* Separate convergence developments involving AOL, FCC
Today we’d like to take a quick look at two recent news items having to do with bundling voice and data.
The first announcement comes from AOL, which is adding a VoIP service to its portfolio, according to comments made at VON by CEO Jonathan Miller. Details like pricing and features were not available, but we would expect pricing to be competitive with AT&T and Vonage.
AOL already offers VoIP services in Canada. An AOL spokesperson said the service will be rolled out this month.
Our two cents’ worth: We welcome another competitor in the carrier-class voice market. However, even if AOL adds a credible broadband supplier to its VoIP for a “double play,” it is still one play short when competing against a “triple play” service provider.
The second item is a recent FCC ruling on DSL and voice service bundles. BellSouth, Verizon, and SBC all offer their DSL service bundled with a basic voice service line; DSL cannot be purchased without the voice service. (Qwest offers DSL as an unbundled service.) State regulators in Florida, Georgia, and Louisiana believed that BellSouth should unbundle its DSL, allowing subscribers to purchase broadband from one provider and voice service from another. In December 2003, BellSouth filed with the FCC against the state regulators, and last month the FCC sided with BellSouth.
In a statement, Jonathan Banks, BellSouth vice president of federal executive and regulatory affairs said, “This action reaffirms the FCC’s triennial review decision that the FCC, not state regulators, decides what network elements must be unbundled.”
Our analysis: Looks like the ILECs can add another FCC “feather to their cap” on the heels of the FCC’s ruling in their favor on UNE-P pricing.
