ILECs Object to FCC's IP Tech Transition Proposals for Replacing Copper Services

Incumbent telcos opposed the FCC's tech transition proposals for assessing the adequacy of IP-based services intended to replace legacy copper-based phone services being discontinued. They said the commission’s proposed standards could slow the IP transition and broadband deployment, with AT&T suggesting it would be unlawful. Rural carriers asked the agency to clarify that they were covered by a rural exemption. But competitors, consumer groups, public safety groups, state regulators, electric power groups and others voiced varying degrees of support for proposed criteria, and some suggested additional criteria, including on affordability.

The parties were commenting on a Further NPRM the FCC approved on Aug. 6 that accompanied a tech transition order for telecom carriers moving from copper-based networks and services to fiber networks and IP-based services. The order requires ILECs to notify customers and interconnecting carriers and ISPs about planned copper retirement, and to file applications under Section 214 of the Communications Act when they plan to discontinue traditional services to retail end users. ILECs seeking to discontinue special access and “commercial wholesale platform” services affecting CLEC end users must offer rivals replacement “wholesale access on reasonably comparable rates, terms and conditions,” the FCC said.

The Further NPRM proposed to codify general discontinuance standards and sought comment on its tentative conclusions that the criteria should include, among other things: “(1) network capacity and reliability; (2) service quality; (3) device and service interoperability, including interoperability with vital third-party services (through existing or new devices); (4) service for individuals with disabilities, including compatibility with assistive technologies; (5) PSAP [public service answering point] and 9-1-1 service; (6) cybersecurity; (7) service functionality; and (8) coverage.”

AT&T said the FCC’s approach for evaluating ILEC upgrades was “flatly inconsistent” with its stated support for the IP transition. Instead of easing the replacement of “yesterday’s TDM networks with advanced IP networks,” the agency proposes to create obstacles to the transition “under the misguided belief” they are needed to preserve competition, consumer protection, public safety and universal service, the telco said in comments due Monday (for other filings, see docket 13-5). AT&T fully supports those values but not “the slew of regulatory hurdles” ILECs would have to clear to replace TDM with IP services. The hurdles are unlawful, unnecessary and even harmful because they would impede broadband deployment, particularly in rural America, said AT&T, which urged the FCC to scale back its proposed requirements.

Verizon urged the FCC “not to recreate roadblocks” to ILEC modernization, but to streamline the discontinuance process, particularly for outdated or highly competitive services. The commission should create a “safe harbor” for automatically granting such discontinuance applications, and simplify its proposed criteria, the telco said. CenturyLink said there was no need for a “fact-intensive inquiry” where competitive wireless and wireline voice services were available. Instead, the agency should create a “rebuttable presumption” that interconnected VoIP, 3G/4G wireless, fixed wireless qualifying for Connect America Fund support and competing TDM voice service are reasonable substitutes, it said.

USTelecom said the FCC should “embrace new networks” by minimizing “the costs, delays and burdens of companies" moving to fiber and IP systems. Rather than impose additional requirements only on ILECs, the commission should encourage competition “with the dominant cable providers,” the ILEC group said. ITTA said the proposed ILEC-focused regulation “perpetuates competitive disparities,” ignores marketplace advances, and undermines the tech transition and broadband deployment. The Telecommunications Industry Association said “spending to maintain copper infrastructure comes at the expense of new investment.”

NTCA and other rural groups said the tech transition orders created “confusion and concern” among rate-of-return carriers, which traditionally haven’t been involved in discontinuance filings but now wonder whether the commission will “second-guess” their decisions. The FCC should clarify that RLECs would “rarely, if ever, need to” make discontinuance filings when upgrading their networks, the groups said. Similarly, the Alaska Rural Coalition urged the FCC to expressly acknowledge that rural telcos would be exempt from the new regulations.

Incompas urged the FCC to ensure ILECs provide adequate notice and time for competitors to transition from TDM systems to IP wholesale replacements. The commission should also ensure ILECs provide complete and accurate information and act in good faith when responding to reasonable information requests from interconnecting carriers, the group said. XO Communications said ILECs should be required to give one year’s notice to wholesale customers when planning to discontinue, reduce or impair services used as wholesale inputs. XO also suggested various criteria for deciding whether ILECs were operating in good faith, such as time limits for responses.

The FCC shouldn’t link the reasonably comparable access rule for commercial wholesale platform services to the pending special-access rulemaking, Incompas said. The Wholesale Voice Line Coalition said completion of the special-access proceeding is a “particularly poor choice” for an end date to the wholesale platform requirement. It and Granite Telecommunications said the requirement should have no sunset date because competitive wholesale alternatives won’t be generally available for some time to come.

Public Knowledge and others said all the proposed discontinuance criteria should be met by a single service in order for it to be considered an adequate replacement. Any proposal to allow ILECs to split their replacement service obligations over multiple services would encourage carriers to “balkanize services and offer sub-standard ‘bare bones’ services to vulnerable communities, while simultaneously extracting rents,” the groups said.

The AARP said the rulemaking was important for seniors due to their reliance on legacy TDM services. The group said the proposed criteria offer “a foundation for a reasonable roadmap” to the tech transition, but it expressed concern the Further NPRM proposed to exclude certain issues from consideration. The FCC’s recent backup power order isn't sufficient because it doesn’t set requirements for next-generation networks to work during power outages, it said. AARP also disagreed with the agency’s “assertion that affordability need not be addressed” as part of the discontinuance process.

The Communications Workers of America, Greenlining Institute, National Association of State Utility Consumer Advocates, state regulatory commissions in Michigan and Nebraska, and the Utilities Telecom Council (UTC) agreed affordability should be an important IP replacement consideration. The CWA said an ILEC’s labor record was also relevant.

Telecommunications for the Deaf and Hard of Hearing Inc. (TDI) and others focused on standards for IP-based real-time text (RTT) replacements for traditional text-telephony (TTY) services. They said “interoperability of accessibility services” should be a major consideration, and called for adopting a specific RTT standard and a gradual transition from TTY. The Disability Coalition for Technology Transition said solutions were needed for consumers with disabilities already “experiencing garbling, dropped packets, audio issues, and data connection stability issues” due to the IP transition.

NARUC said the FCC should continue “technology neutrality” and “cooperative federalism.” The state regulatory group agreed with an FCC proposal that one criterion for judging replacement services is whether they meet minimum service quality standards set by state commissions. State regulatory commissions in Michigan, Nebraska and Pennsylvania supported the establishment of “clear” IP transition standards or criteria. The Appalachian Regional Commission focused on possible replacement of copper networks by wireless services, which it said often aren’t available or reliable in rural areas.

The National Emergency Number Association agreed specific discontinuance criteria were warranted, and it said “wireline-equivalent 9-1-1 service must be available to consumers.” The Texas 9-1-1 Alliance said the FCC must require that replacement services “provide validated 9-1-1 ‘dispatch address’ information and all associated wireline 9-1-1 functionalities.”

The Edison Electric Institute (EEI) and UTC backed the proposed discontinuance criteria, but said the FCC should consider additional metrics to ensure reliability for telecom services provided to power companies, which are a "critical infrastructure industry." The EEI and the National Rural Electric Cooperative Association voiced concern about proposed carrier “self-certification.”

The Alarm Industry Communications Subcommittee also cited reliability as a key concern, and said replacement services should be “functionally equivalent” to legacy services, and provide 99.999 percent reliability. ADT Security Services asked the FCC to adopt a “managed facility voice network” rule based on interoperability principles it developed with AT&T that have also been adopted by Verizon.