AT&T’s Chairman, David Dorman, warned that landmark policy changes now being considered at the FCC could change the telecom landscape for decades. Dorman urged regulators to permit the current competitive environment to evolve into facilities competition rather than to take any steps that would lead to the re-monopolization of the Bell networks. Dorman predicted that inter-modal (wired, cable and wireless) competition will develop eventually but that it is not significant yet. He believes that some forms of wireless and satellite could become true last-mile alternatives. The UNE-P platform has enabled AT&T to offer competitive local services in ten states so far. Dorman said this real competition has led to more choices and lower prices. He said AT&T already has significant incentive to build its own local access networks as it currently pays $5 to $8 billion per year to the Bells for local access, but that AT&T could not go ahead with a major network expansion under the old paradigm of “build it and they will come.” AT&T must establish a large customer base for local services first and then the new networks can be built. Dorman also expects technological advances such as better DSPs and non-line-of-sight wireless systems to play an important roll in the next 3 to 5 years.
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- An archived webcast of AT&T Chairman & CEO, Dave Dorman speaking at The National Press Club is available online. http://npc.press.org/ http://www.connectlive.com/events/att/
- The CEO of BellSouth is scheduled to speak at The National Press Club in February.
