Tag Archives: clec

FCC allows more time to debate the death of independent ISPs

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An attempt by incumbent telephone companies to cut off competitors’ access to leased lines was slowed down a bit by the Federal Communications Commission on Friday. The deadline for reviewing a request by telco lobbyists that has the potential for killing off many, if not most, independent Internet service providers was extended by two months.

USTelecom, a lobbying front for big telcos, such as AT&T and Frontier Communications, as well as small incumbents, asked the FCC to eliminate rules that require telcos to lease copper DSL circuits and other facilities on a wholesale basis to “competitive local exchange carriers” (CLECs). The lobbyists invoked a fast track procedure – a petition for forbearance – that skates around some of the FCC’s usual due process when major decisions are made.

It would be a major decision. Without wholesale access to telco copper, most independent ISPs, which typically register as CLECs, would be left without a wireline pathway to subscribers.

The FCC is still considering a motion made by another lobbying group, Incompas, which represents a variety of content, equipment and independent telecoms companies. It asked the FCC to simply dismiss USTelecom’s petition, because it didn’t include the complete set of back up information that the fast track process requires.

The California Public Utilities Commission seconded that request, at least to the extent that “all of the data USTelecom relies on to support its petition…must be in the record”. Yesterday, Central Coast Broadband Consortium (CCBC) filed a letter with the FCC, also asking it to toss out USTelecom’s maneuver

In its petition, USTelecom proposes a radical overhaul of telephone industry regulation. Extraordinary conclusions require extraordinary evidence. USTelecom’s petition3 is a mundane recitation of self-interested opinion backed by the barest summary of cherry picked data. Full disclosure of all underlying data is essential for proper consideration of its request.

Full disclosure: I drafted and filed the CCBC’s letter.

Additional information and comments are now due on 6 August 2018, with rebuttals due a month after that.

Telcos ask FCC to kill broadband competition

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Wireline telephone companies, big and small, don’t want to be forced to share their lines with competitors. So last month, their lobbying front in Washington, D.C. – USTelecom – asked the Federal Communications Commission to scrap rules that require them to sell wholesale lines and other services to smaller companies that don’t own infrastructure.

These competitive local exchange carriers (CLECs) resell those services to retail customers, usually after adding their own equipment or other resources to the mix. You might not think of them as competing telephone companies, though. These days, they lease copper lines to provide Internet service, most commonly via some flavor of DSL, but also using other, more advanced technologies. Competitive, independent Internet service providers would be a better label.

USTelecom is using a fast track procedure called a petition for forbearance. If the petition is “complete as filed” – in other words, includes all the supporting data behind the request – then the FCC has 15 months to accept or reject it. If the clock runs out, it’s automatically granted. So the FCC tends to set short deadlines for public comments. In this case, the FCC allowed about a month for opponents and supporters to weigh in, and another two weeks for rebuttals.

That’s an awful short time for such a major decision. If the FCC goes along with the incumbent telcos’ request, it will put a lot of CLECs out of business, and dramatically change the competitive landscape, such as it is, for broadband service.

There’s another problem: the rules requiring telcos to lease out DSL and other broadband-ready lines on a wholesale basis are really telephone rules, designed to create a competitive market of sorts for POTS – plain, old telephone service. USTelecom is correctly claiming that fewer and fewer people are using POTS, preferring (or at least accepting) mobile phones and VoIP (voice over Internet protocol) service delivered via unregulated landlines as a substitute. If it so chooses, the FCC can kill an entire sector of the broadband market by simply accepting USTelecom’s argument that legacy POTS doesn’t matter anymore.

Comments on USTelecom’s petition are due next Thursday, and rebuttals two weeks after that. The California Public Utilities Commission will file comments – California law requires it – but it’s requesting a three month extension to gather information from telcos. As a memo adopted by the commission yesterday puts it, “contrary to what USTelecom argues, the effect might be to freeze the smaller…CLECs out of a number of markets”.

Other groups are similarly asking for more time, and challenging the completeness of USTelecom’s filing – it’s long on rhetoric and simple graphs, but lacks the kind of detailed data one might wish the FCC to examine.

Assuming, of course, that the FCC hasn’t already made up its mind.