Carriers Oppose New Regulations Following Broadband Deregulation Vote

In large part, the NPRM was an add-on to the order (CD Aug 8 p1) designed to address the concerns of Comrs. Copps and Adelstein, who cast concurring votes despite expressing some hesitation. Industry sources said Wed. it remains to be seen whether the NPRM will lead to additional regulation. The Aug. order essentially eliminated a requirement that the Bells unbundle the broadband transmission part of their Internet services, offering the component separately as a common carrier service other carriers can lease.

“To get the votes, Martin had to get Copps or Adelstein,” one carrier source said: “At the end of the day there could be some deal making on some of these things. But unless there is some demonstrated market failure there’s probably not much impetus to regulate.”

USTelecom said the Commission should “refrain from imposing any of the regulations identified in the NPRM -- regulations governing privacy, slamming, truth in billing, network outages, discontinuance of service, and rate averaging.” The group said the broadband market is increasingly competitive. In 2003, for example, 46.3% of zip codes had 4 or more high-speed service providers compared to 6.8% with none. “These types of regulations are not needed because either no specific consumer harms have yet been identified that may support a justification for imposing regulation on what the Commission has found to be a competitive broadband service market; or in a competitive market of this type, adequate consumer protection is either inherently provided or rendered meaningless,” USTelecom said.

CTIA told the Commission: “It is inappropriate at this time to impose burdensome regulations upon broadband providers.” While the Commission should avoid imposing requirements for network security, or on slamming, cramming or network outage reporting, the FCC can take positive steps that will promote wireless broadband deployment, the association said. CTIA said wireless broadband rollouts are occurring at a rapid pace, led by Verizon Wireless’s and Cingular’s multi-city 3G deployments.

“In particular, the Commission should eliminate inequities and inefficiencies in the universal service and intercarrier compensation systems,” CTIA said: “The Commission also should ensure that wireless carriers have the advanced wireless services spectrum they need to deploy mobile broadband services, and the Commission should modify its technical rules to ensure they do not discourage deployment of wideband technologies.”

AT&T said that the FCC shouldn’t focus its attention solely on facilities-based carriers like the ILECs. “Rather, the Commission should keep a watchful eye on all providers of broadband-based services and applications that impact consumers’ Internet access experiences,” AT&T said: “To the extent the Commission finds a market failure, it should act swiftly and decisively to remedy the problem, either on its own or by referring the matter to the Federal Trade Commission if the problem would be more appropriately addressed through that agency’s jurisdiction.”

NARUC said the FCC shouldn’t take steps to limit the ability of state commissions in their oversight of broadband competition. “While federal standards provide a useful baseline for regulations in areas involving established abuses, broad preemption would leave consumers with untenable choices when new abuses arise,” NARUC said. “Even in established areas, federal rules should recognize that novel issues and related abuses will arise and build in flexibility to allow states to act.”