The FCC could act in late September to revise its special access framework for business data services, said Incompas CEO Chip Pickering Monday. On a Competify call highlighting BDS arguments ahead of reply comments due Tuesday, Pickering and others argued for more FCC regulation of the BDS market, which they said is still dominated by incumbent telcos overcharging competitors and business customers. Meanwhile, CenturyLink and Frontier Communications urged the FCC not to impose regulation they said would harm BDS competition and investment. NCTA said it would file a reply showing there's no market failure "justifying massive regulatory intervention."

The FCC could act in late September to revise its special access framework for business data services, said Incompas CEO Chip Pickering Monday. On a Competify call highlighting BDS arguments ahead of reply comments due Tuesday, Pickering and others argued for more FCC regulation of the BDS market, which they said is still dominated by incumbent telcos overcharging competitors and business customers. Meanwhile, CenturyLink and Frontier Communications urged the FCC not to impose regulation they said would harm BDS competition and investment. NCTA said it would file a reply showing there's no market failure "justifying massive regulatory intervention."

Incompas and Verizon pushed business data service (BDS) regulation proposals they had made to the FCC. In a meeting with commission officials, "We focused on the need for the three-tiered approach to the competition test and the need for a one-time adjustment to TDM [time-division multiplexing] rates in areas served by price cap ILECs to account for the freeze in rates under the CALLS [Coalition for Affordable Local and Long Distance Service] Order" of 2000, said a joint filing Friday in docket 16-143 on a meeting with FCC General Counsel Howard Symons and other staffers. Incompas and Verizon in June proposed creating three tiers of BDS offerings based on their data speeds, with the lowest tier (below no lower than 50 Mbps) deemed noncompetitive and subject to regulation, the highest tier (above 1 Gbps) deemed competitive and not subject to regulation, and the middle tier subject to commission review by census blocks (see 1606270058). "We also discussed the need for an Ethernet benchmark in relevant markets that are insufficiently competitive, which would involve price regulation on a technology-neutral basis," said the Friday filing. "The FCC would apply the benchmark to constrain prices and ensure that providers could not abuse their market positions by imposing rates, terms or conditions that are unjust or unreasonable. The benchmark would be adjusted each year to ensure that rates are reduced over time." Separately, Free State Foundation President Randolph May said BDS regulation would deter network investment that he said already had been undermined by the net neutrality and broadband reclassification order. "The reason is simple -- and widely-acknowledged by regulatory economists: Rate regulation mandating that incumbent telephone company providers give competitors access to their facilities at below-market rates discourages investment in facilities by both incumbent providers and new entrants," he said in a Friday blog post. "This depressive investment effect is the likely result of any Commission action in the BDS proceeding that forces the telephone companies to reduce the rates for network inputs sought by competitors." He cited recent "dismal figures" for U.S. business investment, a report by economist Hal Singer on broadband investment, and an opinion by Supreme Court Justice Stephen Breyer in a 1999 AT&T v. Iowa Utilities Board ruling as supportive of his broader arguments.

Incompas and Verizon pushed business data service (BDS) regulation proposals they had made to the FCC. In a meeting with commission officials, "We focused on the need for the three-tiered approach to the competition test and the need for a one-time adjustment to TDM [time-division multiplexing] rates in areas served by price cap ILECs to account for the freeze in rates under the CALLS [Coalition for Affordable Local and Long Distance Service] Order" of 2000, said a joint filing Friday in docket 16-143 on a meeting with FCC General Counsel Howard Symons and other staffers. Incompas and Verizon in June proposed creating three tiers of BDS offerings based on their data speeds, with the lowest tier (below no lower than 50 Mbps) deemed noncompetitive and subject to regulation, the highest tier (above 1 Gbps) deemed competitive and not subject to regulation, and the middle tier subject to commission review by census blocks (see 1606270058). "We also discussed the need for an Ethernet benchmark in relevant markets that are insufficiently competitive, which would involve price regulation on a technology-neutral basis," said the Friday filing. "The FCC would apply the benchmark to constrain prices and ensure that providers could not abuse their market positions by imposing rates, terms or conditions that are unjust or unreasonable. The benchmark would be adjusted each year to ensure that rates are reduced over time." Separately, Free State Foundation President Randolph May said BDS regulation would deter network investment that he said already had been undermined by the net neutrality and broadband reclassification order. "The reason is simple -- and widely-acknowledged by regulatory economists: Rate regulation mandating that incumbent telephone company providers give competitors access to their facilities at below-market rates discourages investment in facilities by both incumbent providers and new entrants," he said in a Friday blog post. "This depressive investment effect is the likely result of any Commission action in the BDS proceeding that forces the telephone companies to reduce the rates for network inputs sought by competitors." He cited recent "dismal figures" for U.S. business investment, a report by economist Hal Singer on broadband investment, and an opinion by Supreme Court Justice Stephen Breyer in a 1999 AT&T v. Iowa Utilities Board ruling as supportive of his broader arguments.

CTIA, Incompas, NCTA and USTelecom backed a March 2015 petition for reconsideration asking the FCC to vacate a policy statement on the forfeiture methodology for violations of rules governing payment to certain payment programs. "Because the Policy Statement is written in terms that bind the agency in applicable monetary forfeiture proceedings, the Administrative Procedure Act required notice and comment prior to issuance of the Policy Statement," said a filing Friday by a CTIA counsel on a meeting with Enforcement Bureau staffers. It noted there was no docket because the commission didn't put the petition out for comment. The groups had said in 2015 the policy statement created “draconian” treble damages for amounts owed to USF and other funds (see 1503310052).

