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Attention
all major Wireless Telephone®™©
Companies and WiTEL - Wi-Fi Broadcasters. The Next
Century of the Wireless Telephone®™©
is waiting for you! Get Ready for 2009 -- the 101st
year of the Wireless Telephone®™©
Organization . . . See WiTEL.org . . .
" top top top top top top top top (You
MAY need the FREE QuickTime
plug-in to view and hear s90tv) (You
MAY need the FREE
QuickTime
plug-in to view and hear
s90tv) • 110 / HiTech This
Week's
Cover Dear
Editor LookRadio Follow
The
Money • 120
PIXELS 3
columns In
the now famous lecture in the
praise of patent laws, Abraham
Lincoln spoke of the importance
of protecting and encouraging the
fire of genius, in the discovery
and production of new and useful
things. •
•
Before becoming president,
Lincoln's lectures always
stressed ownership, it was the
fruits of labor. He stated in
1858, "man is not the only animal
who labors; but he is the only
one who improves his
workmanship." In 1859 he praised
the patent laws for having
"secured to the inventor, for a
limited time, the exclusive use
of his invention; and thereby
added the fuel of interest to the
fire of genius, in the discovery
and production of new and useful
things." This
NBS100 TELECOM STUDY on
the
regulatory missteps and Property
Seizure that has and still is
taking place in the U.S.A. --
attempts to demonstrate the
primary factor in America's lowly
ranking in the deployment of
advanced technologies and the
reason why NBS100 encourages that
monetary damages should be paid
for the regulatory seizure of
frequencies, that took place
since 1908. The
following are thoughts that might
help lead lawmakers out of the
forced-access morass environment
that are predetermined.
Modern
telecommunications is a
mixture
of computer-wise software,
dv-video tape, DVDs, CDroms,
switches, and electromagnetic
wave spectrums. But
telecommunications policy doesn't
have to be as complex if guided
by three fundamental American
principles. Among the most basic
of these principles is honesty,
competition and the protection of
private property rights.
CLICK
FOR MORE STORY
-
WHERE
COMPETITION THRIVES WIRELESS
TELEPHONY PRESENTS THE GREATEST
COMPETITIVE CHALLENGE TO WIRE
LINE SERVICE AT PRESENT. •
•
Don't
kid yourself about the Internet,
Dot Com industry. It was created
in the 90s, on purpose in the
hall ways of copyright, trademark
regulators. Congress forced
incumbent local telephone
companies to share their
facilities with a group of
predetermined rivals that would
be charged at regulated rates, to
jump start the new industry.
•
•
AT&T
History Links. Photo of cover of
Kingsbury Commitment. The
Kingsbury
Commitment,
published by the United States
Government Printing Office in
1914. THE
INTERNET ROAD
MAP •
•
In
hindsight, competition might well
have
yielded
the new technologies and
applications that we have today,
a little sooner, -- that instead
took decades to
achieve. HOW
IS A REGULATION
CREATED? •
By
1925, telecom rate regulation was
in
effect,
as well as the regulatory seizure
of private telecom
property
across
most of the nation, and
competition was either
discouraged or explicitly
prohibited. The regulatory
structure was finalized when
Congress created the Federal
Communications Commission in
1934. ©2005
SMART90.COM Designed For
Explorer36+704/740
ˆ
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EXECUTIVE SUMMARY
Study
of FCC
Summary
Gov.
Control
Legal
Opinions
Acknowledgments
"Wireless"
•
"The
Deal To
Steal"
•
NBS100
FTC STUDY - THE Red Flags
Rule
"ID
Theft Prevention" - for the Wireless
Telephone®™©
Industry"
Murray
State University -
"Teléph-on-délgreen"
Birthplace
of the Wireless Telephone®™© -
1892
Buy
Amazon•
The
Deal
To
Steal
680
•
•
•
•
RadioPlayMusic
VRA4502
Buy
Amazon
•
PAGES-2-3FTC
•
FIGHTING
FRAUD WITH THE RED FLAGS
RULE
A
How-To Guide for Business
•••
As many as nine million
Americans have their identities
stolen each year. Identity
thieves may drain their accounts,
damage their credit, and even
endanger their medical treatment.
The cost to businesses -- left
with unpaid bills racked up by
scam artists -- can be
staggering, too.
ABOUT
ANTENNAS
Regulatory
Missteps
•
•
The
realationship between the
Government, its reglatory
agencies, and its citizens, is
one that could be described as
one who acts in the capacity as a
fiduciary. And it was John Locke
who wrote, "Government has no
other end than the preservation
of property."
