Merlin
12-16-2004, 11:31 AM
From today's FT (http://news.ft.com/cms/s/9bb8eac0-4f08-11d9-9488-00000e2511c8.html)
Airlines given green light on in-flight internet access
By Joanna Chung in Washington
Published: December 16 2004 02:00 | Last updated: December 16 2004 02:00
A decision yesterday by federal regulators to let US airlines provide high-speed internet access to passengers could provide a new source of revenue to telephone providers and the struggling airline industry.
The US Federal Communications Commission, which approved a measure to restructure how frequencies for air-to-ground services are used, said it plans to auction airwave rights to companies seeking to offer wireless internet access on commercial aircraft.
The FCC also began discussions on the possibility of removing a ban on the use of cell phones on aircraft though any easing of rules would not occur until both the FCC and the Federal Aviation Administration, which also has a ban on the practice, finish examining how a lifting of the restriction would affect aircraft navigation systems and cell phone use on the ground.
"With these actions today, we take important steps to bring the air-ground service up-to-date as both a technical and marketplace matter," said Michael Powell, the FCC chairman. "We need to do more to provide more choices and multiple platforms for communications between the air and the ground to satisfy the demand for better, high-speed services."
Airline passengers are currently able to communicate with the ground only via telephones located in the backs of seats, a service provided solely by Verizon Airfone. It is unclear how many companies will be allowed to offer communication services through the auction, which is likely to occur late next year. The commission has set up different scenarios for splitting four megahertz of wireless airwaves.
Separately, the commission ruled that it would phase out discounts that the big four local telephone companies, known as the Baby Bells, offer competitors for access to their networks. The 3-2 decision, which is the latest in an eight-year effort to increase competition in the local phone market, would give the competitors up to 12 months to build their own networks or negotiate new leasing agreements. It would probably lead to higher telephone bills for many residential and business consumers.
Mark Cooper of the Consumer Federation of America said: "The FCC today continued its practice of chipping away at telecommunications competition while strengthening the Bell monopoly. And consumers will be the ones paying the price through diminished choices and higher rates."
* US regulators approved new rules yesterday that would ease some requirements for the Baby Bells to lease their networks to competitors at government-set rates, reports Reuters in Washington. A divided FCC approved new rules that would require the Baby Bells to continue to provide discounted rates for rivals to serve business customers that have little choice for service.
The agency said the Bells would have to lease high-capacity lines and offer transport of calls between offices at the low rates, depending on the number of business lines or competitors in the area. In the Bells' wire centres, where there are tens of thousands of business lines or several fibre-optic line competitors operating, the low-cost leasing requirements would not apply, according to the FCC.
Airlines given green light on in-flight internet access
By Joanna Chung in Washington
Published: December 16 2004 02:00 | Last updated: December 16 2004 02:00
A decision yesterday by federal regulators to let US airlines provide high-speed internet access to passengers could provide a new source of revenue to telephone providers and the struggling airline industry.
The US Federal Communications Commission, which approved a measure to restructure how frequencies for air-to-ground services are used, said it plans to auction airwave rights to companies seeking to offer wireless internet access on commercial aircraft.
The FCC also began discussions on the possibility of removing a ban on the use of cell phones on aircraft though any easing of rules would not occur until both the FCC and the Federal Aviation Administration, which also has a ban on the practice, finish examining how a lifting of the restriction would affect aircraft navigation systems and cell phone use on the ground.
"With these actions today, we take important steps to bring the air-ground service up-to-date as both a technical and marketplace matter," said Michael Powell, the FCC chairman. "We need to do more to provide more choices and multiple platforms for communications between the air and the ground to satisfy the demand for better, high-speed services."
Airline passengers are currently able to communicate with the ground only via telephones located in the backs of seats, a service provided solely by Verizon Airfone. It is unclear how many companies will be allowed to offer communication services through the auction, which is likely to occur late next year. The commission has set up different scenarios for splitting four megahertz of wireless airwaves.
Separately, the commission ruled that it would phase out discounts that the big four local telephone companies, known as the Baby Bells, offer competitors for access to their networks. The 3-2 decision, which is the latest in an eight-year effort to increase competition in the local phone market, would give the competitors up to 12 months to build their own networks or negotiate new leasing agreements. It would probably lead to higher telephone bills for many residential and business consumers.
Mark Cooper of the Consumer Federation of America said: "The FCC today continued its practice of chipping away at telecommunications competition while strengthening the Bell monopoly. And consumers will be the ones paying the price through diminished choices and higher rates."
* US regulators approved new rules yesterday that would ease some requirements for the Baby Bells to lease their networks to competitors at government-set rates, reports Reuters in Washington. A divided FCC approved new rules that would require the Baby Bells to continue to provide discounted rates for rivals to serve business customers that have little choice for service.
The agency said the Bells would have to lease high-capacity lines and offer transport of calls between offices at the low rates, depending on the number of business lines or competitors in the area. In the Bells' wire centres, where there are tens of thousands of business lines or several fibre-optic line competitors operating, the low-cost leasing requirements would not apply, according to the FCC.