Wheeler Plans August Vote on IP Transition Consumer, Competition Orders
The FCC plans to vote at its Aug. 6 meeting on two draft IP technology transition orders that Chairman Tom Wheeler is circulating with commissioners, agency staff said Friday. The drafts would create a regulatory framework as telecom carriers migrate from traditional circuit-switched, copper-based phone networks to packet-switched, IP-based broadband systems using fiber and other networks. The intent is to “help deliver the promise of dynamic new networks, provide clear rules of the road for network operators, and preserve our core values, including protecting consumers and promotion competition and public safety,” Wheeler said in an FCC blog.
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Under one draft, providers would have to inform consumers about their power limitations and give them the option of buying at least eight hours of backup power capability, said FCC senior officials on a press call and an agency fact sheet. Under the other draft, telecom carriers would have to notify both consumers and competitors of copper retirement plans, and to offer competitors replacement wholesale services at rates, terms and conditions that are “reasonably comparable” to those of legacy services, they said, noting the latter would be an interim measure while the FCC reviews its broader wholesale rules in a special-access proceeding. An accompanying further NPRM would propose to clarify and codify the criteria for reviewing carrier applications to discontinue or limit service under Section 214 of the Communications Act.
CLECs generally cheered the Wheeler proposals. Comptel is “strongly supportive” of the “pro-competition” items, said CEO Chip Pickering in a statement, which called the reasonably comparable provisions “an important step.” USTelecom, representing ILECs, called the FCC action a "helpful step" in facilitating the tech transitions, but it was wary of the wholesale access proposals. “We understand the commission's concern with competition in enterprise markets, but given the degree of competitive service choices available, mandates that new services be reasonably comparable to legacy services threaten to complicate and delay the transition without providing any significant counterbalancing benefit," said Senior Vice President Jon Banks in an statement.
The reasonably comparable standard would not be as strict as the standard the FCC proposed in a November NPRM that would have required equivalent wholesale access on equivalent rates, terms, and conditions.
Wheeler is seeking a backup power mandate because fiber and other emerging networks -- unlike copper networks -- usually don’t have independent electrical power, making them vulnerable if the power grid is disrupted. His first draft would require providers to inform subscribers and new customers about the risks and their options, which must include the choice of buying a technical solution offering at least eight hours of standby backup power, either from the provider or a third-party retailer, the fact sheet said. Providers would have to offer a 24-hour backup power option within three years. “I would stress the word option,” Wheeler said. “It would be up to consumers to make the best choice for themselves.” Cable and telco providers had said obligatory backup power installation wasn’t needed and would be wasteful because consumers could use alternatives in an outage, particularly wireless. In an emailed statement, NCTA said it appreciated Wheeler’s recognition that the backup power decision “should be made by individual consumers, not mandated by the federal government."
The second draft order would require carriers, for the first time, to notify consumers if they decide to retire copper networks, the officials said. Residential customers must be given about three months’ notice and nonresidential customers about six months. “Retirement” would be defined to prevent carriers from letting their networks degrade through neglect -- or “de facto retirement” -- which Public Knowledge has voiced particular concern about. Carriers also would have to notify interconnected carriers about planned copper retirement, but they wouldn't have to file a Section 214 application seeking FCC approval "as long as no service is discontinued, reduced, or impaired,” the fact sheet said.
In noting the requirement on carriers retiring copper networks to provide competitors with replacement services on reasonably comparable rates, terms and conditions, neither the senior officials nor the fact sheet mentioned the equivalent access standard proposed in November. Nor did they mention six principles that Windstream and Comptel proposed to ensure equivalent access. But another FCC official told us the draft would adopt five of those six principles and turn them into questions when the FCC considered carrier replacement services in their totality. Windstream emailed a statement applauding Wheeler and said it “extends its full support for the proposal the chairman describes in his blog and looks forward to learning more of the details.”
The draft would also clarify that a carrier planning to discontinue a service that has only carrier customers (i.e., a wholesale-only service) would still have to follow the statutory discontinuance process “if the action would negatively impact retail users served by those carrier customers,” the fact sheet said. “While a carrier’s discontinuation of a wholesale service may not always discontinue service to retail end users, the carrier still must undertake a meaningful evaluation to determine whether the statutory discontinuance process is triggered.” Wheeler said, “Bottom line: there has been competition for wholesale services before the technology transitions, and there will be competition in this market after these transitions.”
The draft NPRM would tentatively conclude that the FCC should codify and clarify the criteria it uses for reviewing carrier Section 214 applications to discontinue, reduce or impair service, the fact sheet said. It would specifically seek comment on whether to include these possible criteria: “support for 911 services and call centers; network capacity and reliability; quality of both voice service and Internet access; interoperability with devices and services, such as alarm services and medical monitoring; access for people with disabilities, including compatibility with assistive technologies; network security in any IP-supported network that is comparable to the legacy network; and coverage throughout the service area, either by the substitute network or via service from other provider.”
The Broadband Coalition, which has four Comptel members -- Earthlink, Level 3, Windstream and XO -- also applauded Wheeler’s proposals. The chairman’s announcement “recognizes the important role competitive broadband providers have in providing business customers and institutions -- including schools, libraries, health care facilities and government offices -- with innovation, more choices, and lower prices,” said spokesperson Jeff Sharp in an emailed statement. In separate emailed statements, Level 3 and Sprint both commended Wheeler’s plan and work. "Chairman Wheeler's proposal will help ensure that the network transition won't leave customers behind," Level 3 said. “We believe today's proposals are a good, first step and urge the Commission to build on this progress by taking meaningful action on much-needed, pro-competitive broadband reforms,” Sprint said.