Multichannel video programming distributors, programmers, tech companies and civil rights groups continued to lobby the FCC over the agency's set-top proposal until the beginning of the sunshine period Thursday evening, according to ex parte notices posted in docket 16-42 that day and Friday. Groups on both sides repeated their opposition or support for the draft item set for commissioner's coming Thursday meeting, T-Mobile announced support for the FCC plan, and a coalition of civil rights groups asked the FCC to delay the vote. Amazon proposed an alternative to the commission’s licensing plan that was raised by FCC officials in discussions with content companies, according to an ex parte filing.

Drafting FCC orders for business data services (BDS) and broadband privacy is a top priority for the Wireline Bureau, said bureau Chief Matt DelNero at an FCBA event Wednesday. DelNero said Chairman Tom Wheeler continues to urge industry rivals to achieve as much agreement as possible on the regulatory treatment of a BDS market generating at least $45 billion in annual revenue. The bureau is also busy carrying out past commission decisions, particularly regarding overhauls of various USF mechanisms, he said.

Drafting FCC orders for business data services (BDS) and broadband privacy is a top priority for the Wireline Bureau, said bureau Chief Matt DelNero at an FCBA event Wednesday. DelNero said Chairman Tom Wheeler continues to urge industry rivals to achieve as much agreement as possible on the regulatory treatment of a BDS market generating at least $45 billion in annual revenue. The bureau is also busy carrying out past commission decisions, particularly regarding overhauls of various USF mechanisms, he said.

AT&T called Incompas/Verizon business data service regulatory proposals nothing like the compromise the two parties suggest it is. Verizon sold so many wireline systems, it "is almost certainly a net purchaser of BDS whose interests are more aligned" with Incompas than with other ILECs, said an AT&T filing posted Monday in docket 16-143, calling their joint recommendations "cynical." As Incompas and Verizon reveal details of their proposals, it's becoming clear their proposals are "structured as a massively one-sided giveaway to Verizon at the expense of consumers, competition and virtually all other BDS competitors," AT&T wrote. It said Verizon had some of the highest BDS rates in the industry where it's the incumbent, "significantly higher than AT&T's, for example." But Incompas is willing to protect Verizon's high in-region rates to win the telco's support for "radical and debilitating rate reductions on all other ILECs and Ethernet providers outside of Verizon's territory," AT&T said. "That may be a win-win for Verizon and INCOMPAS, but it would be hard to design a proposal more inimical to the public interest." AT&T said "Verizon would be rewarded for having DS1 rates that far exceed those of AT&T, because those high DS1 rates translate directly into higher benchmark Ethernet rates for Verizon." Incompas and Verizon didn't comment to us. In a Monday filing, Verizon said cable provides BDS offerings the same way others do, via common carriage. Verizon also asked the FCC to allow existing BDS contracts to run their course rather than void them through "fresh look" requirements, in the filing on a call with Wireline Bureau Chief Matt DelNero. In a blog post, USTelecom said Friday the FCC should stop barring incumbents from discounting BDS prices in about one-third of the country. "Prices could be lower in those areas if the FCC simply granted more flexibility to incumbent providers to lower their prices in all areas of the country," the ILEC group said. A Macquarie Securities note to investors Monday said the impact of new FCC BDS regulation "could be greater" for Frontier Communications and CenturyLink.

AT&T called Incompas/Verizon business data service regulatory proposals nothing like the compromise the two parties suggest it is. Verizon sold so many wireline systems, it "is almost certainly a net purchaser of BDS whose interests are more aligned" with Incompas than with other ILECs, said an AT&T filing posted Monday in docket 16-143, calling their joint recommendations "cynical." As Incompas and Verizon reveal details of their proposals, it's becoming clear their proposals are "structured as a massively one-sided giveaway to Verizon at the expense of consumers, competition and virtually all other BDS competitors," AT&T wrote. It said Verizon had some of the highest BDS rates in the industry where it's the incumbent, "significantly higher than AT&T's, for example." But Incompas is willing to protect Verizon's high in-region rates to win the telco's support for "radical and debilitating rate reductions on all other ILECs and Ethernet providers outside of Verizon's territory," AT&T said. "That may be a win-win for Verizon and INCOMPAS, but it would be hard to design a proposal more inimical to the public interest." AT&T said "Verizon would be rewarded for having DS1 rates that far exceed those of AT&T, because those high DS1 rates translate directly into higher benchmark Ethernet rates for Verizon." Incompas and Verizon didn't comment to us. In a Monday filing, Verizon said cable provides BDS offerings the same way others do, via common carriage. Verizon also asked the FCC to allow existing BDS contracts to run their course rather than void them through "fresh look" requirements, in the filing on a call with Wireline Bureau Chief Matt DelNero. In a blog post, USTelecom said Friday the FCC should stop barring incumbents from discounting BDS prices in about one-third of the country. "Prices could be lower in those areas if the FCC simply granted more flexibility to incumbent providers to lower their prices in all areas of the country," the ILEC group said. A Macquarie Securities note to investors Monday said the impact of new FCC BDS regulation "could be greater" for Frontier Communications and CenturyLink.

