ILECs Support, Rivals and Michigan PSC Oppose USTelecom Nondominance Bid
A USTelecom bid for ILEC relief was backed by incumbents but opposed by rivals and a state regulatory commission, as six parties responded to an FCC request to refresh the record by Monday in a proceeding that started three years…
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ago. CenturyLink, USTelecom and Verizon said the FCC should grant the ILEC group's December 2012 petition asking the FCC for a declaratory ruling that incumbent telcos are nondominant in the provision of switched access services. CenturyLink called the petition's factual foundation "indisputable," given the "remarkable transformation" in "the competitive landscape, whereby almost 50% of U.S. households are 'wireless only'" and traditional ILEC phone service is being eclipsed by interconnected VoIP. "The record overwhelmingly demonstrates that ILECs are not dominant carriers in the provision of voice services and, therefore, dominant carrier regulation of ILEC switched access services is unnecessary," CenturyLink commented in docket 13-3. "There is no question that some relief here is warranted, and declaring ILECs to be non-dominant would be the cleanest approach," USTelecom said. "We do not seek blanket deregulation of ILEC switched access voice services; rather, we seek a narrow scope of relief that would result in the consistent treatment of all providers in this highly competitive marketplace as 'non-dominant' providers." Verizon agreed, saying the petition "seeks only regulatory parity" among local phone competitors. But General Communications Inc., the Michigan Public Service Commission and Sprint opposed the petition. The FCC should deny the petition "as vague, unsupported, and inconsistent with precedent," GCI said. "To the extent it grants any relief, the Commission should ensure that it does nothing to backpedal on the reforms of the [2011] USF/ICC Transformation Order and the subsequent implementing orders or to prejudice ongoing proceedings or other carriers." The Michigan PSC said ILECs remain dominant in the provision of switched access services. "The data provided in the petition is outdated and not applicable to every area. Although wireless and broadband technologies continue to experience growth, not every customer currently has access to these options. ILEC carriers remain the most reliable, and in many cases the only option for customers in rural and underserved areas," the PSC said. Sprint said that all the reasons it listed for opposing the bid three years ago remain valid.