‘Dominant carrier’ regulation of long distance services no longer...

“Dominant carrier” regulation of long distance services no longer makes sense, Verizon told the FCC Thurs. in a 30- page “competitive analysis” of the market. A separate long distance market no longer exists, Verizon said. It’s now an “'any distance’ market for communications services regardless of geography,” it said: “Under current market conditions, there is no plausible argument that traditional wireline carriers could use their local networks to dominate the long- distance component of voice services at issue here.” In assessing the market, the FCC should weigh the wide variety of voice services, and substitutes for voice services, offered, the company said. Cable, wireless, VoIP and new technologies like instant messaging compete with wireline voice service, Verizon said: “Re-regulating Verizon and other carriers as dominant in the provision of long-distance service is unnecessary and counterproductive.” The company filed the document in a proceeding the FCC opened several years ago to see if the Bells should face stronger control of long distance operations when combined with local businesses. The Telecom Act’s Sec. 272 required Bells to run their new long distance operations in separate units, but with reduced regulation. The subsidiary requirement has “sunset,” but Bells have hesitated to combine their operations because it would subject the long distance service to the stiffer dominant carrier regulation imposed on local services. Qwest, AT&T and Verizon also filed forbearance petitions seeking to end the dominant definition for long distance service (CD Jan 26 p3). The FCC must act on Qwest’s petition by Tues. or it takes effect automatically. A Verizon spokesman said the company is revisiting the Separate Affiliate proceeding (Doc. 02-112) because it thinks “a broader rulemaking is more constructive” than action through the forbearance process. The filing gives Verizon a chance to “chronicle the successes of recent FCC policymaking,” which led to the increased competition that makes dominant carrier regulation unnecessary, he said.