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Call-back services called into question - again


Telekomunikacja Polska SA, which would benefit most from the move, remained apathetic to the announcement, while call-back operators took the news in stride.
"The Ministry intends to study the appearance of call-back operators and determine what level it is at," said Stanis*aw Popio*ek, vice minister of communications. "Then we plan on fighting it."
The lone call to arms by the Ministry of Communications follows an order issued in mid-June by the U.S. Federal Communications Commission which promises assistance in regulating call-back to countries which have declared it illegal.
To take advantage of the offer of comity, a foreign government must provide documentation of its legal restriction on international call-back services, evidence of violations by particular carriers, and a description of its enforcement measures.
Scott Harris of the FCC's International Bureau said there are currently about six countries which have declared call-back services illegal, mostly in Latin America. He also pointed out that some countries in Asia, like Hong Kong, have endorsed call-back as a good way to open up the market to competition. "And we think governments that embrace competition will be better off for it," Harris added.
Popio*ek said that this move is intended not to protect TPSA's monopoly, but simply to uphold the existing law.
"If you look into the Law on Telecommunications you'll see that international connections are reserved exclusively for Telekomunikacja Polska," Popio*ek said. "This may be legal in America, but, as you know every country has its own regulations. And here it is illegal."
Ironically, the one company that would gain if the ministry is successful in its crusade doesn't seem to care much for the vice minister's efforts.
"Of course no one likes to have that kind of operation on their turf, but it's not something that will bring TPSA to its financial knees," said TPSA spokesman Krzysztof Bartnicki. "We lose more each year from theft of fiber-optic cables and vandalism than from call-back." Last year TPSA reported net profits of z*. 664 million ($285 million) on sales of more than z*. 3.5 billion ($1.5 billion).
Call-back operators like BCH doubt whether the government will be able to eliminate competition to the Polish monopoly. "It's all a lot of hot air," said Ross Epstein of BCH. "They're just making a lot of noise to try to scare people away from the service."
"It's the same old story," Epstein continued. "Monopolists don't like it, they're scared of it, but by the time they do something about it, the technology will change anyway." Most call-back operators are moving into new fields like calling cards - the government hasn't said anything about this type of service offered by companies like AT&T, MCI, and Sprint - and some expect that the internet could provide the next cheap telecommunication solution.
Others said that the government's attempt to outlaw the service could actually do them good. "This is great advertising for us," said Gary Granai of American International Business Group. "We've already had some calls since the ministry's announcement. If the ministry is against us, then people want it."

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