COMPETITORS, CONSUMER GROUPS WEIGH IN ON FCC’ UNE REVIEW
Debate over FCC’s triennial review of unbundled network elements (UNEs) continued Thurs. with several parties expressing concerns about effect on competition and USTA warning that UNE process stymied investment. Today (Fri.) is deadline for comments in proceeding on whether current UNE list can be reduced and whether such reduction could be made on geographic or service-specific basis. UNE regime requires Bell companies to lease portions of their network to their competitors.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
In audio news conference Thurs., AT&T said there was no truth to Bells’ argument that competitive access to UNEs discouraged investment in facilities, one of questions FCC posed in notice of proposed rulemaking (NPRM) issued in Dec. (CD Dec 13 p1). AT&T Gen. Counsel James Cicconi said experience in N.Y. showed that if local competitors could start out by leasing UNEs, they eventually would invest in their own network facilities. On other hand, limiting access to UNEs could have devastating effect on CLECs and future of competition, he said. If competitors lose access to any UNEs, “the market will evaporate,” Cicconi said. Bells have been urging agency to cut back on number of UNEs available for competitive use -- for example, eliminating switching and transport in some areas. ILECs also have raised concerns whether they should make UNEs available when they build new broadband facilities. Cicconi downplayed Bell concerns about broadband UNEs, saying they just wanted to “extend their monopoly to the DSL market.”
Group of consumer groups expressed concern that review could result in “radical policy shift” that would hurt competition and consumers. Consumer Federation of America (CFA), Consumers Union, Center for Digital Democracy and Tex. Office of Public Utility Counsel said ideas raised in NPRM would replace market-opening regulations with rules “that would encourage the development of closed, proprietary communications networks.” CFA Research Dir. Mark Cooper said FCC was “twisting the language of the Telecom Act to pursue backdoor deregulation.” WorldCom said FCC should “resist unprecedented pressure from the Bell companies” to limit UNE availability. Company said its comments filed today would emphasize that Bells still enjoy too much monopoly control 6 years after Telecom Act was passed. WorldCom Gen. Counsel Michael Salsbury said: “The Commission should not use this triennial review as an opportunity to prematurely declare victory and begin to dismantle the foundation upon which local competition will be built.”
USTA Gen. Counsel Lawrence Sarjeant said changes in UNE policy could encourage local competition, rather than discourage it, as competitors said. That’s because UNE proceeding could lead to “real competition, not unsustainable competition created by regulatory requirements that stifle investment by significant service providers like ILECs,” Sarjeant said.