The FCC asked a court to hold off on reviewing the agency's new process for designating Lifeline broadband providers, which is being challenged by NARUC and various states (see 1701310007). "Holding these cases in abeyance will allow the newly constituted Commission an opportunity to determine how it plans to proceed with respect to these cases," the FCC told the U.S. Court of Appeals for the D.C. Circuit in a filing Friday (in Pacer) in NARUC v. FCC, No. 16-1170. "The United States does not oppose this motion. We are also authorized to state that petitioners and their supporting intervenor do not oppose a limited term abeyance of 90 days." The commission also asked the D.C. Circuit to hold in abeyance its review of challenges to FCC business data service tariff investigation orders for similar reasons. "Undersigned counsel is authorized to represent that Petitioner AT&T and Intervenor CenturyLink consent to the motion, Respondent the United States does not oppose the motion, and Intervenors Level 3 Communications, Sprint Corporation, INCOMPAS, and the Ad Hoc Telecommunications Users Committee take no position on the motion," said an FCC filing (in Pacer) Friday in AT&T v. FCC, No. 16-1145.

The FCC asked a court to hold off on reviewing the agency's new process for designating Lifeline broadband providers, which is being challenged by NARUC and various states (see 1701310007). "Holding these cases in abeyance will allow the newly constituted Commission an opportunity to determine how it plans to proceed with respect to these cases," the FCC told the U.S. Court of Appeals for the D.C. Circuit in a filing Friday (in Pacer) in NARUC v. FCC, No. 16-1170. "The United States does not oppose this motion. We are also authorized to state that petitioners and their supporting intervenor do not oppose a limited term abeyance of 90 days." The commission also asked the D.C. Circuit to hold in abeyance its review of challenges to FCC business data service tariff investigation orders for similar reasons. "Undersigned counsel is authorized to represent that Petitioner AT&T and Intervenor CenturyLink consent to the motion, Respondent the United States does not oppose the motion, and Intervenors Level 3 Communications, Sprint Corporation, INCOMPAS, and the Ad Hoc Telecommunications Users Committee take no position on the motion," said an FCC filing (in Pacer) Friday in AT&T v. FCC, No. 16-1145.

FCC Chairman Ajit Pai said a new broadband deployment advisory committee (BDAC) would seek ways to spur the rollout of high-speed internet access networks and close the digital divide. He said the BDAC would be charged with identifying regulatory barriers to broadband infrastructure investment, and recommending actions to remove or reduce them. The panel also would draft a model code for localities to follow to encourage deployment, he said, announcing its formation in a statement at the commissioners' Tuesday meeting, followed by a news release and a public notice (documents here).

FCC Chairman Ajit Pai said a new broadband deployment advisory committee (BDAC) would seek ways to spur the rollout of high-speed internet access networks and close the digital divide. He said the BDAC would be charged with identifying regulatory barriers to broadband infrastructure investment, and recommending actions to remove or reduce them. The panel also would draft a model code for localities to follow to encourage deployment, he said, announcing its formation in a statement at the commissioners' Tuesday meeting, followed by a news release and a public notice (documents here).

Incompas lamented the FCC's inability to update business data service regulation, as it responded to news that Chairman Ajit Pai had pulled a draft BDS order circulated by previous Chairman Tom Wheeler (see 1701280001). “Failure to fix the broken business broadband marketplace has saddled America with consolidation, not competition, and poses a serious threat to infrastructure goals necessary to putting America first in the race for faster, more affordable networks of the future," CEO Chip Pickering said in a statement Monday. “Without real broadband choice, business customers -- including hotels, schools, hospitals and libraries -- will remain trapped by monopoly rents. We must stop forcing businesses to pay more for slower speeds, and start encouraging competition that will unleash billions in new private network investment and create new jobs. ... We hope the FCC will re-engage and not let business broadband competition and the 5G future slip away.” Other stakeholders we queried declined to comment.

Incompas lamented the FCC's inability to update business data service regulation, as it responded to news that Chairman Ajit Pai had pulled a draft BDS order circulated by previous Chairman Tom Wheeler (see 1701280001). “Failure to fix the broken business broadband marketplace has saddled America with consolidation, not competition, and poses a serious threat to infrastructure goals necessary to putting America first in the race for faster, more affordable networks of the future," CEO Chip Pickering said in a statement Monday. “Without real broadband choice, business customers -- including hotels, schools, hospitals and libraries -- will remain trapped by monopoly rents. We must stop forcing businesses to pay more for slower speeds, and start encouraging competition that will unleash billions in new private network investment and create new jobs. ... We hope the FCC will re-engage and not let business broadband competition and the 5G future slip away.” Other stakeholders we queried declined to comment.

Lack of strong opposition to CenturyLink's planned buy of Level 3 is "encouraging" for the deal's prospects, Cowen analyst Paul Gallant wrote investors Wednesday. He noted Incompas, which counts Level 3 as a member, "raised several concerns but also seemed open to merger approval with meaningful conditions" (see 1701240037). "We view these developments as positive for deal approval," he wrote. His key takeaways were: there are fewer opponents to CenturyLink/Level 3 than to last year's Verizon/XO, which was approved; additional parties may still file; business data service (BDS) "is the key issue"; and possible pricing and structural remedies may help close the deal. "We believe the DOJ's and FCC's main focus will be on the office buildings where CenturyLink-Level 3 would be 2-to-1 merger. CenturyLink says there are a total of 100 such buildings," he wrote. Although Incompas says that understates the competitive overlap, Gallant doesn't view BDS overlap as a deal-killer: "DOJ and FCC have approved past ILEC-CLEC mergers (CenturyLink-Qwest, Verizon-MCI, SBC-AT&T) in which the remedy for lost BDS competition was either price caps for BDS service or divestiture of facilities in discrete buildings. Either way, we believe the deal will be approved because: A) The deal appears to have at least some pro-competitive effects (e.g. CenturyLink-Level 3 as a stronger competitor to the larger AT&T and Verizon for multi-location customers); and B) Conditions like price caps and divestitures are well-established remedies in comparable mergers."

