FCC OKAYS SBC SEC. 271 PETITION AMID CONCERNS ABOUT DSL RESALE
FCC decision to let SBC offer long distance service in Ark. and Mo. (CD Nov 19 p1) could be affected by further action agency plans to take on carriers’ DSL resale obligations, Comr. Copps said in statement issued late Fri. Copps, who concurred in voting, said “questions raised in the closing hours of deliberation, arguably going beyond the Sec. 271 process, compel further consideration which the Commission… agrees to undertake in a new and separate proceeding to be initiated at the end of the year and completed as soon as possible next year.” He said that proceeding “could conceivably lead to changes in the implementation of the majority decision to authorize SBC to provide long distance service in [Ark. and Mo.]” Copps said majority of commissioners concluded “that our precedent is not adequately clear” on DSL resale issue.
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FCC’s order stated that “neither the [Telecom] Act nor Commission precedent explicitly addresses the unique facts or legal issues raised in this case.” Order says: “The Commission has not addressed the situation where an incumbent LEC does not offer DSL transport at retail, but instead offers on an Internet access service.” Agency said new proceeding on “the regulatory treatment of the underlying transmission facilities provided by incumbent LECs to their affiliate [ISPs] could have far-reaching implications for a wide range of issues” such as universal service and cable access.
It was clear in statements issued by other commissioners that DSL resale issue was big area of debate as agency weighed SBC’s Sec. 271 application. At issue is whether SBC is wrong in not offering its DSL Internet access services to competitors for resale. Comr. Abernathy said SBC provided 3 separate categories of DSL-related services but offered only one of them for resale, which sold DSL transport services to business customers through its affiliate Advanced Solutions Inc. (ASI). It doesn’t offer other 2 because it considers them wholesale information services, rather than retail telecom, she said: (1) ASI’s sale of DSL transport services to ISPs. (2) Sale of DSL Internet access services to end users via SBC’s affiliated ISP, Southwestern Bell Internet Services (SBIS). Abernathy said she was “inclined to agree that this is the most reasonable interpretation of the Act” but further proceeding could cause her to change her view.
Comr. Martin said he also tended to agree with SBC on issue, which he said centered mainly on last option -- SBIS provision of service to end users. He noted that FCC in past had said clearly that Internet access services were classed as information rather than telecom services. Competitors and others who argued that SBIS services should be made available for resale “must show how… this is a ’telecommunications service’ being offered at ‘retail,'” Martin said.
SBC said it would begin offering long distance service in Ark. Nov. 26 when FCC order became effective. Mo. launch will follow final regulatory approval by Mo. PSC of SBC’s certificate to provide long distance service in state. Company will use Williams Communications’ facilities as its backbone long distance network in Ark. and Mo., as it does in Kan., Okla., Tex.
AT&T Vp Len Cali said SBC was likely to offer service “by reselling steeply discounted facilities and services of other long distance carriers and yet the FCC’s order overlooks the fact SBC denies others these same competitive opportunities in its local markets.” He said wholesale prices in Ark. and Mo. “simply remain too high to permit meaningful competition.”