Martin Explains Broadband Vote; Whitacre Says AT&T Will Ask for Same Relief
LAS VEGAS -- The FCC’s decision to give Verizon regulatory relief for broadband services (CD March 20 p1) is a prime example of the agency’s goal to make sure regulatory policy doesn’t impede deployment, FCC Chmn. Martin said Tues. at USTelecom’s TelecomNext show here. Such decisions encourage investment by making sure govt. doesn’t improperly intrude on the market, he said.
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AT&T CEO Ed Whitacre, who also spoke at the convention, told reporters his company probably will be next to seek regulatory relief along the lines of Verizon’s petition -- a move Martin later told reporters he would support.
Martin said the govt. still has a role where the market hasn’t addressed consumer concerns such as assuring universal E-911 and making sure rural areas aren’t “left behind.” Among rural issues that must be dealt with, he said: Phantom traffic, whether a IP providers should be paying a bigger share of access charges, intercarrier compensation reform and updating the universal service mechanism. The current intercarrier compensation process, which includes numerous different types of intercarrier payments, “encouraging arbitration,” Martin said: “That’s why I've been encouraging a unitary rate, but not necessarily across the country. It could be different for rural and urban areas.”
Speaking to a supportive audience, Martin repeated his view that video competition depends on elimination of entry barriers and access to content. “You can’t have competition without access to content, he said, noting the FCC needs to revisit its program access rules this year.
Rather than giving a speech, Martin engaged in Q&A with USTelecom Pres. Walter McCormick during a visit on the way back from an appearance at a CompTel show in San Diego. Before leaving, Martin toured the TelecomNext show floor, asking about E-911 solutions at a Verizon booth, getting a tutorial on improved network testing from Alltel Supply and watching a demonstration of Microsoft TV. AT&T executives gave Martin a tour of AT&T’s Network Disaster Recovery vehicles that operate as mobile central offices for public safety officials and were used in the aftermath of the 911 terrorist attack in 2001 and Hurricane Katrina.
Whitacre tackled mainly franchise reform and network neutrality in a speech shortly before Martin’s appearance. AT&T supports statewide or national franchising rules because if AT&T was granted one franchise daily it would take the company more than 6 years to complete the process, he said. On network neutrality: “There’s a lot of talk aimed at scaring people into thinking access to the Internet is at risk.”
Access isn’t the point, he said. AT&T has no intention of blocking access, which would be “bad business.” However, its prices for Internet might vary based on speed, he said. Building out a fiber network is a multibillion-dollar endeavor and companies make such investments with the idea of recouping the investment through “attractive service” to customers, who will pay for it, he said, calling that concept “the commercial solution.” - Edie Herman