WASHINGTON-Competition in the local loop does not need to come from wireline competitive local exchange carriers, it can come from wireless carriers, a high-level executive told the Senate communications subcommittee last week.
“We truly do fulfill the intent of the [The Telecommunications Act of 1996] in the markets where we operate … We take the dream of wireless to the local loop … We think Cricket is bringing competition to the local loop,” said Dan Pegg, senior vice president of Leap Wireless.
Cricket is Leap’s operating concept that allows customers to pay $30 per month to use their wireless phones to make and receive all the calls they want within the local wireless calling area that is larger than the local landline calling area. Customers can buy long-distance service only from Leap, and roaming is not available.
From March-when Leap entered into an agreement with Chase Telecommunications in Chattanooga, Tenn.-to August, 12,400 customers have signed up for Cricket service, about 4 percent of the available population.
“Cricket brings wireless communications to the mass market in the same way Ford created affordable automobiles, Wal-Mart created an affordable retail shopping destination,” Pegg said.
The Senate hearing focused on the lack of landline competition. Many senators lamented the fact that the regional Bell operating companies were not participating in the hearing.
Sen. Conrad Burns (R-Mont.), chairman of the Senate communications subcommittee, said the Baby Bells had been invited. Sen. Ernest Hollings (D-S.C.), ranking member of the Senate Commerce Committee, said those participating at the hearing were “nibblers,” not the big fish in the marketplace.
Roy Neel, president and chief executive officer of the United States Telecom Association, represented incumbent LECs at the meeting. Neel complained competitive LECs tell different stories to telecommunications policy- makers and Wall Street. “Everyone here [says they] represent rural markets … they are not going to do it. They will go to Wall Street and tell them they are not going to do that,” Neel said.
