US:PA-4: consortia - customers or service providers?
consortia - customers or service providers?
Bob Carlitz (bob@hamlet.phyast.pitt.edu)
Wed, 8 Oct 1997 13:43:49 -0400
Recurring themes in this seminar have been the question of eligible
entities and the question of consortia which may involve ineligible
entities such as municipal governments and community groups. In
discussions at Information Renaissance we have come up with a possible
solution to the problem posed by the FCC's restrictions on the role of
eligible members in consortia formed to purchase telecommunications
services.
The solution involves distinguishing _customers_ of telecommunications
services from _providers_ of such services. Suppose that a
consortium of ineligible entities was formed to buy telecommunications
services at some reduced bulk rate. And suppose that this
consortium resold these services to schools and libraries in their
region. Such a consortium would play the role of a service
provider to these schools and libraries. The consortium would
not be eligible to receive discounts for services it _purchases_,
since it involves ineligible entities and it is engaging in
reselling, both of which disqualify it for receiving discounts
under the Telecommunications Act. But such a consortium could
be reimbursed for services it _sells_ to schools and libraries,
much as any service provider can be reimbursed for services it
sells to eligible schools and libraries.
Of course the mechanics of setting up a consortium to function
as service provider in this sense might be beyond the abilities
of many municipalities, but there might be significant economies
of scale in such an operation. One could in fact contemplate
a state-wide service provider of this sort. Information
Renaissance will continue to investigate this option.
Bob Carlitz