Extend AT&T accounting-rule forbearance to all price-cap carriers...

extend forbearance to Qwest and Verizon. The carriers want relief from cost- assignment rules requiring incumbent carriers to keep records that, among other tasks, separate interstate and intrastate costs. If the FCC extends forbearance to the Bells, it likely will apply it to smaller price-cap carriers as well, said a lawyer close to the proceeding. None of the carriers has filed formal forbearance petitions, but Section 403 of the Communications Act authorizes the FCC to act on its own motion, he said. Forbearance foes say Qwest, Verizon and other carriers shouldn’t get relief because, unlike AT&T, they are rate-of-return regulated at the state level. That logic is unlikely to sway the FCC, which probably will focus on the federal level, the lawyer said. The FCC likely will answer the Qwest-Verizon request before addressing a reconsideration petition by Sprint Nextel, competitive local exchange carriers and others challenging the AT&T order, the lawyer said. The FCC usually makes ILEC requests a priority, he said. The FCC should act on the reconsideration petition first, a Sprint spokesman said. Extending forbearance to other carriers will only “compound” the FCC’s mistake in granting AT&T’s petition, he said. Sprint is focused on the reconsideration petition and so far doesn’t plan to go to court, as the National Association of State Utility Consumer Advocates has, he said. The AT&T order doesn’t take effect until the Wireline Bureau approves a compliance plan explaining how the Bell will continue maintaining accounting information that the FCC might request in the future. AT&T is expected to file the plan soon, the lawyer said.