Final Version of FCC Broadband Ruling Expected Soon
Jun. 11–CHICAGO–Two commissioners who in February tipped the Federal Communications Commission in favor of sweeping changes in the regulation of broadband Internet services said the final version of the FCC ruling should emerge soon and will contain “no surprises” from what has been announced.
The broadband policy move, which set off political shock waves because FCC chairman Michael K. Powell was forced into a dissenting minority, could have major impact on the speed at which broadband services are expanded nationally, as well as on the financial standing of Baby Bell phone companies.
Republican FCC commissioner Kevin Martin joined with the five-person commission’s two Democrats to preserve a controversial network-sharing policy hotly opposed by the Bell giants, including Verizon Communications.
The Bells contend the policy forces them to lose tens of millions of dollars selling below-price network access to companies, like AT&T and MCI WorldCom, that rent the Bells’ phone lines to provide local service.
Wall Street investors hammered Bell stocks after the February ruling, fearing it would cost the Bells significant revenues. Unions representing Bell workers fear the changes also could cost thousands of jobs as competitors take business away from the Bell companies.
At the same time, Martin joined with Powell in Feburary to support a policy that would not require the Bells to share with competitors new broadband facilities they build. The Bells say this policy will encourage them to make more investment in digital subscriber line services to compete with cable modems.
Since the FCC changes were announced in February, Verizon and other companies have been clamoring for the commission to release a detailed ruling, which is expected to run to hundreds of pages, so they can understand how their businesses and broadband deployment plans would be affected.
In interviews at the National Cable & Telecommunications Association meeting here, Martin and Democratic commissioner Jonathan S. Adelstein both said there are no disputes about the broad outlines of the changes announced in February that are delaying issuance of final rules.
“The order is basically done,” Martin said. “It’s basically down to dotting the Is and crossing the Ts.”
Adelstein added, “I think it’s as billed, pretty consistent” with earlier statements.
AT&T has said it plans to offer local phone service over Verizon lines in Massachusetts as early as this summer, while MCI hopes to expand its “Neighborhood” unlimited $55-a-month local-long distance calling plan statewide from the 40 percent of Massachusetts where it now offers the plan. But both companies have said their plans depend on the FCC maintaining the network-rental plan. Powell and the Bells have tried to eliminate that plan, calling it a forced subsidy by Bells to competitors.
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