Armstrong: Regulators Just Don't Get it
By BroadCasting & Cable Staff -- Broadcasting & Cable, 2/11/2001 7:00:00 PM
Misguided regulation is hindering local telephone competition, over both cable and traditional lines, AT&T Chairman Michael Armstrong told the National Press Club last week.
The problem is two-fold, he said. First, the FCC's 30% cap on cable companies' national household reach prevents AT&T from rolling out cable-phone service nationwide.
Second, regional monopolies' wholesale rates are so high that competitors cannot make a profit by leasing traditional lines. "The Bell companies still have a tight grip on Boardwalk," Armstrong said, "and now they're closing in on Park Place."
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