FCC OPENS REVIEWS OF UNE POLICIES, ILEC BROADBAND REGULATION
FCC at its agenda meeting Wed. approved 2 notices of proposed rulemaking (NPRMs) to review regulatory treatment of unbundled network elements (UNEs) and ILEC broadband services. FCC said 2 proceedings were part of broader effort to review competition policies in light of developments in marketplace. Agency said that in addition to Wed. items, it would begin “more comprehensive” review of broadband policies in next few weeks in response to concerns that surfaced recently on ILEC provision of DSL services to competitors.
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Long-awaited triennial UNE review will look at several issues that are important to incumbent LECs and their competitors, FCC said: (1) Whether to make changes in current list of UNEs taking into account “other goals of the [Telecom] Act such as encouraging broadband deployment, investment in facilities and technological innovation.” Some at FCC have indicated that might lead to shortening UNE list. (2) Whether Commission should take more “granular” approach by targeting UNE requirements by type of service or geography. ILECs are required to offer competitors access to parts of their networks, or UNEs, charging wholesale prices. (3) Appropriate role of state regulatory commissions in implementation of unbundling rules. CompTel, supported by NARUC, had urged FCC to open federal-state joint conference on UNEs. FCC didn’t mention that request but it did ask for comment on proper role of states, indicating it would consider joint conference idea in that context.
FCC folded several current proceedings into UNE review, much to consternation of competitors who had hoped to have speedier action on some of them. Agency probably won’t take action on UNE NPRM until well into 2002. Among those items is EELs (enhanced extended links) proceeding in which competitors seek clarity on ILECs’ obligation to share switch-transport UNE combinations. Commission also folded so-called “switching carve-out” proceeding into UNE review. In that proceeding, competitors asked Commission to ease up on limits it set for use of switching UNE based on geographic areas and number of customer lines. FCC Common Carrier Bureau Chief Dorothy Attwood said that since carve-out proceeding was only other place where Commission had taken “granular” approach, it made sense to combine it into new proceeding. Taking more granular approach might make sense because “local markets are just that, local,” Chmn. Powell said. There’s “danger” in taking “one-size-fits-all” approach, he said. He said UNE item “explores giving us new tools, a more fine scalpel to make our regulatory cuts.”
ALTS Gen. Counsel Jonathan Askin said if FCC could take such “comprehensive” action in setting broadband UNEs, “it’s that the Tauzin-Dingell bill isn’t necessary.” Responding to comments by agency officials that UNE review would help both ILECs and CLECs, Askin said CLECs asked for fast action on “closing loopholes” and agency “punted to a proceeding that could continue for a year, a proceeding where some UNEs could disappear.” By time FCC acts on whether to give EELs combos it could drop transport as element, making EELs unusable, he said.
On broadband NPRM, FCC said it would examine appropriate regulatory treatment for ILEC broadband services to determine whether “legacy regulation” should be eased in some circumstances. ILECs generally are treated as dominant carriers, meaning they are subject to certain requirements such as tariff filings and pricing rules. FCC staff explained that current rules were set up when ILECs had little competition but now they face wireless, satellite and other rivals.
Agency will ask whether ILECs possess market power in any markets and whether regulations should be targeted to certain products and geographic areas. Agency also will seek comment on SBC petition asking for ruling that it’s nondominant for broadband services. Comr. Abernathy said item boiled down to “whether the safeguards placed on incumbents when they were legally sanctioned monopolies continue to make sense.” She said issue was complicated “and not without controversy.”
Intel praised FCC for launching proceedings to examine “whether current unbundling and pricing regulations are delaying the timely deployment of broadband services.” Intel Communications Policy Dir. Peter Pitsch said “rigorous and expeditious” review would “advance the goal of making high- bandwidth broadband available to all Americans at affordable rates.” Comr. Copps said 2 NPRMs were improved through discussions preceding meeting and he was particularly pleased that items didn’t come to tentative conclusions.