Midsize incumbent telcos urged the FCC to reject Incompas/Verizon proposals for regulating business data services (BDS) that the ILECs called meritless. "It should go without saying that the Commission may not, on the basis of an alleged compromise, adopt outcomes that are on their own indefensible," said CenturyLink, Frontier Communications, FairPoint Communications and Consolidated Communications in a filing posted Tuesday in docket 16-143, as cable companies and other parties continued to lobby regulators in anticipation of possible commission action this fall (see 1608260055).
Midsize incumbent telcos urged the FCC to reject Incompas/Verizon proposals for regulating business data services (BDS) that the ILECs called meritless. "It should go without saying that the Commission may not, on the basis of an alleged compromise, adopt outcomes that are on their own indefensible," said CenturyLink, Frontier Communications, FairPoint Communications and Consolidated Communications in a filing posted Tuesday in docket 16-143, as cable companies and other parties continued to lobby regulators in anticipation of possible commission action this fall (see 1608260055).
Incompas fired back at CenturyLink opposition to proposed rate reductions for business data services, saying the telco's cost claims are based on "unreliable evidence that contradicts public statements." Parties this week continued robust BDS lobbying of the FCC, which some expect to act this fall. Incumbent telcos, a cable company and allies urged the commission not to impose BDS regulation they say will discourage investment in deployment of high-speed fiber lines and other facilities. Meanwhile, U.S. TelePacific said AT&T's most recent BDS tariff filings still didn't comply with an FCC order.
Incompas fired back at CenturyLink opposition to proposed rate reductions for business data services, saying the telco's cost claims are based on "unreliable evidence that contradicts public statements." Parties this week continued robust BDS lobbying of the FCC, which some expect to act this fall. Incumbent telcos, a cable company and allies urged the commission not to impose BDS regulation they say will discourage investment in deployment of high-speed fiber lines and other facilities. Meanwhile, U.S. TelePacific said AT&T's most recent BDS tariff filings still didn't comply with an FCC order.
Parties backed the FCC 2015 tech transition order on the discontinuance process for replacing legacy telecom services provided over copper networks with IP services over fiber and other broadband networks. CLECs, their trade group Incompas, and Public Knowledge said the FCC correctly interpreted Communications Act Section 214 "to require approval for wholesale changes" to ILEC offerings that would limit consumer functionality. "Petitioner's contrary argument reduces to the assertion that service is not 'impaired' or 'reduced' when fax machines stop working, customers can no longer reach 911, medical monitoring devices stop working, and retailer credit-card readers do not function -- or even call clarity and reliability decline -- absent inconsistency with some representation in a tariff," they said in an intervenor brief (in Pacer) Monday to the U.S. Court of Appeals for the D.C. Circuit (USTelecom v. FCC, No. 15-1414). But Section 214 "is a licensing provision requiring a certificate of public convenience and necessity for any change" that degrades service, not just changes that create inconsistencies with tariffs, they wrote. The FCC properly decided Section 214 approval is needed for changes that degrade service to any customer, including CLEC customers, not just ILEC customers, and that ILECs should be required to provide reasonably comparable replacement services before discontinuing wholesale service, they said. The CLECs were: Access Point, BullsEye Telecom, Granite Telecommunications, Level 3, Manhattan Telecommunications, Matrix Telecom, New Horizon Communications, Windstream, Xchange Telecom and XO Communications. The Pennsylvania Public Utility Commission's brief (in Pacer) said the FCC adopted "forward looking" regulations to maintain "public safety, pro-consumer, pro-competition policies and protections." Citing the FCC determination that tech transitions shouldn't be a "pretext to limit" competition or "compromise" wholesale access, the PUC agreed the federal agency took reasonable action to ensure new IP services meet consumer and provider needs.
Associations and companies of every stripe support FCC efforts to streamline rules for so-called Team Telecom reviews of transactions involving foreign ownership, according to comments posted Friday in docket 16-155. “Protection of U.S. national security, law enforcement, and public safety interests need not entail the uncertainty, costs, and inequitable treatment embodied by the current Team Telecom review process,” said Level 3. Commenters want the FCC to hold executive branch review to certain timelines and reduce the scope of deals that trigger Team Telecom review, they said.
Some telcos are talking to rivals about business data service regulation in an effort to seek a broader compromise, according to industry officials. “Members of the mid-size ILEC coalition have reached out to Incompas and Verizon and conversations continue,” emailed Mike Saperstein, Frontier Communications vice president-federal regulatory. The other members are CenturyLink, FairPoint Communications and Consolidated Communications, he said Friday.
Some telcos are talking to rivals about business data service regulation in an effort to seek a broader compromise, according to industry officials. “Members of the mid-size ILEC coalition have reached out to Incompas and Verizon and conversations continue,” emailed Mike Saperstein, Frontier Communications vice president-federal regulatory. The other members are CenturyLink, FairPoint Communications and Consolidated Communications, he said Friday.
Cable companies lobbied the FCC against regulating business data service rates offered by new entrants. Comcast officials believe "the marketplace is increasingly competitive, and that the strong evidence of continuing investment by new entrants, expanding output, and declining prices militates heavily against the imposition of wide-scale rate regulation," said a filing posted Thursday in docket 16-143 summarizing meetings with FCC commissioner aides, General Counsel Howard Symons, Wireline Bureau Chief Matt DelNero and other staffers. "In light of the Commission’s goal of promoting facilities-based competitive entry, it would be especially counterproductive to subject new entrants in the BDS marketplace to rate regulation. We noted that even parties like Level 3 and Public Knowledge -- both of which favor a significant expansion of rate regulation for incumbents -- recognize that such measures should apply only to providers with market power, and that Verizon and INCOMPAS recently appear to have acknowledged that competitive providers should be exempt (at least for some period of time) from rate regulation." Cox Communications also urged FCC officials not to impose rate regulation on new entrants. AT&T, CenturyLink and Windstream made additional filings in the docket on recent lobbying visits.
Cable companies lobbied the FCC against regulating business data service rates offered by new entrants. Comcast officials believe "the marketplace is increasingly competitive, and that the strong evidence of continuing investment by new entrants, expanding output, and declining prices militates heavily against the imposition of wide-scale rate regulation," said a filing posted Thursday in docket 16-143 summarizing meetings with FCC commissioner aides, General Counsel Howard Symons, Wireline Bureau Chief Matt DelNero and other staffers. "In light of the Commission’s goal of promoting facilities-based competitive entry, it would be especially counterproductive to subject new entrants in the BDS marketplace to rate regulation. We noted that even parties like Level 3 and Public Knowledge -- both of which favor a significant expansion of rate regulation for incumbents -- recognize that such measures should apply only to providers with market power, and that Verizon and INCOMPAS recently appear to have acknowledged that competitive providers should be exempt (at least for some period of time) from rate regulation." Cox Communications also urged FCC officials not to impose rate regulation on new entrants. AT&T, CenturyLink and Windstream made additional filings in the docket on recent lobbying visits.