UBS said in a report Thurs. that the Bells have signed commercial...
UBS said in a report Thurs. that the Bells have signed commercial agreements with 30-50% of their UNE-P base of 16 million lines. The report provided some of the most complete numbers yet on commercial agreements to replace UNE-P.…
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.
Not all Bells have provided complete numbers. BellSouth didn’t give a line count for a contract it signed with AT&T citing a confidentiality agreement with the CLEC. UBS said UNE-P contracts will give Bells a “modest boost” of $95 million in EBITDA or roughly 35 basis points of wireline margins for the Bells collectively. The Bells obtained deals about $4 per line higher than under UNE-P regulation, UBS said. On the negative side, UBS sees a base dwindling by 6.5 million to 9.8 million over 5 years based on 3.5% monthly churn. Qwest likely has agreements on the highest percentage of lines, UBS said. UBS said BellSouth, following a deal with AT&T, has 38% of its UNE-P lines under agreements. For SBC the percentage is about 50% and for Verizon 38%, UBS said.