APPEALS COURT SENDS VERIZON FORBEARANCE PETITION BACK TO FCC
The U.S. Appeals Court, D.C., Fri. ordered the FCC to reconsider a 2002 Verizon petition seeking forbearance from Sec. 271 unbundling requirements when they're lifted under Sec. 251 of the Telecommunications Act. The decision was a potential win for the Bells that they hope will prompt a quick decision regarding Sec. 251 rules for broadband loops.
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The court refused a Verizon request that the FCC address the issue within 30 days, but said the Commission must either grant Verizon’s petition for forbearance or provide a “reasoned explanation” for denying it.
Verizon said the decision was a positive development for ILECs: “Clarifying that the broadband rules adopted in the Triennial Review Order aren’t trumped by a different section of the law is critical to widespread deployment, and to fulfilling the administration’s and the FCC’s broadband vision. We are eager to work with the FCC to promptly resolve this issue.”
An ILEC source said the decision should prompt the FCC to put the issue on the “front burner.” The Commission “should be embarrassed enough to focus on whether 271 ought to require you to unbundle broadband loop, and act quickly,” the source said. “You'd think now they'd act on it this summer.”
But Jason Oxman, gen. counsel to ALTS, said the court’s decision was much less than what Verizon had asked for in oral arguments. “This is largely a procedural victory for Verizon,” he said. “The court said that the FCC failed to explain its reasoning for denying Verizon the relief it sought… The court didn’t order the FCC to act in any particular timeframe. It didn’t order the FCC to grant Verizon the relief it sought.”
Verizon filed a forbearance petition in July 2002 seeking clarity for both narrowband and broadband loops. Then, one day before a 15-month deadline for FCC action, the Bell filed an ex parte letter revising its request saying that given the critical nature of the decision it was seeking clarity just on broadband. The FCC at that point rejected the original request and treated the ex parte letter as a new forbearance request. In April 22 oral arguments the FCC argued that the Triennial Review Order rendered the argument moot.