Bell companies’ claims that open-access regulations are eliminati...

promise of broadband deployment” but “in reality, the RBOCs have a long track record of breaking promises to deploy broadband infrastructure in return for regulatory concessions.” Bell companies want reduction of unbundled network elements (UNEs) and changes in total element long run incremental cost (TELRIC)-based pricing, letter said. “RBOCs reneged on promises to deploy broadband facilities long before the Federal Communications Commission implemented rules that enabled competitors to use the incumbents existing infrastructure,” letter said. Examples included: (1) 1995 promise Ameritech Indiana (now SBC) made to Ind. Utility Regulatory Commission (IURC) in exchange for dropping certain aspects of jurisdictional oversight. Ameritech Indiana promised to spend more than $120 million on infrastructure improvements for schools, hospitals and major govt. centers. But 1999 IURC report said SBC had invested only $18 million in infrastructure improvements, well short of the $80 million it had promised at that time. Report also said SBC counted infrastructure provided to customers that were not schools, hospitals or major govt. centers toward its plan. (2) In 1993, Bell Atlantic Pa. (now Verizon) used Pa. public utility code provision to promise universal bandwidth of at least 45 Mbps in exchange for alternative regulation. In 2000, Verizon said it would meet promise by deploying DSL throughout Pa. DSL can only achieve speeds of 1.5 Mbps, slower than 45 Mbps speed Verizon promised, letter said. Pa. PUC expressed concerns that Verizon wouldn’t meet goal of deployment to 50% of rural customers by 2004 and that residential DSL deployment lagged behind deployment to business customers. Letter said FCC line-sharing order dramatically increased broadband deployment. “Without line sharing, there would be no competition in this market,” letter said.