Schrad said.
If change and choice won't be arriving tomorrow, they are at least on the horizon.
``Competition means choice,'' Schrad said. ``People will be faced with choices for all of their telecommunications needs - voice, date, video and wireless. It will put more control in the hands of consumers.''
If you use a telephone, Monday's announcement of the nation's first ``interconnect'' agreement, between Bell Atlantic-Virginia and Northern Virginia cable company Jones Communications, may be money-saving music to your ears.
Lower statewide and long-distance phone rates could be the ultimate result. Because the pact essentially opens Virginia's Bell network to competition - a key regulatory requirement mandated by recent federal and state reform legislation - Bell Atlantic could get a toehold in the lucrative state-to-state, long-distance telephone business.
The accord must still be approved by the State Corporation Commission, which has 90 days to rule on the particulars of the 58-page document submitted by Bell and Jones.
The agreement sets the terms for the direct connection of both companies' Virginia facilities, enabling Jones to provide residential and business telephone service using its own digital-switching and fiber-optics-based cable TV network. Enhanced calling services, like Caller ID and Answer Call, would be available from either company, and customers would be able to keep their phone numbers even if they change providers.
``Keep in mind this agreement is statewide in scope,'' Bell Atlantic spokesperson Paul T. Miller Jr. said. ``Jones can pick up and go anywhere - Norfolk if they want to. They're free to go anywhere in the state.''
Jones provides cable television service to 300,000 customers in the metro Washington area, including most of Prince William County and the cities of Alexandria and Reston. Its parent, Jones Intercable Inc., is one of the largest cable operators in the United States, with a customer base of 1.4 million in 20 states.
Callers shouldn't break out the party favors yet, according to Jean Ann Fox, president of the Virginia Citizens Consumer Council. Savings from lower-cost long-distance calls within Virginia are likely to come slowly, if at all. Bell's real interest, she says, is to enter the interstate long-distance business as quickly as possible by satisfying minimum federal and state requirements.
``It isn't clear from the details how much real competition there will be,'' Fox said. ``Jones is not an alternative to a state-wide monopoly. It's a small cable operation (in Virginia). It's notable that the deal isn't with MCI, AT&T or Sprint.''
Fox characterizes the Bell-Jones pact as a ``first step.'' It will likely take years, she argues, to arrive at the long-predicted future of low-cost, abundant telecommunications services to the home.
``A monopoly phone company is entrenched,'' Fox said. ``It will take a lot of change for new entrants to reach customers. I don't expect to see effective competition for the residential customer anytime soon.''
More Bell deals with competitors are coming, according to spokesperson Miller. The Virginia phone company is in discussion with 30 firms, including AT&T.
``We're talking with anyone that wants to talk to us,'' Miller said. ``It just so happens that Jones was the first. . . . Residential competition will come for local telephone service. There's no question about it.''
Additional interconnect agreements may be on the way. Two companies, MFS Intelenet and MCI Metro have obtained so-called ``certificates of public convenience and necessity,'' a preliminary step to any interconnect accord. Six more certificates are under review by the corporation commission, spokesperson Ken Schrad said.
If change and choice won't be arriving tomorrow, they are at least on the horizon.
``Competition means choice,'' Schrad said. ``People will be faced with choices for all of their telecommunications needs - voice, date, video and wireless. It will put more control in the hands of consumers.'' ILLUSTRATION: Graphic
THE DEAL
BELL ATLANTIC SAYS
CRITICS SAY
[For complete graphic, please see microfilm] by CNB