More critics of a draft business data service order are pressing the FCC to delay a vote planned for the April 20 meeting of commissioners, so far to no effect. The U.S. Small Business Administration and others said more time is needed to address deregulatory BDS proposals in the draft they say would harm business market competition and customers. If nothing else, the agency should create a three-year transition for implementing a new framework, some said. Some are skeptical there will be a pause.

Incompas said business data service competitors will need at least a three-year transition if the FCC changes the BDS regulatory framework as proposed in a draft order tentatively set for an April 20 vote (see 1703300052). The Computer & Communications Industry Association called for a three-year delay in BDS rate hikes. "Carriers need time to adjust their business models to account for the loss of crucial wholesale last-mile inputs used to serve their customers and to build to the extent it is economically feasible," said an Incompas filing posted Wednesday in docket 05-25 on a meeting with an aide to Commissioner Mike O'Rielly. The record doesn't support the draft's conclusions, particularly "the deficiencies in the competitive market test for DS1 and DS3 services and the blanket finding of competition for transport and Ethernet services," the filing said. "It is extraordinary for an agency to find a market competitive based on a duopoly let alone the mere potential for a duopoly, as is the case here." Incompas called the potential for competition "remote" and said "cable companies' own statements in the record contradict the idea" that they "will be imminent game changers in the market." It cited the importance of tech transitions protections, some of which would be eliminated by the draft BDS order and targeted for elimination by a draft FCC NPRM on wireline infrastructure also eyed for an April 20 vote (see 1704060046). A CCIA filing backed "a three-year delay in the implementation of BDS rate increases" and said the FCC should revise its competitive market test "to adequately consider the real offerings of providers." Granite Telecommunications voiced concern about draft BDS changes to a tech transition interim rule that requires ILECs to provide competitors a reasonable substitute when seeking to discontinue a "TDM-based commercial wholesale platform voice service" used as a wholesale input. The BDS draft "would abruptly end -- without any transition period -- this regulatory backstop without providing any evidence to support the conclusion that doing so would adequately preserve competition," said a Granite filing. "In the interest of compromise, Granite proposes that the Commission maintain the rule for a multi-year period (e.g., until December 31, 2019)." Verizon suggested the FCC allow "companies to adjust to detariffing while preserving existing contracts." Some "contract tariffs refer to or incorporate tariffed terms for special-access services. Some of those contracts do not contemplate detariffing," said a Verizon filing on a meeting with an aide to Chairman Ajit Pai.

Incompas said business data service competitors will need at least a three-year transition if the FCC changes the BDS regulatory framework as proposed in a draft order tentatively set for an April 20 vote (see 1703300052). The Computer & Communications Industry Association called for a three-year delay in BDS rate hikes. "Carriers need time to adjust their business models to account for the loss of crucial wholesale last-mile inputs used to serve their customers and to build to the extent it is economically feasible," said an Incompas filing posted Wednesday in docket 05-25 on a meeting with an aide to Commissioner Mike O'Rielly. The record doesn't support the draft's conclusions, particularly "the deficiencies in the competitive market test for DS1 and DS3 services and the blanket finding of competition for transport and Ethernet services," the filing said. "It is extraordinary for an agency to find a market competitive based on a duopoly let alone the mere potential for a duopoly, as is the case here." Incompas called the potential for competition "remote" and said "cable companies' own statements in the record contradict the idea" that they "will be imminent game changers in the market." It cited the importance of tech transitions protections, some of which would be eliminated by the draft BDS order and targeted for elimination by a draft FCC NPRM on wireline infrastructure also eyed for an April 20 vote (see 1704060046). A CCIA filing backed "a three-year delay in the implementation of BDS rate increases" and said the FCC should revise its competitive market test "to adequately consider the real offerings of providers." Granite Telecommunications voiced concern about draft BDS changes to a tech transition interim rule that requires ILECs to provide competitors a reasonable substitute when seeking to discontinue a "TDM-based commercial wholesale platform voice service" used as a wholesale input. The BDS draft "would abruptly end -- without any transition period -- this regulatory backstop without providing any evidence to support the conclusion that doing so would adequately preserve competition," said a Granite filing. "In the interest of compromise, Granite proposes that the Commission maintain the rule for a multi-year period (e.g., until December 31, 2019)." Verizon suggested the FCC allow "companies to adjust to detariffing while preserving existing contracts." Some "contract tariffs refer to or incorporate tariffed terms for special-access services. Some of those contracts do not contemplate detariffing," said a Verizon filing on a meeting with an aide to Chairman Ajit Pai.

Some doubt Chairman Ajit Pai will delay the April 20 commissioner vote on business data service rules despite Incompas asking the FCC to put it off until summer so a list of counties deemed competitive can be publicly reviewed and the commission can do a cost-benefit analysis. The request drew opposition from incumbent telcos' main trade group. A Pai spokesman didn't comment Tuesday but had dismissed a similar call from Commissioner Mignon Clyburn Monday (see 1704100068). Meanwhile, stakeholders stepped up lobbying efforts ahead of the scheduled imposition of Sunshine Act restrictions at Thursday's close.

