053-939-4 Cover design by Leslie Genser © 2005 ARTECH HOUSE, INC. 685 Canton Street Norwood, MA 02062 All rights reserved. Printed and bound in the United States of America. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the publisher. All terms mentioned in this book that are known to be trademarks or service marks have been appropriately capitalized. Artech House cannot attest to the accuracy of this information. Use of a term in this book should not be regarded as affecting the validity of any trademark or service mark. International Standard Book Number: 1-58053-939-4 10987654321 Contents Hybrid Fiber-Coax (HFC) Gave Cable Providers an Advantage on "Triple Play" RBOCs Took the Threat Seriously Hybrid Fiber-Coax Is Developed Cable Modems Sparked a Cable ISP Boomlet Fiber to the Home Kept Moving Further into the Future Exuberant Prices for Existing Systems as Industry Consolidated Overbuilding Was Often a Costly Disaster Endnotes DLECs and ELECs: An Exercise in Oversupply DSL First Failed as a Video Offering The Telecom Act Invites Novel Use of Unbundled Loops Collocation Did Not Come Cheap ILECs Controlled the Mass Market for DSL Capital Poisoning Led DLECs to Overexpand Dropping Like Flies Survivors Face the ILECs' Regulatory Might Ethernet LECs Were Data CAPs Endnotes CLECs' Winning Strategies Are Met by Rule Changes The Telecom Act Anticipated CAPs and Resellers Total Service Resale Had Little Value or Margin State Commissions Had to Administer Federal Rules Unbundled Network Elements Reduced Capital Needs Initial Strategies for Serving "Classical" Voice Business "Smart Build" and UNE-Loop CLECs UNE Platform Displaced Resale and Discouraged UNE-Loop EELs Created an Opportunity to Serve Businesses The ISP Dial-In Business and CLECs: A Match Made in Heaven Contents Preface Acknowledgments Ma Bell and Her "Natural Monopoly," 1876-19