AT&T objected to FCC Chairman Tom Wheeler's proposed special access overhaul, suggesting it would increase regulation and decrease broadband investment and deployment. AT&T's top lobbyist said further investment in broadband facilities for 5G and in rural areas is needed. "But imposing regulation on special access prices and contract terms is not going to produce it," Jim Cicconi, senior executive vice-present-external and legislative affairs, said in a statement Tuesday responding to Wheeler's remarks to the Incompas Policy Summit Monday (see 1604110065). "The entire notion that more layers of FCC regulation will yield more broadband investment is absurd on its face, and proves that this FCC remains ‘an economics-free zone.’ The Commission’s proposals will instead lead to far less investment in broadband infrastructure -- especially in rural areas -- the very opposite of where we should be going as a nation." The FCC didn't comment Tuesday.
FCC special access regulation is needed to ensure competitors can lease access to incumbent telco facilities on reasonable wholesale terms, Windstream CEO Tony Thomas said at the Incompas Show Monday. About 77 percent of business buildings have just one facilities-based provider, 20 percent have two, and 2 percent have three or more, he said in Oxon Hill, Maryland: "That is the state of competition and it's not going to change overnight" due to the economics. Windstream is investing heavily to deploy fiber and upgrade its networks, but it's a "drop in the bucket," given the challenge of serving business customers with multilocation offices across the country, he said. Incumbent telcos said competitive fiber runs close to the vast majority of buildings and could be connected to them, and Thomas said long-haul connections are "pretty easy," but the "last half-mile" is "really hard and really expensive on both ends" of communications transmissions. Installing fiber underground in major cities such as Washington or Los Angeles is costly and difficult, particularly without existing rights of way, he said: "That's why we need a robust wholesale market." Thomas said the Ethernet market, which has been deregulated by FCC forbearance decisions, is "fundamentally flawed" with "staggering" problems, such as higher wholesale prices than retail prices and frequent "special construction charges" that constitute "back-door price increases meant to impede competition." Without more reasonable wholesale prices and related terms and conditions, business customers will often be left with just one provider, he said.
FCC special access regulation is needed to ensure competitors can lease access to incumbent telco facilities on reasonable wholesale terms, Windstream CEO Tony Thomas said at the Incompas Show Monday. About 77 percent of business buildings have just one facilities-based provider, 20 percent have two, and 2 percent have three or more, he said in Oxon Hill, Maryland: "That is the state of competition and it's not going to change overnight" due to the economics. Windstream is investing heavily to deploy fiber and upgrade its networks, but it's a "drop in the bucket," given the challenge of serving business customers with multilocation offices across the country, he said. Incumbent telcos said competitive fiber runs close to the vast majority of buildings and could be connected to them, and Thomas said long-haul connections are "pretty easy," but the "last half-mile" is "really hard and really expensive on both ends" of communications transmissions. Installing fiber underground in major cities such as Washington or Los Angeles is costly and difficult, particularly without existing rights of way, he said: "That's why we need a robust wholesale market." Thomas said the Ethernet market, which has been deregulated by FCC forbearance decisions, is "fundamentally flawed" with "staggering" problems, such as higher wholesale prices than retail prices and frequent "special construction charges" that constitute "back-door price increases meant to impede competition." Without more reasonable wholesale prices and related terms and conditions, business customers will often be left with just one provider, he said.
OXON HILL, Maryland -- FCC Chairman Tom Wheeler called for making a “fresh start” in the business data service market (his new name for special access), starting on April 28 with a Further NPRM and tariff order and moving quickly to a conclusion (see 1604080055) later this year. “Now is the time for action. I assure you that I will treat this issue with the urgency it deserves,” he said at the Incompas Show Monday, drawing applause with the first of several applause lines (prepared remarks here). He said he is counting on Incompas members and others to have the same sense of urgency. Wheeler also defended the FCC's proposal for set-top box competition -- while expressing an openness to modifications -- and its net neutrality rules and oversight.
The FCC would be “crazy” to subject cable operators to special access regulation under rules being examined by the agency, said NCTA Executive Vice President James Assey Monday at a Practising Law Institute seminar. The American Cable Association Friday questioned (see 1604080055) FCC Chairman Tom Wheeler's proposal to replace special access regulation with a new "technology-neutral framework."
The FCC would be “crazy” to subject cable operators to special access regulation under rules being examined by the agency, said NCTA Executive Vice President James Assey Monday at a Practising Law Institute seminar. The American Cable Association Friday questioned (see 1604080055) FCC Chairman Tom Wheeler's proposal to replace special access regulation with a new "technology-neutral framework."
OXON HILL, Maryland -- FCC Chairman Tom Wheeler called for making a “fresh start” in the business data service market (his new name for special access), starting on April 28 with a Further NPRM and tariff order and moving quickly to a conclusion (see 1604080055) later this year. “Now is the time for action. I assure you that I will treat this issue with the urgency it deserves,” he said at the Incompas Show Monday, drawing applause with the first of several applause lines (prepared remarks here). He said he is counting on Incompas members and others to have the same sense of urgency. Wheeler also defended the FCC's proposal for set-top box competition -- while expressing an openness to modifications -- and its net neutrality rules and oversight.
ILEC competitors and Verizon praised, and a cable group questioned, FCC Chairman Tom Wheeler's proposal to replace special access regulation with a new "technology-neutral framework" (see 1604080011). The Broadband Coalition, BT, the Competitive Carriers Association, the Computer & Communications Industry Association, Incompas, Sprint and Verizon issued statements applauding Wheeler's proposal. Other major incumbent telcos and commissioners didn't comment Friday. Wheeler circulated a draft Further NPRM and tariff investigation order Thursday for consideration at the April 28 commission meeting, as expected (see 1604060052). He said he intended to adopt a final order in 2016.
ILEC competitors and Verizon praised, and a cable group questioned, FCC Chairman Tom Wheeler's proposal to replace special access regulation with a new "technology-neutral framework" (see 1604080011). The Broadband Coalition, BT, the Competitive Carriers Association, the Computer & Communications Industry Association, Incompas, Sprint and Verizon issued statements applauding Wheeler's proposal. Other major incumbent telcos and commissioners didn't comment Friday. Wheeler circulated a draft Further NPRM and tariff investigation order Thursday for consideration at the April 28 commission meeting, as expected (see 1604060052). He said he intended to adopt a final order in 2016.
With FCC action apparently looming, Incompas and Verizon jointly proposed principles for a new regulatory framework for all dedicated business services, including ethernet. "We agree that we need a new technology-neutral model -- one that is legally sustainable, that recognizes the changes in the marketplace over the last ten years, that is flexible enough to accommodate new technology and new competitive circumstances going forward, and that will encourage the transition from legacy services to IP and more advanced communication services," said Verizon Senior Vice President Kathleen Grillo and Incompas CEO Chip Pickering in a statement Thursday that accompanied a letter to the FCC filed in docket 05-25. "While we don’t agree on everything, and there is more work to be done, these principles are an important first step towards bringing an end to this proceeding and reflect a balanced approach that incorporates the concerns of both sides of this debate."