CenturyLink accused Verizon of engaging in "doubletalk" on competition by selectively stressing the positives or negatives of the business market in different regulatory proceedings for its own advantage. CenturyLink cited a recent Verizon white paper that said Verizon's planned takeover of XO Communications wouldn't harm competition because of a wide range of fiber competitors in the business market (see 1608300036). But Verizon has pointed to the general lack of competition in making proposals with Incompas for regulation of business data services (BDS), CenturyLink said.

CenturyLink accused Verizon of engaging in "doubletalk" on competition by selectively stressing the positives or negatives of the business market in different regulatory proceedings for its own advantage. CenturyLink cited a recent Verizon white paper that said Verizon's planned takeover of XO Communications wouldn't harm competition because of a wide range of fiber competitors in the business market (see 1608300036). But Verizon has pointed to the general lack of competition in making proposals with Incompas for regulation of business data services (BDS), CenturyLink said.

NCTA proposed a business data service framework as it and others criticized rival recommendations and possible FCC regulation. The cable group said key Incompas/Verizon proposals to broadly regulate all BDS providers had been "thoroughly refuted." It said regulation should be applied only to legacy BDS rates in census tracts having a single BDS-capable facilities provider, fewer than 10 BDS customers, and no customers buying fiber-based Ethernet services. "Rates for TDM services in these noncompetitive tracts would be regulated under the existing price cap regime, and should account for higher costs," said an NCTA filing to be posted in docket 16-143. "Regulation would sunset in 2025 if at least one provider offers Ethernet services in the census tract at that time. The Commission also should adopt an expedited complaint process." Incompas emailed that its proposals with Verizon open "a race to the future, filled with lower prices, competition and investment. These are all things NCTA opposes, so it’s not surprising to see them propose a flawed framework that favors monopoly and duopoly control." Level 3 said NCTA ignored "overwhelming evidence" that BDS competition is often lacking. “NCTA would have the Commission adopt, once again, a framework for deregulation that relies on imaginary potential competition rather than actual evidence, just a few short years after the Commission finally abandoned its failed 'pricing flexibility triggers' framework, perhaps the most notable characteristic of which was its similarity to the NCTA proposal," Level 3 emailed . But NCTA and others cited seven economists who said they were troubled by proposals to "impose widespread rate regulation in all markets" that don't have at least three or four BDS providers. The commission should adopt "a competitive market test targeted squarely at combating supracompetitive rents in entrenched monopoly markets, rather than regulating markets with multiple facilities-based competitors present," said a letter to be posted from Joseph Farrell, professor emeritus at the University of California, Berkley; Michael Katz, a UC-Berkley professor; and others. The Communications Workers of America said it's "deeply concerned" the FCC is considering an Incompas/Verizon BDS framework that could cause a "20 percent (or higher) flash cut in rates," reducing provider annual revenue by $1.4 billion, as estimated by an economist. "Drastic" BDS rate cuts "would lead to reduced investment in broadband networks -- especially in rural areas -- and downward pressure on jobs and living standards," said the letter from CWA President Christopher Shelton to be posted. The Competitive Carriers Association called for "immediate BDS reform, particularly as mobile carriers work to densify their networks" to prepare for 5G. The FCC should "adopt a presumption that low-capacity BDS are not competitive and apply a competitive market test to high-capacity BDS above-50 or -100 Mbps," said a CCA filing on a meeting (see 1609140028) with Commissioner Jessica Rosenworcel and an aide. Alaska Communications discussed the "unique characteristics of the BDS market in Alaska" with commissioner aides, said another filing.

