FCC commissioners have approved by a 3-2 vote an order that would...
FCC commissioners have approved by a 3-2 vote an order that would effectively end the commission’s 13-year-old special access regime, halting further grants of pricing flexibility petitions pending the receipt of more data, agency officials said Wednesday. The order does…
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not include a much-awaited mandatory data request, though the commission does commit to ask for additional data within 60 days. The order was expected to be released Wednesday after our deadline. Both commissioners Republican Robert McDowell and Ajit Pai, as expected, filed dissents, officials said. Stifel Nicolaus said in a research note a delay in approving additional pricing flexibility grants likely won’t prove material. “While we believe special-access reform creates some revenue overhang for the Bells … we do not believe the near-term suspension of the deregulatory mechanism will have much, if any, market impact, and we note it has been expected for some time,” the firm said. “Our understanding is there are no further telco petitions pending or in the works, after AT&T and Windstream recently gained deregulation in certain markets.” Stifel said the mandatory data request appears to be necessary “after voluntary data requests failed to generate sufficient information from Bell competitors to sort out marketplace complexities and conflicting industry arguments. The Bells/telcos say the special-access market is competitive and, if anything, should be further deregulated, while their critics … say the Bells have market power, extract inflated prices from competitors and businesses using their special-access circuits and services, and should be regulated more heavily.”