INTEL URGES FCC TO CONSIDER REDUCING ILEC BROADBAND REGULATION

Intel suggestion that reducing ILEC regulation could stimulate broadband deployment has ALTS up in arms. Filing comments Mon. in FCC’s inquiry on status of advanced services, Intel expressed concern that placing unbundling requirements on ILECs’ last-mile broadband facilities could impede investment in advanced broadband infrastructure. It called on Commission to open rulemaking to determine whether continued unbundling rules, for example, would impede development of more advanced services in future. Seeing that as call for Bell company deregulation, ALTS Pres. John Windhausen issued statement Wed. saying Assn. “completely disagrees with Intel’s suggestion that deregulating monopoly carriers is the best way” to increase broadband deployment. What’s needed is more competition, not deregulation, ALTS Gen. Counsel Jonathan Askin said. He said deregulating Bells would make it even harder for competitors to get access to incumbent network elements and customers.

Intel isn’t taking sides and in fact sees competition as plus, said Peter Pitsch, Intel dir.-communications policy. Company’s interest is in expanding market for high-end microprocessors and if consumers have access to affordable, higher bandwidth they will want the microprocessors, he said. Competition -- at least 2 carriers -- could be good because it could lead to more affordable pricing for consumers, he said. However, it’s imperative that such bandwidth reaches consumer through last-mile deployment, and expanding current ILEC unbundling rules could be “counterproductive to investment,” Pitsch said. He said Intel’s filing concentrated on future, when there would be capability of much higher broadband service, assuming there was incentive for companies to develop it. Intel filing also encouraged FCC to look beyond current generation technology and “not be complacent” because most households now had capability to get DSL and cable broadband service, Pitsch said.

Comments were filed in FCC’s 3rd inquiry under Sec. 706 of Telecom Act, which requires agency to keep tabs on deployment of advanced services. Filing in same proceeding, BellSouth said Commission shouldn’t “deduce” that future growth could continue under “competitive inequities present in the current regulatory paradigm.” Although broadband has grown, it won’t reach its potential unless FCC makes sure it isn’t “stifled by antiquated regulatory policies,” BellSouth said. Company urged FCC to eliminate requirement that Bells unbundle advanced services equipment and lease such elements to competitors.

AT&T argued that best way to encourage broadband buildout was to continue “vigorous enforcement” of current regulations. “The rapid deployment of advanced capabilities confirms that the marketplace is working to bring advanced capabilities to Americans,” AT&T said. At least 30 organizations filed comments in inquiry (CC Doc.-98-146).