The FCC’s special access review creates “downside risk for larger...
The FCC’s special access review creates “downside risk for larger incumbent telcos” such as AT&T, Verizon and CenturyLink, which have benefitted from special-access deregulation, said Stifel Nicolaus analyst Christopher King in a report Thursday. The review also creates “potential upside”…
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for CLECs, which often lease out incumbent telco lines, King said. King expects regulation to be “measured” due to “opposition from the Bells and their congressional allies.” Potential changes in FCC leadership, and AT&T’s push for agency action to facilitate the packet-mode transition (CD Nov 10 p11), could add “further wrinkles” to the request, King said. While the Bells “appear to be playing mostly defense” in the special access proceeding, they are “attempting to play offense in pushing for FCC actions to speed the transition” from traditional circuit-switched phone systems to Internet Protocol technology, he said. “We expect much wrangling.” But King doubts the commission will make any sweeping decisions before 2014, given the pending Paperwork Reduction Review, the time needed to formulate recommended actions, and the potential departure of Chairman Julius Genachowski.