There's "no basis" for the FCC to treat model-based rate-of-return telcos differently than price-cap carriers on "TDM transport," as an NPRM on rural carrier business data services proposed, said a filing on a meeting ITTA, USTelecom, TDS Telecom, Great Plains Communications, Hargray Communications and Consolidated Communications executives had with Wireline Bureau Chief Kris Monteith and aides, posted Monday in docket 17-144. The telcos said "competitive disparity" with unregulated competing transport networks "hamstrings model-based rate-of-return carriers' ability to price transport appropriately" in markets. Eliminate ex-ante regulation of such RoR carriers' TDM transport, just as the FCC did for price-cap carriers, they asked. They also met with an aide to Chairman Ajit Pai to seek BDS relief. Some pressed for "fully funding" model-based and legacy RoR USF mechanisms in meetings with the Pai aide, Monteith and staffers (here, here).
USTelecom and NTCA urged the FCC to grant their requests to revisit certain rural call completion (RCC) rules adopted in an April order (see 1804170025). USTelecom noted NCTA and ITTA backed, and only NTCA opposed, its petition to reconsider rules on intermediate carrier monitoring obligations of "covered" (originating) providers not subject to a safe harbor. The rules take effect Oct. 17, though USTelecom sought a related stay. NTCA "glosses over the valid concerns" and "mischaracterizes key aspects" of the order, USTelecom replied, posted Tuesday in docket 13-39. NTCA responded to opponents of its petition asking the FCC to require covered providers to file their RCC monitoring procedures (see 1808060027). "It is difficult, if not impossible, to see how the task of submitting procedures already required to be documented by the Commission could possibly be 'burdensome,'" replied NTCA: "The benefit is certain and clear," giving covered providers "better incentives both to develop effective procedures and then to hold fast to those procedures" and allowing the FCC to forego "potentially time consuming recordkeeping requests" in future investigations. Verizon backed FCC efforts to implement the Improving Rural Call Quality and Reliability Act (RCC Act), the subject of an accompanying April Further NPRM. "Limit application of the RCC Act to rural areas," adopt "flexible service quality standards for intermediate providers" and "establish compliance deadlines," recommended the telco on a discussion with Wireline Bureau officials. HD Tandem "explained the cost-shifting techniques of different carriers in handling" rural call traffic and backed "registration for all intermediate carriers," said a filing on a discussion with some of those staffers.
The FCC wants to dispose of NTCH petitions for reconsideration dealing with the agency allowing Dish Network to convert satellite spectrum for terrestrial wireless use, according to insiders and court documents. Related drafts were included in an array of items circulated at the agency last week (see here). NTCH had sought a writ of mandamus from the U.S. Court of Appeals for the D.C. Circuit over what it said were petitions trapped "in administrative limbo."
The FCC tweaked details but is moving ahead with one-touch, make-ready (OTMR) and other pole-attachment policies in an order and declaratory ruling aimed at streamlining processes and speeding broadband deployment. Although edits addressed some of the many concerns electric-utility pole owners and communications industry attachers had about a draft item, they didn't fundamentally change the agency's direction, according to stakeholders and our basic review of the 120-page final text in docket 17-84 issued Aug. 3. It was adopted the previous day, with Commissioner Jessica Rosenworcel partially dissenting (see 1808020034).
Many parties opposed USTelecom's petition for incumbent telco relief from mandatory wholesale unbundling discounts, resale and other duties under the 1996 Telecom Act. Telco rivals, state regulators and consumer advocates said the petition for nationwide regulatory forbearance would undermine competition and should be rejected as unsubstantiated and overly broad. Verizon was one of the few to support the petition, as comments were posted in docket 18-141, mostly Tuesday, though USTelecom, ILECs and others can file replies due Sept. 5.
Unbundling and resale obligations aren’t obsolete yet, the Public Utilities Commission of Ohio (PUCO) commented Friday in docket 18-141. PUCO opposed a USTelecom forbearance petition seeking FCC relief for ILECs from wholesale unbundling discount and resale duties (see 1808030026). “Many competitive local exchange carriers (CLECs) in Ohio must still rely on the availability of unbundled network elements (UNEs) and resale services to serve their customers,” the commission said. PUCO said it’s not won over by USTelecom revising its proposal to nearly double the amount of time telcos wouldn't be able to raise prices for unbundled network element connections that competitors can use to reach their own customers (see 1806220027). “While the Ohio Commission recognizes that the evolving telecommunications industry has undergone significant changes since the passage of the [Telecom] Act in 1996, it nonetheless believes that even following USTelecom’s proposed modification to its forbearance request, the provisions contained in sections 251 and 252 will likely continue to play an important role in promoting a competitive telecommunications market beyond the time period contemplated in the proposal.”