•
• Regulatory
seizure of private assets and the
use and/or sale of thereof by an
agency of the government, is a
threat to our private property
rights, no matter when or where
they may arise. Any regulatory
seizure of private property must
be made clear to the public and
addressed through responsible
government
action.
• •
If industry leaders, legislators,
and even the Supreme Court agree
that the a Government regulatory
has repeatedly violated
Congress's intentions of any
Telecom Act, and needlessly
allowed for the property rights
of companies and/or patent
holders to be violated under any
Telecom Act since 1908, is a
breach of a government fiduciary.
• •
Forced access is a dismal policy
failure whose time must end.
For
the purpose to demonstrate this
breach, the Telecom Act of 1996
is used as a model, along with
the Telecom study in 2005 by PCI:
CROSSED LINES: Regulatory
Missteps in California Telecom
Policy.
• •
Absent
reform, and the payment of
entitlements for the frequencies
seized from NBStubblefield,
and the rest of the Smart Daaf
Boys since 1902, telecom
policies that inhibit investment
and innovation will continue to
undermine job creation and
economic growth, while inducing
businesses to locate
abroad.
•
•
Congress intended to modernize
the nation's networks with
passage of the Telecommunications
Act of 1996. But through a series
of missteps by state and federal
regulators, the Act devolved into
one of the worst examples of
corporate welfare and regulatory
abuse in recent times.
•
•
Principally, the practice of
forcing the "Baby Bells" and
other so-called incumbent phone
companies to share their wire
line facilities with rivals at
government-set rates, dubbed
"forced access," has inhibited
investment in new, more modern
and competitive networks. In no
other state is this regulatory
debacle more apparent than
California, which can ill afford
continued losses in the telecom
sector.
• •
This report, along with the
contributors to this NBS100
study, examines the developments
leading up to the passage of the
1996 Telecom Act, the effects of
forced access in California, and
the challenges facing the telecom
industry at a time of
unprecedented regulatory
uncertainty.
•
•
Wireless
telephony presented, not only the
greatest competitive challenge to
wired line service in the 1900s,
but at present.
• •
The
failure of state and federal
regulatory policy to stimulate
meaningful competition in wire
line services does not mean that
consumers lack for choices in
local calling services. Seemingly
by the ends day, affordable
telecom technologies and new
applications come to market place
out of nowhere, like Marconi's
Dit Dahs and Stubblefield's
wireless Voice systems did in the
1890s, and today's Internet and
the wireless broadband video
telephone.
• •
What skewed the Marconi and
Stubblefield wireless voice
telephone, was the name change,
and it's challenge to replace
land line phones with wireless.
Of course history tells us, that
dit dahs out performed voice
radio transmission until the
mid-1940s, because of pre-war and
post war regulatory frequency
seizures. After World War One was
over in 1918, with Germany, so
was the radio wave war between
Dit Dah Code vs walkie talkie
wireless
telephones.
• •
But, AT&T was still the
Telecom leader on American
continent, because of its
landline telephone and wireless
telephone monopoly. At one time,
they claimed to have the rights
to all ads sold on local Radio
Broadcast stations that were
utilizing their landlines as an
arial, to extend their listening
audience.
•
•
Cellular
subscriptions have increased from
just 92,000 nationwide in 1984 to
more than 165 million
today.
•
34
• •
A
primary factor driving this
extraordinary growth was the
decision by Congress to relax the
FCC's grip on the broadcast
spectrum. In the early 1990s, the
FCC had restricted the number of
wireless carriers to two per
market. The 1993 Budget
Reconciliation Act, however,
forced the FCC to auction
spectrum for up to six carriers
per market. Consequently, by
2003, more than 95 percent of the
nation was served by at least
three wireless
services.
•
35
• •
This
growth is entirely due to
wireless carriers competing in
the open market to build their
own networks, with none of the
regulatory management of growth
that has characterized wire line
competition. Opening the market
dramatically lowered prices. The
average revenue for wireless
service dropped from 47 cents per
minute in 1994, before the
spectrum auctions, to 29 cents in
1998; 18 cents in 2000; and 11
cents in 2002.
• •
Simply
put, the average price per minute
for wireless service decreased by
more than 75 percent in the seven
years after Congress eased
federal regulation of the
spectrum.
• •
During
the same period, average monthly
cellular usage by consumers rose
from 119 minutes per month in
1994 to 427 minutes per month in
2002.