Pay-TV officials don't expect the FCC eventual final set-top box order to be much influenced by the letter from the Copyright Office released last week (see 1608040062). They expect the FCC to offer some compromise, drawing from multiple proposals, but it likely will include aspects of the content “unbundling” that were criticized in the CO letter, the pay-TV officials said. Proponents of the FCC original plan also expect a compromise solution, they told us Friday. Members of the Consumer Video Choice Coalition said the eventual order must allow for third-party boxes to have their own channel guides for navigating multichannel video programming distributors content, which is one of the concepts the CO said violates copyright. In a news conference Thursday, FCC Chairman Wheeler repeatedly said the eventual FCC plan would comply with copyright law.

Pay-TV officials don't expect the FCC eventual final set-top box order to be much influenced by the letter from the Copyright Office released last week (see 1608040062). They expect the FCC to offer some compromise, drawing from multiple proposals, but it likely will include aspects of the content “unbundling” that were criticized in the CO letter, the pay-TV officials said. Proponents of the FCC original plan also expect a compromise solution, they told us Friday. Members of the Consumer Video Choice Coalition said the eventual order must allow for third-party boxes to have their own channel guides for navigating multichannel video programming distributors content, which is one of the concepts the CO said violates copyright. In a news conference Thursday, FCC Chairman Wheeler repeatedly said the eventual FCC plan would comply with copyright law.

The Phoenix Center urged the FCC to disregard a "flawed" WIK-Consult report on business data services as the commission considers BDS regulation. Incompas had submitted the report in a docket 16-143 filing and said it showed BDS price reductions would have "spill-over effects that multiply the benefits" and promote a "virtuous cycle" (see 1607280060). But the report contains various errors, including "a focus on irrelevant factors, inaccurate computations, self-contradictory claims, and improper benchmarks," said a Phoenix Center release highlighting a longer study of the report. "The BDS proceeding is a dumping ground for inexpert economic analysis, including the WIK-Consult Report," said Phoenix Center Chief Economist and study author George Ford in the release. "Such dross is a direct consequence of the FCC's demonstrable disregard for serious economic analysis." Incompas emailed a response from CEO Chip Pickering: "The Phoenix Center will do and say anything to protect pro monopoly policy. The Phoenix Center believes competition is a dirty word, but fortunately we have two decades of innovation and investment success stories to disprove and debunk their ongoing attempts to raise monopoly policy from the ashes of the past." Incompas emailed a response from CEO Chip Pickering: "The Phoenix Center will do and say anything to protect pro monopoly policy. The Phoenix Center believes competition is a dirty word, but fortunately we have two decades of innovation and investment success stories to disprove and debunk their ongoing attempts to raise monopoly policy from the ashes of the past."

The Phoenix Center urged the FCC to disregard a "flawed" WIK-Consult report on business data services as the commission considers BDS regulation. Incompas had submitted the report in a docket 16-143 filing and said it showed BDS price reductions would have "spill-over effects that multiply the benefits" and promote a "virtuous cycle" (see 1607280060). But the report contains various errors, including "a focus on irrelevant factors, inaccurate computations, self-contradictory claims, and improper benchmarks," said a Phoenix Center release highlighting a longer study of the report. "The BDS proceeding is a dumping ground for inexpert economic analysis, including the WIK-Consult Report," said Phoenix Center Chief Economist and study author George Ford in the release. "Such dross is a direct consequence of the FCC's demonstrable disregard for serious economic analysis." Incompas emailed a response from CEO Chip Pickering: "The Phoenix Center will do and say anything to protect pro monopoly policy. The Phoenix Center believes competition is a dirty word, but fortunately we have two decades of innovation and investment success stories to disprove and debunk their ongoing attempts to raise monopoly policy from the ashes of the past." Incompas emailed a response from CEO Chip Pickering: "The Phoenix Center will do and say anything to protect pro monopoly policy. The Phoenix Center believes competition is a dirty word, but fortunately we have two decades of innovation and investment success stories to disprove and debunk their ongoing attempts to raise monopoly policy from the ashes of the past."

A top lobbyist for Incompas is shifting some aspects of his role for the association. Alan Hill, who was Incompas' senior vice president-government relations and strategic business development, will continue his legislative activities for Incompas under the banner of the J.A. Hill Group firm, which began lobbying on behalf of Incompas and BT Americas effective July 1. Those disclosure forms were posted earlier this week (see 1608010026). Hill, who has been with Incompas since 2011 and was previously legislative director for ex-Rep. Cliff Stearns, R-Fla., told us the effect should be seamless in terms of lobbying, and he began considering the shift after his wife, Joy Ditto, became president of the Utilities Telecom Council in April. His lobbying for Incompas will focus on broadband data services, privacy, video reform and general competition issues, the registration form said. He registered a website for the firm May 5 but told us it’s still not up and running yet. Hill “is now representing INCOMPAS as an independent consultant,” a group spokesman told us. “He remains the main point of contact for legislative matters for INCOMPAS.” Incompas removed Hill from its staffers listing on its website this week.