Some doubt Chairman Ajit Pai will delay the April 20 commissioner vote on business data service rules despite Incompas asking the FCC to put it off until summer so a list of counties deemed competitive can be publicly reviewed and the commission can do a cost-benefit analysis. The request drew opposition from incumbent telcos' main trade group. A Pai spokesman didn't comment Tuesday but had dismissed a similar call from Commissioner Mignon Clyburn Monday (see 1704100068). Meanwhile, stakeholders stepped up lobbying efforts ahead of the scheduled imposition of Sunshine Act restrictions at Thursday's close.

Commissioner Mignon Clyburn said the FCC should release a list of counties that would be deemed competitive in the business data services market and subject to price deregulation under a draft order tentatively slated for an April 20 vote. "The FCC should release this list immediately," she said in a statement. "This is the only way the public can truly evaluate the practical effects of the FCC’s proposed actions. If for some reason, that is unknown to me at this time, we cannot release this list expeditiously, we should delay our vote on the proposed Order until the public can see it ‘well in advance’ of a FCC vote." Incompas CEO Chip Pickering on April 4 urged release of the list of the competitive counties and said the draft order's competitive market test would cause 92 percent all locations using BDS to "see an end to protections against monopoly or duopoly pricing." The FCC's proposed action "will have serious ramifications" for the $45 billion BDS market, Clyburn said. "An integral piece of this proposed Order is a test to determine which counties will be deemed competitive, and thus deregulated. Chairman Pai has been a champion of transparency. It is puzzling, then, why he will release the text of the item, but omit a key appendix listing which counties are deemed competitive, until the Order is released. We have the information. It will become public when the Order is released. So why is it that the FCC has taken the position that it will vote on an Order before the public gets to see exactly what the Order does? Just what are we trying to hide?" A Pai spokesman dismissed Clyburn's call. Her "entire statement is based on a false premise; there is no such ‘appendix’ to the item," he emailed. "Moreover, it has been explained to Commissioner Clyburn’s office that publicly releasing the internal work product she is discussing at this point, which is not part of the Order, would violate the Trade Secrets Act. Finally, it is odd that Commissioner Clyburn had no problem voting on meeting items for over four years when the text of those items had not been made public. But now, she is calling for delay because information that is not part of a meeting item has not been made public.”

Commissioner Mignon Clyburn said the FCC should release a list of counties that would be deemed competitive in the business data services market and subject to price deregulation under a draft order tentatively slated for an April 20 vote. "The FCC should release this list immediately," she said in a statement. "This is the only way the public can truly evaluate the practical effects of the FCC’s proposed actions. If for some reason, that is unknown to me at this time, we cannot release this list expeditiously, we should delay our vote on the proposed Order until the public can see it ‘well in advance’ of a FCC vote." Incompas CEO Chip Pickering on April 4 urged release of the list of the competitive counties and said the draft order's competitive market test would cause 92 percent all locations using BDS to "see an end to protections against monopoly or duopoly pricing." The FCC's proposed action "will have serious ramifications" for the $45 billion BDS market, Clyburn said. "An integral piece of this proposed Order is a test to determine which counties will be deemed competitive, and thus deregulated. Chairman Pai has been a champion of transparency. It is puzzling, then, why he will release the text of the item, but omit a key appendix listing which counties are deemed competitive, until the Order is released. We have the information. It will become public when the Order is released. So why is it that the FCC has taken the position that it will vote on an Order before the public gets to see exactly what the Order does? Just what are we trying to hide?" A Pai spokesman dismissed Clyburn's call. Her "entire statement is based on a false premise; there is no such ‘appendix’ to the item," he emailed. "Moreover, it has been explained to Commissioner Clyburn’s office that publicly releasing the internal work product she is discussing at this point, which is not part of the Order, would violate the Trade Secrets Act. Finally, it is odd that Commissioner Clyburn had no problem voting on meeting items for over four years when the text of those items had not been made public. But now, she is calling for delay because information that is not part of a meeting item has not been made public.”

Commissioners likely will vote 2-1 along party lines to adopt a business data service order based on the FCC draft proposed Thursday by Chairman Ajit Pai, observers said Monday and Friday. Republican Commissioner Mike O'Rielly is considered likely to be supportive, and Democratic Commissioner Mignon Clyburn is seen by most as likely to dissent from the largely deregulatory BDS draft order. Meanwhile, Incompas asked the FCC to identify the counties that would be deemed "competitive" under a BDS market test in the draft, which is among the items tentatively scheduled for a vote at commissioners' April 20 meeting (see 1703300052).

Commissioners likely will vote 2-1 along party lines to adopt a business data service order based on the FCC draft proposed Thursday by Chairman Ajit Pai, observers said Monday and Friday. Republican Commissioner Mike O'Rielly is considered likely to be supportive, and Democratic Commissioner Mignon Clyburn is seen by most as likely to dissent from the largely deregulatory BDS draft order. Meanwhile, Incompas asked the FCC to identify the counties that would be deemed "competitive" under a BDS market test in the draft, which is among the items tentatively scheduled for a vote at commissioners' April 20 meeting (see 1703300052).

The FCC would loosen business data service regulation under a draft order released Thursday and placed on the tentative agenda for the April 20 commissioners' meeting, as expected (see 1703280050 and 1703290049). The 172-page BDS draft would establish "a new framework that minimizes unnecessary government intervention and allows market forces to continue working to spur entry, innovation and competition." The order "recognizes the presence of strong competition" in the BDS market and eases regulatory burdens on the providers, said an attached fact sheet.