FCC Seen Working to Have BDS Draft Ready for April Vote; Some Skeptical
FCC members could vote on a business data service (BDS) order at their April 20 meeting, industry representatives and others told us Friday. Staff is drafting an order that appears likely to be placed Thursday on the tentative agenda for the meeting, several said, though some others were doubtful of an April vote. There's general agreement the action is likely to be deregulatory. Commissioner Mignon Clyburn Tuesday voiced concern about preserving BDS competition (see 1703210017).
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“I’m hearing it’s likely for April but it could change,” said Russell Hanser of Wilkinson Barker, who represents mid-sized ILECs in the proceeding. “My sense is staff is working to meet deadlines, but as always with these things, whether it’s on the agenda or not will probably be a game-time decision.” He said the record shows evidence of intense competition in the BDS market: “It’s time to let ILECs, CLECs, cable providers, and others compete on an even footing and based on the merits of their offerings. Whenever the FCC acts, we hope it recognizes that the era of ILEC dominance in BDS markets is long gone and that consumers benefit from a competitively neutral framework.”
Staff is working to have a draft ready for inclusion on the Thursday tentative agenda, said an informed source: "Could there be some sort of last-minute side-step, yeah, but they’re working as if it's a green light." The person said the FCC draft could take cues from the light-touch framework proposed by AT&T (see 1703140046). CCMI telecom consultant Andrew Regitsky offered a similar view recently (see 1703170018). CenturyLink and Frontier Communications Tuesday asked the FCC to declare all incumbent telco BDS offerings "nondominant," with relief from tariffing, price-cap and other requirements. The commission didn't comment Friday.
One industry law practitioner said April action is looking likely. "The sense I get is they want to resolve this and issue an order that decides the rate regulation framework and complete this process," the attorney said. "I think it will be fairly conclusive." An industry observer said there was "high probability" the FCC would act in April in a deregulatory fashion. An industry representative wasn't as sure: “What I’ve heard is they’re trying to get something done sooner rather than later, and April isn’t out of the question. I think they’re trying for that, but it’s hard. There are a lot of moving parts.”
“It will be deregulatory, along lines of the AT&T ask," said an industry lawyer. "Maybe on the April docket, more likely May.” An industry official cited a lengthy filing by Sprint (see 1703230051) as making it "much more difficult to do in April," particularly given the desire of FCC leadership to further deregulate legacy TDM services, which would reverse the course eyed under previous Chairman Tom Wheeler. "I think it raised the bar for getting an order done that the general counsel’s office feels like they can defend in court," said the official.