FCC staff rejected some AT&T business data service tariffs and will probe others, but found Verizon's BDS tariff changes are lawful and can take effect, said an agency spokesman Friday. The AT&T tariffs the Wireline Bureau rejected involve "all or nothing" and related "circuit portability" contract conditions for BDS customers seeking discounts, while the tariffs to be investigated involve shortfall penalties for not meeting volume commitments and early termination fees (ETFs) for not satisfying term commitments. CLECs and Sprint objected to the Bell tariff changes -- which responded to a previous FCC order -- as a "rate hike sneak attack" (see 1607110066). Some commission watchers thought the agency was likely to suspend and investigate the tariff filings of both companies (see 1607140003).

FCC staff rejected some AT&T business data service tariffs and will probe others, but found Verizon's BDS tariff changes are lawful and can take effect, said an agency spokesman Friday. The AT&T tariffs the Wireline Bureau rejected involve "all or nothing" and related "circuit portability" contract conditions for BDS customers seeking discounts, while the tariffs to be investigated involve shortfall penalties for not meeting volume commitments and early termination fees (ETFs) for not satisfying term commitments. CLECs and Sprint objected to the Bell tariff changes -- which responded to a previous FCC order -- as a "rate hike sneak attack" (see 1607110066). Some commission watchers thought the agency was likely to suspend and investigate the tariff filings of both companies (see 1607140003).

The FCC seems likely to block and probe AT&T and Verizon tariff proposals for business data services, commission watchers told us. The Bells proposed the BDS tariffs in response to an FCC order that found certain telco contract discount conditions unlawful because they unduly restricted choices by telecom rivals. But CLECs and Sprint filed petitions objecting to a "rate hike sneak attack" that continued to "manipulate the market using anti-competitive lock-up sales conditions," and they asked the FCC to reject the tariffs or suspend and investigate them (see 1607110066). The agency must decide by Friday whether to allow the tariffs to take effect Saturday.

The FCC seems likely to block and probe AT&T and Verizon tariff proposals for business data services, commission watchers told us. The Bells proposed the BDS tariffs in response to an FCC order that found certain telco contract discount conditions unlawful because they unduly restricted choices by telecom rivals. But CLECs and Sprint filed petitions objecting to a "rate hike sneak attack" that continued to "manipulate the market using anti-competitive lock-up sales conditions," and they asked the FCC to reject the tariffs or suspend and investigate them (see 1607110066). The agency must decide by Friday whether to allow the tariffs to take effect Saturday.

NCTA slammed a Public Knowledge official's call for Bell cooperation on regulating business data services, including cable. NCTA cited a blog post by PK Senior Vice President Harold Feld that said AT&T should negotiate with Verizon -- which has collaborated with Incompas -- and that suggested cable could dominate the BDS market if the FCC constrains only ILECs. "This theory is wrong in so many different ways, that it requires some unpacking," said NCTA Vice President Steve Morris in a blog post Wednesday called "Let Some Fresh Air Inside the FCC's Smoke-Filled Tent." He wrote, "It's jaw-droppingly hard to conceive that an advocate who has consistently complained about the 'ILEC monopoly' ... would suggest that the biggest ILEC should join the second biggest ILEC in negotiating a regulatory regime that raises obstacles to emerging competitors. If you are concerned about market power and in favor of competition, why would you ever support regulation that constrains emerging competitors -- particularly competitors investing in fiber networks that are tremendously expensive to build and that everyone agrees are vital to the future of the nation? Does Feld support FCC action to constrain the new small business services just announced by Google Fiber or is it just cable that should be limited?" Despite extensive FCC data collection, "none of that data even hints at" emerging competitors exercising market power, Morris wrote. He said it's absurd to believe that limiting ILEC rates without limiting cable rates "will somehow enable cable to dominate the market," when cable has only a 10 percent market share. Feld's "suggestion that AT&T ‘come into the tent and negotiate’ illustrates just how broken this process has become -- encouraging a ‘wheel and deal’ mentality more apt for the selling of used cars," Morris said. Feld disagreed. "NCTA wants to negotiate a new STB [set-top box] standard for their ‘get rid of the box’ alternative. How is that not also a ‘smoke filled room?’ To paraphrase Captain Renault from Casablanca: NCTA is shocked, SHOCKED to find there are ex parte meetings going on here," he emailed. "Does NCTA really need a lecture on how the ex parte process in a permit but disclose proceeding works? Verizon and Incompas will continue to talk to each other and submit their proposals through the very public process -- just like NCTA will, presumably, someday, possibly, submit some further details on what 'get rid of the box' actually means and how it would work. Then other folks -- like NCTA in the case of BDS, or PK in the case of STBs -- get to meet with the staff and respond. Look, if NCTA wants to propose getting rid of 'permit but disclose proceedings' and do this just on comments and replies with no meetings for anyone, cool. But NCTA should stop playing the offended hypocrite.”