Lack of strong opposition to CenturyLink's planned buy of Level 3 is "encouraging" for the deal's prospects, Cowen analyst Paul Gallant wrote investors Wednesday. He noted Incompas, which counts Level 3 as a member, "raised several concerns but also seemed open to merger approval with meaningful conditions" (see 1701240037). "We view these developments as positive for deal approval," he wrote. His key takeaways were: there are fewer opponents to CenturyLink/Level 3 than to last year's Verizon/XO, which was approved; additional parties may still file; business data service (BDS) "is the key issue"; and possible pricing and structural remedies may help close the deal. "We believe the DOJ's and FCC's main focus will be on the office buildings where CenturyLink-Level 3 would be 2-to-1 merger. CenturyLink says there are a total of 100 such buildings," he wrote. Although Incompas says that understates the competitive overlap, Gallant doesn't view BDS overlap as a deal-killer: "DOJ and FCC have approved past ILEC-CLEC mergers (CenturyLink-Qwest, Verizon-MCI, SBC-AT&T) in which the remedy for lost BDS competition was either price caps for BDS service or divestiture of facilities in discrete buildings. Either way, we believe the deal will be approved because: A) The deal appears to have at least some pro-competitive effects (e.g. CenturyLink-Level 3 as a stronger competitor to the larger AT&T and Verizon for multi-location customers); and B) Conditions like price caps and divestitures are well-established remedies in comparable mergers."

Incompas said CenturyLink's planned buy of Level 3 could undermine competition and lead to higher prices and less fiber deployment to businesses. "Level 3 is a shining example of how competition and interconnection policy bring more innovation and better customers service to market," said Karen Reidy, vice president-regulatory affairs, in a release Tuesday noting Incompas filed comments in the FCC's review proceeding. "While we understand why an incumbent like CenturyLink would desire to acquire such an innovative network, the significant reduction in competitive choice at building locations across CenturyLink’s footprint threatens to saddle business customers with less choice and higher prices." Level 3 is an Incompas member. In its FCC comments, Incompas said eliminating a last-mile facilities-based competitor would "enable the combined company to more easily execute price squeezes to push other retail enterprise business solution providers out of the market," including for multi-location customers partially in CenturyLink's incumbent telco region. "Applicants attempt to gloss over these issues by understating buildings where they have overlaps, while overstating alternative facilities-based options for business data services at these buildings," said the filing in docket 16-403. It said the takeover "may dampen CenturyLink's plans for fiber deployments to buildings lit by Level 3," and applicants made inadequate showings on dark fiber for long-haul transport and on remaining transport providers. "Before approving this transaction, the Commission must ensure that the competitive force Level 3 has provided is not lost," Incompas said. The National Congress of American Indians asked the agency to use the review to address the lack of affordable broadband on tribal lands. "Many Native Americans reside in CenturyLink’s 14-state service territory which is home to the largest land-based, federally recognized tribal lands in the country. This merger risks lessening the incentive CenturyLink has to invest in their networks that serve Tribal lands ... as the merged entity shifts its business model to one focused on enterprise business services," said NCAI's comments. CenturyLink emailed in response: “Our nation’s telecommunications and IT infrastructure must continue to evolve quickly to meet the ever-increasing demands of government, business and consumers. Because we must meet those needs and strengthen America’s telecommunications infrastructure for the future, it is clear that this transaction is in the public interest.” Level 3 didn't comment.

Incompas said CenturyLink's planned buy of Level 3 could undermine competition and lead to higher prices and less fiber deployment to businesses. "Level 3 is a shining example of how competition and interconnection policy bring more innovation and better customers service to market," said Karen Reidy, vice president-regulatory affairs, in a release Tuesday noting Incompas filed comments in the FCC's review proceeding. "While we understand why an incumbent like CenturyLink would desire to acquire such an innovative network, the significant reduction in competitive choice at building locations across CenturyLink’s footprint threatens to saddle business customers with less choice and higher prices." Level 3 is an Incompas member. In its FCC comments, Incompas said eliminating a last-mile facilities-based competitor would "enable the combined company to more easily execute price squeezes to push other retail enterprise business solution providers out of the market," including for multi-location customers partially in CenturyLink's incumbent telco region. "Applicants attempt to gloss over these issues by understating buildings where they have overlaps, while overstating alternative facilities-based options for business data services at these buildings," said the filing in docket 16-403. It said the takeover "may dampen CenturyLink's plans for fiber deployments to buildings lit by Level 3," and applicants made inadequate showings on dark fiber for long-haul transport and on remaining transport providers. "Before approving this transaction, the Commission must ensure that the competitive force Level 3 has provided is not lost," Incompas said. The National Congress of American Indians asked the agency to use the review to address the lack of affordable broadband on tribal lands. "Many Native Americans reside in CenturyLink’s 14-state service territory which is home to the largest land-based, federally recognized tribal lands in the country. This merger risks lessening the incentive CenturyLink has to invest in their networks that serve Tribal lands ... as the merged entity shifts its business model to one focused on enterprise business services," said NCAI's comments. CenturyLink emailed in response: “Our nation’s telecommunications and IT infrastructure must continue to evolve quickly to meet the ever-increasing demands of government, business and consumers. Because we must meet those needs and strengthen America’s telecommunications infrastructure for the future, it is clear that this transaction is in the public interest.” Level 3 didn't comment.