Special Access Rules Don’t Need Revision, Martin Tells Markey
FCC commissioners will seek public comment before they decide whether to revise special access pricing rules, FCC Chmn. Martin told House Telecom Subcommittee Chmn. Markey (D- Mass.) in a June 11 letter released Wed, by the House. Markey in May requested the Commission’s views on revisiting special access rules given their possible impact on wireless carriers competing for spectrum in the coming 700 MHz auction. Markey voiced concern that special access prices were too high and the market too concentrated to encourage competition.
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Martin said he personally doubts revision is necessary. But he recently polled other Commissioners to determine how they want to handle the proceeding (CD May 24 p1), he said. The effort is the result of AT&T’s 2-year-old petition for more regulation of the private line services used by wireline competitors, large customers and wireless providers.
A majority of commissioners want more comment before acting on the rules, Martin told Markey. He said he recently asked his staff to circulate a draft public notice that would seek those comments, he told Markey: “To the extent a majority wants to move forward to revise the special access pricing rules by September 15, 2007, I am recommending an expedited comment and reply comment cycle.” Markey had asked the agency to consider action by Sept. 15.
Letters to Markey from other commissioners hinted at their stances on the issue: Comrs. Copps and Adelstein not surprisingly were the strongest advocates for revising the rules once new comments are taken. Comr. McDowell was fairly noncommittal, saying he backs “a brief refreshing of the special access docket.” Comr. Tate said “it would be prudent to refresh the record in order to ensure that we have the best information available before reaching a decision.”
AT&T asked the agency to roll back a 1999 decision to lessen special access price regulation. The FCC in 2005 turned down AT&T’s request, agreeing to open a notice of proposed rulemaking to decide what regulatory framework to use in the future. Martin he sees little reason for more rules because “special access performance measures are now in place in all three Bell regions.” But it makes sense to refresh the record to reflect the “significant market changes and Commission decisions” occurring the past 2 years, he said.
Martin’s letter to Markey indicated concern over data GAO used as a basis for a Nov. report questioning special access pricing: “I have asked Commission staff to request access to all the data used by GAO to develop its conclusions… and to perform the Commission’s own analysis of the reliability and validity of the GAO findings.” Markey cited the GAO report in explaining his concern about high prices and “significant concentration in the special access market.”
The agency’s plan to examine special access pricing the next 3 months “is tentative good news for independent wireless carriers, such as Sprint Nextel, T-Mobile and Alltel,” as well as CLECs and others using special access services, Stifel Nicolaus said. But it’s “of some concern” to special access providers such as the Bells, the analysts said. “The record will demonstrate the critical need to impose pricing discipline on the monopoly special access market, particularly as carriers seek to provide competitive broadband services,” a Sprint Nextel spokesman said.