NCTA slammed a Public Knowledge official's call for Bell cooperation on regulating business data services, including cable. NCTA cited a blog post by PK Senior Vice President Harold Feld that said AT&T should negotiate with Verizon -- which has collaborated with Incompas -- and that suggested cable could dominate the BDS market if the FCC constrains only ILECs. "This theory is wrong in so many different ways, that it requires some unpacking," said NCTA Vice President Steve Morris in a blog post Wednesday called "Let Some Fresh Air Inside the FCC's Smoke-Filled Tent." He wrote, "It's jaw-droppingly hard to conceive that an advocate who has consistently complained about the 'ILEC monopoly' ... would suggest that the biggest ILEC should join the second biggest ILEC in negotiating a regulatory regime that raises obstacles to emerging competitors. If you are concerned about market power and in favor of competition, why would you ever support regulation that constrains emerging competitors -- particularly competitors investing in fiber networks that are tremendously expensive to build and that everyone agrees are vital to the future of the nation? Does Feld support FCC action to constrain the new small business services just announced by Google Fiber or is it just cable that should be limited?" Despite extensive FCC data collection, "none of that data even hints at" emerging competitors exercising market power, Morris wrote. He said it's absurd to believe that limiting ILEC rates without limiting cable rates "will somehow enable cable to dominate the market," when cable has only a 10 percent market share. Feld's "suggestion that AT&T ‘come into the tent and negotiate’ illustrates just how broken this process has become -- encouraging a ‘wheel and deal’ mentality more apt for the selling of used cars," Morris said. Feld disagreed. "NCTA wants to negotiate a new STB [set-top box] standard for their ‘get rid of the box’ alternative. How is that not also a ‘smoke filled room?’ To paraphrase Captain Renault from Casablanca: NCTA is shocked, SHOCKED to find there are ex parte meetings going on here," he emailed. "Does NCTA really need a lecture on how the ex parte process in a permit but disclose proceeding works? Verizon and Incompas will continue to talk to each other and submit their proposals through the very public process -- just like NCTA will, presumably, someday, possibly, submit some further details on what 'get rid of the box' actually means and how it would work. Then other folks -- like NCTA in the case of BDS, or PK in the case of STBs -- get to meet with the staff and respond. Look, if NCTA wants to propose getting rid of 'permit but disclose proceedings' and do this just on comments and replies with no meetings for anyone, cool. But NCTA should stop playing the offended hypocrite.”

FCC questions about the pay-TV set-top proposal (see 1607110042), a spate of recent ex parte meetings on the subject and blog posts Tuesday from Incompas CEO Chip Pickering and from Verizon acknowledging the compromise plan are seen as indications the agency is increasingly moving in that direction, industry officials and attorneys on both sides told us Tuesday. Pickering's post offered a kind of counter-proposal to the multichannel video programming distributor plan. He said in an interview Tuesday it's a positive sign the two sides have reached the point where they are going back and forth on details of a proposed plan.

FCC questions about the pay-TV set-top proposal (see 1607110042), a spate of recent ex parte meetings on the subject and blog posts Tuesday from Incompas CEO Chip Pickering and from Verizon acknowledging the compromise plan are seen as indications the agency is increasingly moving in that direction, industry officials and attorneys on both sides told us Tuesday. Pickering's post offered a kind of counter-proposal to the multichannel video programming distributor plan. He said in an interview Tuesday it's a positive sign the two sides have reached the point where they are going back and forth on details of a proposed plan.

Rivals slammed an "anti-competitive ploy" by AT&T and Verizon to raise broadband prices on business customers as the FCC reviews its treatment of business data services (BDS). In filings, members of the Broadband Coalition, Incompas and others "sounded the alarm" on the Bells' "latest attempt to manipulate the market" through "lock-up sales conditions," said a release Monday from the coalition. Members include EarthLink, Level 3 and Windstream.

Rivals slammed an "anti-competitive ploy" by AT&T and Verizon to raise broadband prices on business customers as the FCC reviews its treatment of business data services (BDS). In filings, members of the Broadband Coalition, Incompas and others "sounded the alarm" on the Bells' "latest attempt to manipulate the market" through "lock-up sales conditions," said a release Monday from the coalition. Members include EarthLink, Level 3 and Windstream.