In continuing battle over unbundled network element (UNE) regulat...

“myths” about situation such as: (1) UNE rates were below cost. Frisby said state regulators had looked at those rates many times and more often than not had lowered rather than raised them. (2) Competitors used UNE platforms to cherry- pick lucrative customers. Frisby countered that UNE-P was used most often to serve residential and small business customers. (3) Competitors that used UNEs didn’t want to invest capital or deploy new facilities. Frisby said “that’s just wrong” because “UNE-P providers are making capital investments in long distance, broadband and local networks.” (4) UNE-P was harming Bells’ profitability. “It is worth noting that the Bell companies’ profits also have taken a hit because the companies have squandered hundreds of millions of dollars in bad foreign investments,” Frisby said. (5) State regulators were lowering UNE prices because they were too wedded to old view of regulatory policy. Frisby, former Md. state regulator, said “nothing could be further from the truth” because state regulators were closer to real world than was federal govt. He said “FCC only deals with paper.” with no opportunity to question witnesses as state commissions do. “State proceedings are more focused on fact- finding,” he said. On other issues, Frisby said: (1) He expected Bells to work for “some sort of rider on some sort of appropriations bill” to gain broadband relief. “The Bells are spending an awful lot of time on the Hill. I wish the Bells spent as much time in the market or in each other’s markets.” (2) FCC was wrong in looking at intermodal competition in context of wireline broadband regulation because “2 monopolies are no better than one.” (3) He feared policymakers would buy argument that Bell deregulation was needed to ease bad economy: “For years the medical community thought the cure for illness was to apply leeches, which is what the Bells are suggesting, bleeding CLECs to cure the economy.” USTA spokeswoman said CompTel had “chosen to ignore economic reality.” She said USTA also favored fair competition but: “The current situation brings neither fair nor real competition. Current regulations jeopardize healthy companies by forcing them to foot the bill for others.”