Appeals Court Denies Stay to FCC’s BDS Reform
In April, the FCC adopted an order stating that legacy regulation of BDS “inhibits the investment required for the transition of BDS from legacy TDM networks to high-speed Ethernet connectivity.”
In April, the FCC adopted an order stating that legacy regulation of BDS “inhibits the investment required for the transition of BDS from legacy TDM networks to high-speed Ethernet connectivity.”
The FCC plans to loosen regulations for special access in “competitive” areas.
Earlier this month, Verizon and Incompas submitted a proposal that includes price reductions and a competitive market test for the FCC to consider as it analyzes the market.
Earlier this month, Verizon and Incompas submitted a proposal that includes price reductions and a competitive market test for the FCC to consider as it analyzes the market.
While special access – a wholesale data service – is not an electrifying offering, the stakes are high for the U.S. telecom industry.
Last month, AT&T joined the five coalition members in requesting that the FCC strike “irretrievably flawed” data underlying the agency’s proposal to reform the market for business data services.
The phone carriers said the market for Ethernet cable services is significantly more competitive than was indicated by data upon which the Federal Communications Commission relied in proposing reforms to the market for business data services.
The FCC prematurely deregulated the special access market and incumbents have abused their power, earning fat profits by setting prices far in excess of the costs of service, according to the Consumer Federation of America.
The FCC must decide what the special access data actually shows and how it should regulate or deregulate the local loops that CLECs often lease from the likes of AT&T, CenturyLink and Verizon.
Communications regulators will investigate the phone carriers’ tariff pricing plans for business data services, or so-called special access, to determine whether they are anticompetitive and unreasonable as alleged by Level 3 Communications and other telecommunications providers.
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