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.
CenturyLink said its proposed acquisition of Level 3 "poses no risk of harm to competition" in the "the market for Internet services such as transit." Level 3 doesn't serve residential subscribers and "therefore the transaction will not result in a network with control over access to more residential subscribers than CenturyLink has today," said a filing posted Wednesday in docket 16-403 on a discussion CenturyLink and Level 3 representatives had with a Wireline Bureau official last week. On geographic reach, "while Level 3 provides lit services over its entire network, Level 3 also sells dark fiber where it has availability," the filing said. The companies "expect to provide additional information in the docket to supplement these points." Earlier in the week, Incompas said CenturyLink and Level 3 failed to establish that the proposed deal serves the public interest. The companies haven't shown their combination "will increase facilities-based competition -- namely that it will build connections to buildings outside of CenturyLink’s ILEC territory on a larger scale than Level 3 would on its own -- and assure competitive use of those facilities at the same or more favorable rates, terms, and conditions than those offered by Level 3 today," said an Incompas filing posted Monday: "The loss of a nationwide competitive builder creates a significant harm to customers who otherwise would have an alternative fiber provider to the incumbent monopolist." CenturyLink and Level 3 also "glossed over public interest concerns that that transaction will actually undermine competition by eliminating choice of last-mile facilities based providers for enterprise customers in many buildings," said the group, alleging the companies failed to address other concerns about their Ethernet market analysis and competitive overlap.
CenturyLink said its proposed acquisition of Level 3 "poses no risk of harm to competition" in the "the market for Internet services such as transit." Level 3 doesn't serve residential subscribers and "therefore the transaction will not result in a network with control over access to more residential subscribers than CenturyLink has today," said a filing posted Wednesday in docket 16-403 on a discussion CenturyLink and Level 3 representatives had with a Wireline Bureau official last week. On geographic reach, "while Level 3 provides lit services over its entire network, Level 3 also sells dark fiber where it has availability," the filing said. The companies "expect to provide additional information in the docket to supplement these points." Earlier in the week, Incompas said CenturyLink and Level 3 failed to establish that the proposed deal serves the public interest. The companies haven't shown their combination "will increase facilities-based competition -- namely that it will build connections to buildings outside of CenturyLink’s ILEC territory on a larger scale than Level 3 would on its own -- and assure competitive use of those facilities at the same or more favorable rates, terms, and conditions than those offered by Level 3 today," said an Incompas filing posted Monday: "The loss of a nationwide competitive builder creates a significant harm to customers who otherwise would have an alternative fiber provider to the incumbent monopolist." CenturyLink and Level 3 also "glossed over public interest concerns that that transaction will actually undermine competition by eliminating choice of last-mile facilities based providers for enterprise customers in many buildings," said the group, alleging the companies failed to address other concerns about their Ethernet market analysis and competitive overlap.
FCC Chairman Ajit Pai is expected to propose a full agenda once more for the April commissioners' meeting. In addition to business data service (BDS) (see 1703280050) and UHF ownership limit discount votes (see 1703070055), Pai is expected to tee up items on wireless and wireline infrastructure, plus a spectrum notice of inquiry, industry officials said. Pai had a similarly busy agenda for the March meeting. Meanwhile, he gave a speech touting light-touch regulation and his process moves such as publicizing drafts of all items voted on at members' meetings.
FCC Chairman Ajit Pai is expected to propose a full agenda once more for the April commissioners' meeting. In addition to business data service (BDS) (see 1703280050) and UHF ownership limit discount votes (see 1703070055), Pai is expected to tee up items on wireless and wireline infrastructure, plus a spectrum notice of inquiry, industry officials said. Pai had a similarly busy agenda for the March meeting. Meanwhile, he gave a speech touting light-touch regulation and his process moves such as publicizing drafts of all items voted on at members' meetings.
The FCC is aiming to put a business data service item on the tentative agenda Thursday for the April 20 commissioners' meeting, industry representatives told us Tuesday. Chairman Ajit Pai appears likely to circulate a deregulatory BDS draft to commissioners this week and seek a vote next month, though uncertainty remains, some said. The commission didn't comment.
The FCC is aiming to put a business data service item on the tentative agenda Thursday for the April 20 commissioners' meeting, industry representatives told us Tuesday. Chairman Ajit Pai appears likely to circulate a deregulatory BDS draft to commissioners this week and seek a vote next month, though uncertainty remains, some said. The commission didn't comment.
Sprint urged the FCC to reject incumbent telco business data service proposals "and the dramatic price increases" they would spark, and instead adopt a BDS order "built on the consensus developed" after the commission issued an order and Further NPRM last May. Sprint submitted a detailed response at the FCC to the recent deregulatory BDS proposals of AT&T, CenturyLink and Frontier Communications (see 1703140046 and 1703210017). "There is no lawful basis for the Commission to accept these ILECs’ efforts to remove protections for the thousands of American businesses around the nation that buy dedicated broadband services," said the Sprint filing posted Thursday in docket 05-25. "At a minimum, if the Commission is considering a new proposal similar to the plans proposed by these ILECs, which would represent a fundamental course reversal, it must reveal its reasoning, conduct a new economic analysis that supports such a dramatic change, publish the details of its new proposal, and give the public an opportunity for notice and comment." Incompas emailed that it "agrees with Sprint that AT&T’s and CenturyLink/Frontier’s latest proposals for BDS will further rig the market for incumbents. The consequences of the proposals are undeniable. Small businesses, healthcare facilities, schools and libraries will end up paying more for BDS if they are adopted. In addition to raising prices and harming competition, investment in 5G infrastructure will be reduced. As the referee, the Commission must call the fouls when they see them." AT&T, CenturyLink and Frontier didn't comment.
Sprint urged the FCC to reject incumbent telco business data service proposals "and the dramatic price increases" they would spark, and instead adopt a BDS order "built on the consensus developed" after the commission issued an order and Further NPRM last May. Sprint submitted a detailed response at the FCC to the recent deregulatory BDS proposals of AT&T, CenturyLink and Frontier Communications (see 1703140046 and 1703210017). "There is no lawful basis for the Commission to accept these ILECs’ efforts to remove protections for the thousands of American businesses around the nation that buy dedicated broadband services," said the Sprint filing posted Thursday in docket 05-25. "At a minimum, if the Commission is considering a new proposal similar to the plans proposed by these ILECs, which would represent a fundamental course reversal, it must reveal its reasoning, conduct a new economic analysis that supports such a dramatic change, publish the details of its new proposal, and give the public an opportunity for notice and comment." Incompas emailed that it "agrees with Sprint that AT&T’s and CenturyLink/Frontier’s latest proposals for BDS will further rig the market for incumbents. The consequences of the proposals are undeniable. Small businesses, healthcare facilities, schools and libraries will end up paying more for BDS if they are adopted. In addition to raising prices and harming competition, investment in 5G infrastructure will be reduced. As the referee, the Commission must call the fouls when they see them." AT&T, CenturyLink and Frontier didn't comment.
CenturyLink and Frontier Communications asked the FCC for "nondominant" treatment of price-capped incumbent telcos' business data services (BDS) at all capacity levels. The proposal would free large ILECs from "stultifying tariffing requirements and ex ante regulation," creating a "level playing field" with competitors that don't face such burdens even when they have higher BDS market shares, said the two incumbent telcos in a filing posted Tuesday in docket 05-25.