NCTA proposed a business data service framework as it and others criticized rival recommendations and possible FCC regulation. The cable group said key Incompas/Verizon proposals to broadly regulate all BDS providers had been "thoroughly refuted." It said regulation should be applied only to legacy BDS rates in census tracts having a single BDS-capable facilities provider, fewer than 10 BDS customers, and no customers buying fiber-based Ethernet services. "Rates for TDM services in these noncompetitive tracts would be regulated under the existing price cap regime, and should account for higher costs," said an NCTA filing to be posted in docket 16-143. "Regulation would sunset in 2025 if at least one provider offers Ethernet services in the census tract at that time. The Commission also should adopt an expedited complaint process." Incompas emailed that its proposals with Verizon open "a race to the future, filled with lower prices, competition and investment. These are all things NCTA opposes, so it’s not surprising to see them propose a flawed framework that favors monopoly and duopoly control." Level 3 said NCTA ignored "overwhelming evidence" that BDS competition is often lacking. “NCTA would have the Commission adopt, once again, a framework for deregulation that relies on imaginary potential competition rather than actual evidence, just a few short years after the Commission finally abandoned its failed 'pricing flexibility triggers' framework, perhaps the most notable characteristic of which was its similarity to the NCTA proposal," Level 3 emailed . But NCTA and others cited seven economists who said they were troubled by proposals to "impose widespread rate regulation in all markets" that don't have at least three or four BDS providers. The commission should adopt "a competitive market test targeted squarely at combating supracompetitive rents in entrenched monopoly markets, rather than regulating markets with multiple facilities-based competitors present," said a letter to be posted from Joseph Farrell, professor emeritus at the University of California, Berkley; Michael Katz, a UC-Berkley professor; and others. The Communications Workers of America said it's "deeply concerned" the FCC is considering an Incompas/Verizon BDS framework that could cause a "20 percent (or higher) flash cut in rates," reducing provider annual revenue by $1.4 billion, as estimated by an economist. "Drastic" BDS rate cuts "would lead to reduced investment in broadband networks -- especially in rural areas -- and downward pressure on jobs and living standards," said the letter from CWA President Christopher Shelton to be posted. The Competitive Carriers Association called for "immediate BDS reform, particularly as mobile carriers work to densify their networks" to prepare for 5G. The FCC should "adopt a presumption that low-capacity BDS are not competitive and apply a competitive market test to high-capacity BDS above-50 or -100 Mbps," said a CCA filing on a meeting (see 1609140028) with Commissioner Jessica Rosenworcel and an aide. Alaska Communications discussed the "unique characteristics of the BDS market in Alaska" with commissioner aides, said another filing.

Two cable companies objected to possible FCC regulation of their business data services. Cox Communications said direct or indirect regulation of its BDS offerings would "significantly impact" its investment decisions. Ethernet prices are falling sharply and developments such as consumer use of over-the-top BDS were pressing its business plans, said Cox filing posted Tuesday covering a meeting with senior FCC officials, including General Counsel Howard Symons, Wireline Bureau Chief Matt DelNero and Stephanie Weiner, an aide to Chairman Tom Wheeler. "Reject competitive market tests based on overly granular areas such [as] census blocks or specific locations and that required multiple competitors before finding a market competitive." When asked about a possible delay in directly price regulating new BDS entrants, Cox said such regulation should be tied to market power, with "new entrants" defined as providers starting BDS after 1996. Incompas and Verizon had suggested a three-year delay. Mediacom met separately with Symons, commissioner aides, and other staffers to oppose new regulation of competitive BDS offerings, including its "nascent" service. "Mediacom’s BDS prices have been subject to competitive pressure that has forced prices to decline markedly since 2011," said a filing, also in docket 16-143. "There is no record evidence that Mediacom’s rates are unreasonable, or that the company possesses market power. We also argued that adoption of a competitive test that defines a competitive market as those with at least four facilities-based providers is not reasonably tailored to address isolated allegations of excessive rates because it would treat nearly all markets as non-competitive."