Date: Mon, 14 Sep 1992  18:59:01 EDT
From: Message Center <FZC@CU.NIH.GOV>
Newsgroups: comp.dcom.telecom
Subject: Allen Frischkorn: Untangling Telecommunications Regulations
Reply-To: Paul Robinson <TDARCOS@MCIMAIL.COM>
Organization: TELECOM Digest
X-Submissions-To: telecom@eecs.nwu.edu
X-Administrivia-To: telecom-request@eecs.nwu.edu
X-Telecom-Digest: Volume 12, Issue 713, Message 6 of 16

Andrew Jenks, {Movers} Washington Technology Magazine
September 10, 1992, Page 33

[Sidebar:Photo of Frischkorn above address:
         Allen R. Frischkorn, Jr., President
         Telecommunications Industry Association
         2001 Penn. Ave. NW, Suite 800
         Washington, DC 20006
         (202) 457-4912
]

   As the revolutionary court decision that split away the seven Baby
Bells enters its second decade, demonopolization, far from reaching
completion, is only now entering its most critical juncture: lifting
the three major provisions that now prevent the seven from entering
information services, long distance service, and manufacturing.

   Charged with mediating the competing interests of manufacturers is
Allen R. (Mike) Frischkorn, president of the Telecommunications
Industry Association, a leading voice for equipment manufacturers.

   But speaking with one voice for a group of 500 firms covering 95
percent of the telecommunications market is no easy task.  An ongoing
battle between TIA's board of directors and an insurgent group of
smaller members has split the association over how and if to allow the
Bells into manufacturing.

   On one side of the debate is AT&T; on the other a group of small
companies.

   "There is a small group of companies that do support the Bells
getting into some aspect of manufacturing," admits Frischkorn.  But,
he adds, "85 percent of our members oppose the Bells getting into
manufacturing."

   Still, Frischkorn admits that relaxing at least some of the
restrictions could open up much-needed financing for smaller
companies.  So TIA is entertaining a shift in position.

   Frischkorn envisions three scenarios:

   -  Allowing the Bells to fund other companies and take back
      royalties.
   -  Permitting joint ventures between the Bells and others.
   -  Allowing the Bells to do R&D on their own and contract out
      with companies to do actual manufacturing.

   "You can never satisfy everyone," he says.  "You have to strive for
consensus."

   But Frischkorn adds that perceptions of dissent over the
manufacturing issue have been inflated by intense lobbying from the
Bells.

   As for his sense of the political winds, Frischkorn sees "total
legislative gridlock."

   Resistance from the powerful Jack Brooks, D-Texas, has rendered the
Bells' once-promising legislative trump nearly useless.

   "The RBOC strategy has shifted to the courts," says Frischkorn,
noting that in the area of information services in particular the
Bells have made huge strides in the courts.

   But Frischkorn is not opposed to change, and he realizes that
sooner or later the Bells will enter most of the restricted markets.

   "Safeguards [preventing monopoly abuses] are expensive and
ineffective," says Frischkorn.  "There are two ways to prevent
discrimination.  Complete structural separation [of lines of
business].  Or let the RBOCs manufacture when they no longer have a
local-loop monopoly."

   Frischkorn says competition in local services is the best guarantee
of fair-play in manufacturing.  "They will have to buy equipment at
the best price to survive -- just like AT&T in long distance."