ILECs, CLECs May Get Special Access Deal, Consultant Says; CenturyLink Backs Idea

business data services (BDS) market," said a blog post by CCMI consultant Andy Regitsky, with clients in both camps. CenturyLink suggested an industry compromise would be desirable, but said it needed broad stakeholder participation. Others didn't comment. Major ILECs and cable companies have "in public been adamantly opposed" to an Incompas/Verizon BDS proposal (see 1608050055), "but we know that there have been discussions on whether this framework could actually be the basis for an industry-wide agreement," wrote Regitsky. With special access revenue "significantly declining each year," if ILECs determine it's not "worth fighting over a rapidly diminished special access pie they could support a deal, especially if the annual forced price reduction through a productivity factor is low enough to have a de minimis impact on their overall revenues," he said. "ILECs would much rather concentrate on their Ethernet offerings where they face much more competition than for special access. If as part of the deal their cable competitors face price regulation for the first time, so much the better." It's "a lot harder to see what benefits, if any a proposed deal would have for cable companies," wrote Regitsky. CenturyLink emailed: “In years past, the industry has had some remarkable successes in working out reasonable solutions for some highly complex regulatory issues. CenturyLink has played an active role in many of those discussions. We agree with the concept of negotiating to achieve a common goal. However, in the case of special access, to be truly representative and thorough, it is best that as many stakeholders as possible participate in those discussions to achieve a balanced outcome.” NCTA agrees with Regitsky's "assessment that it makes no economic sense to regulate cable operators," said a spokesman.