•
•
In response to the "open market",
created by
DeForest RADIO TELEPHONE COMPANY,
Nathan B. Stubblefield's Wireless
Telephone Company and
his
All Purpose - Wireless Telephone
Patent,
the DeForest Audion Patent, the
formation of the CONTINENTAL
WIRELESS TELEPHONE AND TELEGRAPH
COMPANY, 1909, and a few other
newly
filed wireless telephone patents,
and to the burgeoning land-line
competition, American Telephone
and Telegraph (AT&T) began
buying up the stock and patents
of their bankrupt rivals. But
AT&T's acquisitions troubled
federal authorities, which began
considering antitrust action.
This prompted AT&T company
officials to propose what
subsequently became known as the
"Kingsbury
Commitment," as more fully
described
herein.
See Contents
•
•
By
lawmakers' reasoning, competitors
would need to establish market
share before they would build
independent facilities with which
to compete, and it worked. What
followed was a new industry that
became bigger and better than
what happened after Congress came
up with their telephone vs.
wireless "radio" telephone,
"Kingsbury Commitment," in 1913.
The 1996 Act, created portals
companies like Google and Yahoo;
and online stores like Amazon and
Ebay. AT&T:
History: Milestones in AT&T
History - 1913
•
•
Congress
delegated to the FCC the
authority to determine which
facilities should be shared, and
how various parts of the network,
called "unbundled network
elements" (UNE), as well as the
entire network platform (UNE-P)
would be priced. However,
lawmakers did establish an
eligibility baseline for this
subsidized access. It was not
intended to be an entitlement.
Eligibility was supposed to be
based on whether a competitor
would be "impaired" from
competing if there was denied
access.
• •
Section 251 of the 1996 Act
directs the FCC to "consider, at
a minimum, whether … the
failure to provide access to such
network elements would impair the
ability of the telecommunications
carrier seeking access to provide
the services that it seeks to
offer." (Emphasis added.)
• •
The FCC established a pricing
formula for network elements,
called "Total Element Long- Run
Incremental Cost" (TELRIC), based
on the cost of building and
operating a hypothetical
maximum-efficiency network. The
rates subsequently calculated by
most states cover an irrationally
broad range, and most have proven
to be economically
unsustainable.
•
• As
can be seen, the principal
problem of wireless and land-line
networking, is not only the
actual regulatory seizure of
private property,
but
the fear of seizure of corporate
assets after the conviction of a
dishonest corporate officer.
Rambastic Judges, prosecutors,
court fines, restitution and
bankruptcy, always takes its
toll. Once the "takeover - merger
syndrome" sets in,
it
invariably skews investment
incentives for the general
public. (i.e.
- the buyout of MCI by Verizon in
2005).
•
• In
any subsequential serial sets of
mergers and acquisitions,
experience has shown that it
usually
reduces the number of regional
operating companies from seven to
four: SBC, Verizon, BellSouth,
and Qwest. In California, Pacific
Telesis Group (Pacific Bell) was
acquired by SBC in 1997, and
Verizon acquired GTE, another
California carrier, in
2000.
• •
Competition in long distance
service yielded dramatic consumer
benefits. As shown in Figure 1,
average revenues per minute for
interstate and international
calls originating in the United
States dropped from 62 cents per
minute in 1983 to 10 cents per
minute in 2001. In many
instances, calling across state
lines and even international
borders costs less than toll
calls within a single state.
Effect
of Competition on Long Distance
Revenues - JUDGE GREEN
RETAINED JURISDICTION OVER THE
CASE FOR MORE THAN A DECADE,
EFFECTIVELY ELEVATING HIMSELF AS
THE NATION'S TELECOM CZAR.
VIRTUALLY EVERY MAJOR BUSINESS
DECISION REQUIRED APPROVAL BY
BOTH THE JUDGE AND THE
FCC.
• •
The drawbacks to the regulated
monopoly approach are now more
widely recognized. Firms that
enjoy government protection from
competition, and for whom rates
of return are guaranteed through
regulation, face less financial
pressure to innovate or operate
efficiently.
• •
Moreover, bureaucrats often
become so committed to the
regulatory structure that they
regard competition as a threat
rather than as a potential
solution to the very structural
conditions that led to the
adoption of
regulation.
•
•
In enacting the Communications
Act of 1934, Congress authorized
the new agency to impose telecom
service requirements at regulated
rates. Any deviations in product
or service required government
approval. Odd as it may seem,
these regulatory structures still
partially persist even as Moore's
Law -- the predicted doubling of
data density every 18 months --
accelerates the pace of
technological
change.
• •
But as noted by a 1988 Department
of Commerce report: "The chief
focus of the Communications Act
of 1934 was on the regulation of
telecommunications, not
necessarily its maximum
development and promotion. (T)he
drafters of the legislation saw
the talents and resources of the
industry presenting more of a
Challenge to the public interest
than an opportunity for national
progress." •
9
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