Arizona Telecommunications & Information Council (ATIC) Multitenant Building Telecommunications Access Study PREVIOUS CONTENTS APPENDIX 4
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Arizona Department of Commerce (DOC)Appendix 4: Submitted Position Statements
Arizona Consumers Council (ACC)
Access to Multi-Dwelling Units Position Statement
The hallmark of our market economy is competition. Competition is defined as multiple buyers and multiple sellers seeking to come to agreement for products and services. These agreements should lead to the lowest price consistent with quality products and services.
For residents and businesses of Multi-dwelling units in the telecommunications area it means that providers must have access to multiple tenants. To restrict providers from access to buyers of telecommunications products and services in our fast moving, high-tech economy does a disservice to all participants.
The Telecommunications Act of 1996 mandated enhanced telecommunication products and services at affordable rates for all. In the Multi-dwelling market we canšt determine the lowest rates for products and services unless there exists a competitive market. If providers are prohibited from offering end use consumers their products and services because of preferential treatment by building owners and managers we will have created monopoly pricing and its consequent, high prices and poor service for these consumers.
The argument that these buildings are private property and therefore owners and/or managers can restrict access to telecommunication companies fails in the face of other utilities providing service to customers in these buildings and to all the laws and ordinances placed upon building owners before certifying that a building is acceptable for habitation. Additionally, in the retail area, an owner of a store can not restrict access to any customer who wishes to enter the establishment, unless their is a violation of health or safety laws. Tenants who are retail customers can not purchase what they want if competitors do not exist.
Of course, building owners should be reasonably compensated if, in fact, there is a definable cost in allowing competitors access to buildings, the wiring system, and the installation of equipment. These companies should return the building to its original condition. This should be on an equal basis for all providers. The playing field must be level for all. This will give all tenants, business and residential, access to the competitive market which hopefully will insure high quality products at low prices for all who take telecommunication services.
Full competition, if and when it comes to residential and small business consumers is still dependent upon actions of US WEST, other incumbent local providers and the conditions the Arizona Corporation Commission (ACC) establishes to enable competitors to enter the market on a level playing field. Up until now local competition has been minimal. Only businesses in core business districts have some access. It has been non existent in the residential market. Access to Multi-dwelling residential markets may help this situation somewhat. Competition will not occur until the residential market is open to all on an equal basis. If competitors can not obtain access to business and residential dwellings equal to the incumbents, competition will be non-existent. Present regulations and rates are keeping the system in a monopoly setting. The Commissions action of setting an unbundled rate almost twice the unbundled rate discourages any competitor from entering the market to provide local products or services.
If owners and managers of Multi-dwelling units are permitted to exercise the same monopoly power by allowing only one supplier access or charging monopoly rents for access, then we will have an anti-competitive situation. The same situation that exists in the local residential and small business market. Only by encouraging and demanding open access will we have a telecommunications system that will benefit all segments of our community.
Submitted by
Dr. Albert Sterman, Vice President
Arizona Consumers Council (ACC)
(602) 265-9625, E-mail: asterman@primenet.com
Multitenant Building Telecommunications Access Study PREVIOUS CONTENTS APPENDIX 4
returnNEXT Submitted Position Statements:
Arizona Department of Commerce (DOC)