NTCA encountered stiff resistance and USTelecom got some backing on their petitions for reconsideration of parts of an FCC rural call completion (RCC) order, in comments posted in docket 13-39, mostly on Friday. CTIA, ITTA, NCTA, Sprint, USTelecom and Voice on the Net (VON) Coalition opposed, while WTA supported, NTCA's request for revisiting a commission decision to not require covered originating providers to file their RCC monitoring procedures with the agency. CTIA said such a filing requirement isn't necessary to achieve regulatory objectives and would unduly increase burdens. Sprint said the request "was risky and burdensome," won't generate benefits and isn't supported by any new information. NTCA offered "no compelling evidence" for why its proposed requirement would mitigate "any remaining [RCC] problems," said USTelecom. ITTA said the FCC "properly places the focus of rural call completion troubles on unidentified intermediate providers" and seeks to address them through registration and quality-of-service requirements. The FCC decision was "sensible" and consistent with its efforts to eliminate "regulatory underbrush," said NCTA. The VON Coalition said the change would add a "costly burden without any countervailing benefit." Backing the petition, WTA said, The monitoring rule "is a step in the right direction, but will lose a substantial portion of its effectiveness if the Commission is unable to inspect, require modification, and monitor these call completion procedures." ITTA and NCTA supported USTelecom's petition, which sought reconsideration of rules requiring (1) that covered originating providers directly monitor intermediate providers beyond those they're directly interconnected with, and (2) contractual restrictions to ensure quality call completion though the call path. NTCA previously opposed the petition (see 1807180035). The FCC "should abandon the covered provider monitoring requirements, or at least curtail them substantially," said ITTA. "Moreover, as USTelecom argues -- and NTCA fails to refute -- these requirements are fraught with pragmatic obstacles, and are unsupported by the record in this proceeding. They also will lead to profound confusion, and threaten to defeat the Commission’s goal of facilitating enforcement where necessary."
The FCC received more mixed views on how to curb intercarrier compensation schemes that stimulate access charges, in replies posted in docket 18-155, mostly Monday, to conflicting initial comments (see 1807230034). Incumbent telcos tended to be more supportive of the agency's main proposal -- to attack financial incentives for arbitrage by giving "access-stimulating" LECs the option of either assuming financial responsibility for traffic or allowing direct connections -- albeit with disputes, particularly over direct connection terms. Some backed a more sweeping move to bill-and-keep arrangements under which carriers generally don't pay each other for exchanging traffic. Smaller providers opposed the proposals and offered alternatives.
The Small Business Administration Office of Advocacy cited potential harms from a USTelecom forbearance petition seeking FCC relief for ILECs from wholesale unbundling discount and resale duties. The office said many CLECs are "very concerned" the FCC may grant nationwide relief. "A blanket grant of forbearance in every market could have a devastating impact on small businesses that rely on unbundled network element (UNEs) to serve customers," said SBA advocates' filing on meeting aides to FCC Chairman Ajit Pai, posted Thursday in docket 18-141. Many CLECs heavily invested in deploying fiber networks using revenue from UNE-based services, and then moved customers to their own facilities over time, creating competitive pressures and incentives for incumbents to do likewise, the advocates said. They "urged the FCC to study the impact forbearance would have on small businesses, competition and the deployment of next generation networks." SBA also addressed robocalling, infrastructure deployment streamlining and 3550-3700 GHz band issues. On the citizens broadband radio service, SBA sided with advocates of census tracts for the priority access licenses that will be part of the band. SBA has concerns that adopting larger geographic licenses could “foreclose competition and result in decreased service in rural areas.” Uniti Fiber said UNEs "enable the company to expand its service offerings and network to new customers," and it "relies especially heavily on dry copper loops" and "dark fiber interoffice transport," regarding meetings with Commissioners Mike O'Rielly and Brendan Carr, and an aide to Commissioner Jessica Rosenworcel (here, here, here). It said "the loss (or increase in price) of these inputs will have a significant impact" on its ability to make new deployments and maintain existing services. Blackfoot Communications, an ILEC/CLEC leasing UNEs from CenturyLink, said eliminating its access to UNE loops or increasing their price "would have an immediate and direct adverse impact on businesses in Montana and Idaho," given lack of alternatives. UNEs support Blackfoot's fiber and fixed-wireless expansion, it told Wireline Bureau staffers. It urged the FCC to look at the UNE specifics of each regional Bell. CenturyLink, another ILEC/CLEC, "views purchasing UNEs as a short-term strategy which is part of a larger transitional process," said a filing on a meeting it and USTelecom had with bureau staffers.
The solicitor general asked the Supreme Court not to review the merits of cert petitions appealing the U.S. Court of Appeals for the D.C. Circuit ruling that upheld the previous FCC's 2015 Title II Communications Act net neutrality order. Given the current FCC's January reversal order, the SG asked justices to grant cert but vacate the D.C. Circuit judgment and remand the 2015 order litigation with directions to declare related legal challenges moot, or to consider the effect of the 2018 order. Some thought the SG's request had a good chance.