Competitors Decry AT&T, Verizon 'Sneak Attack' to Hike Business Broadband Rates
Rivals slammed an "anti-competitive ploy" by AT&T and Verizon to raise broadband prices on business customers as the FCC reviews its treatment of business data services (BDS). In filings, members of the Broadband Coalition, Incompas and others "sounded the alarm" on the Bells' "latest attempt to manipulate the market" through "lock-up sales conditions," said a release Monday from the coalition. Members include EarthLink, Level 3 and Windstream.
The Bell critics said AT&T and Verizon responded to a recent FCC tariff order curtailing certain incumbent telco pricing practices (see 1604280057) by scrapping cost-saving provisions and simply raising their rates. The release said the FCC must act by Friday to prevent the rate hike.
“This rate hike sneak attack by AT&T and Verizon is a brazen display of market power, and a slap in the face to business customers who want more choice, lower prices and better service,” said a Broadband Coalition spokesperson. “It’s as if the Big Bell companies were told to stop stealing the lunch money, and retaliated by shoving their competition into a locker," the spokesperson added. “It’s time for the FCC to stop the Bells’ bullying by reforming the Business Data Service market to bring more cost saving competition, investment and innovation.” The filings accompanying the release didn't have docket numbers on them. They were made by: (1) Birch Communications, EarthLink, Incompas, Level 3, Sprint and Windstream; (2) Windstream; and (3) Windstream, Incompas, EarthLink and Sprint.
Incompas, which recently joined Verizon in making joint proposals to the FCC for a new BDS framework (see 1606270058), emailed a statement from Angie Kronenberg, the group's general counsel: "We agree that rate hikes while the reform proceeding is still ongoing is further demonstration that there is [a] serious problem in the BDS market place that deserves Commission attention and action."
AT&T and Verizon didn't immediately comment.