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Enron Mail |
Part of of the Yeager issue...
----- Forwarded by Scott Bolton/Enron Communications on 06/30/00 11:49 AM ----- Cynthia Sandherr@ENRON 06/26/00 01:38 PM To: Scott Bolton/Enron Communications@Enron Communications, Stephen D Burns/Corp/Enron@ENRON, Chris Long/Corp/Enron@ENRON cc: Joe Hillings/Corp/Enron@ENRON, Richard Shapiro/HOU/EES@EES Subject: Regulatory Info and discussions on digital divide fyi...... ---------------------- Forwarded by Cynthia Sandherr/Corp/Enron on 06/26/2000 04:45 PM --------------------------- From: Scott Yeager@ENRON COMMUNICATIONS on 06/26/2000 11:43 AM CDT To: Cynthia Sandherr/Corp/Enron@ENRON cc: Subject: Regulatory Info and discussions on digital divide Thanks for the note. I will call Royce. By the way there is a new book out called "Tele-Revolution" by Richard G. Tomlinson. It has the MFS story in it. I will be getting copy of my book for you in the next month or so. Also attached is a new powerpoint I worked on over the weekend to use to discuss the Regulatory issues associated with the EBS business. Look it over and lets talk. Here is the memo I sent out internally. A regulatory conference call precipitated a bunch of discussion last week and I have been talking to Griebling and Jim F.about the need for an overall strategy from a regulatory perspective. Below is my view of the issues and my attempt to scope the discussions that need to occur. We need to hire regulatory group that has dealt with these issues in Wash, DC, the PUC level the city Gov. level and Internationally. Jim F. has been given the name of a company that knows the issues and could help us decide how to proceed. I consider this to be a key strategic issue for the company. Also, we must now be concerned about the rising movement in Wash. DC to charge a tax on all revenues associated with the Internet as well as creating a Universal services fund as a result of the Digital Divide Debate. This has huge financial implications if we set it up wrong and they create a tax or Universal Services fund for bridging the Digital Divide. This may be one of the hottest topics in DC. and the mood is very much for the Democrats to push for such a tax on all dollars spent via the Internet. This would be a huge drain on EBS and other companies. Enron on line could also be hurt as well as all trading deals on the net. The other issue is the local loop for Wasabi and the implications of extending the pooling points to multiple carrier hotels in a city. Also later to the CO. Griebling has suggested we could file for a unique status, get some press, and bundle numerous ideas inot an entity that could sidestep the regulatory national and local loop issues in one fell swoop. Would be nice. We need to decide if the entity that goes to carrier hotels is the same entity that goes to the CO. If the entity that goes to the CO is a CAP or a CLEC or just does a commercial deal with the CAP that does business in the City. Should we do a deal with the CLEC to go to the CO or is the entity a CAP or CLEC? Do we just do business with the numerous existing CLEC's? This has huge implications to the franchise fee we would pay to be a CAP or CLEC which would be on all revenues so we would need to limit those taxes. If we choose to be a CLEC we would fall under the Universal Services fund and there could be other negative and costly requirements. What entity and how we commercially get to the CO is a key decision to make. We also need to make sure the entity that sells bandwidth via the Pooling points is never taxed via the Universal services fund as it exists today or could exist in the future. The other issue is the status of the company that owns the fiber and the DWDM equipment is it the same company as the poolling points and the IP layer the way it is today? What about the applications layer and what about the different commericial groups that need streams at the applications layer and the groups that need a Tiered QoS IP cloud? Can we claim we are not the internet and would hold a special status? Can the BOS and the EIN allow to claim a special status and would the pooling point extension to multiple carrier hotels allow us to have a special status? Luckily the Technology for All TFA efforts is something we can point to to show how proactive industry is being in bridging the Digital Divide and there is no need for the new internet based universal service fund some are talking about. That is one of the reasons that Ken Lay is on the board of TFA nationally. We need to get the TFA lab installed in the DC area to show off. Anyway, we need to now include that open issue of a potential tax on all internet transactions in our discussions of how we structure the company and make sure we would minimize the taxes assocated with selling things on the Net. Cynthia Sandherr@ENRON 06/22/00 04:43 PM To: Scott Yeager/Enron Communications@Enron Communications cc: royce.holland@allegiancetelecom.com Subject: Hello Scott: I had the pleasure of sitting by Royce Holland at a dinner hosted by Congressman Markey last evening. He asked me to say "hello" and ask you to call him sometime soon so you two can get caught up on each others lives. His phone number is 214-261-7105 and his e-mail address is listed above. On a different matter, would you please call me on the Discovery information I sent to you recently? My number is 202-466-9143. Many thanks.
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