FCC - éléments

See Packet Communications, Inc., <13 FCC 2d 922 (1973). Value added networks lease channels from AT&T or other carriers and provide additional equipment and services of value, such as protocol processing, to their customers. Protocol processing enables data communications between otherwise incompatible terminals.

In the United States, this distinction prompted the FCC to initiate a series of “computer inquiries.”02 In the first inquiry, the pivotal 1971 Computer Inquiry I, the FCC granted an important concession by deciding to not regulate the data processing sector. This decision subsequently marked the beginning of remote time sharing bureaus, the precursors to today’s VAN providers.68

63 Id.; In re Amendment of Section 64.702 of the Commis- sion’s Rules and Regulations, 64 F.C.C.2d 771 (1977).

68 A VAN is a privately owned packet switched network upon which a service provider provides data processing services to the public. Typically, a VAN service provider owns a set of packet switching nodes and then links the nodes with circuits leased from PTOs. See Stallings, supra note 27, at 345. VAN services include voice mail, e-mail, video conferencing, caller ID and electronic data interexchange. See Noam, supra note 19, at 373-77.

The Commission continued its examination of these issues in the Computer II proceeding, which it initiated in 1976.* In Computer II, the Commission reaf- firmed its basic regulatory approach to the provision of computer data services, but refined its analysis. In particular,

The Commission, attempting to define and distinguish regulated telecommunications services and unregulated data services, created the categories of “basic” services and “enhanced" services."’ The Commission also specified in greater detail the extent of structural separation required between the incumbent telephone provider and its enhanced services affiliate."

Specifically, the enhanced services separate subsidiary was required to:

(1) obtain all transmission facilities from the parent under tariff;

(2) elect separate officers;

(3) maintain separate books of account;

(4) employ separate operating, installation, and maintenance personnel;

(5) perform its own marketing and advertising;

(6) enter into transactions with any affiliated manufacturing company only on an arm’s length basis;

(7) utilize separate computer facilities in providing enhanced services; and

(8) in general develop its own software or contract with non-affiliates for such software.”

Thus, in Computer II, the Commission reaffirmed its commitment to its essen- tial policy of regulating only the common carrier “basic” transmission service, while exempting “enhanced” services from common carrier regulation. The Commission also continued to emphasize the need for competitive safeguards to ensure that common carriers did not compete unfairly against unaffiliated com- puter data services providers.