NCTA Offers BDS Framework as Critics Hit Verizon/Incompas, Other Proposals

applied only to legacy BDS rates in census tracts having a single BDS-capable facilities provider, fewer than 10 BDS customers, and no customers buying fiber-based Ethernet services. "Rates for TDM services in these noncompetitive tracts would be regulated under the existing price cap regime, and should account for higher costs," said an NCTA filing to be posted in docket 16-143. "Regulation would sunset in 2025 if at least one provider offers Ethernet services in the census tract at that time. The Commission also should adopt an expedited complaint process." Incompas emailed that its proposals with Verizon open "a race to the future, filled with lower prices, competition and investment. These are all things NCTA opposes, so it’s not surprising to see them propose a flawed framework that favors monopoly and duopoly control." Level 3 said NCTA ignored "overwhelming evidence" that BDS competition is often lacking. “NCTA would have the Commission adopt, once again, a framework for deregulation that relies on imaginary potential competition rather than actual evidence, just a few short years after the Commission finally abandoned its failed 'pricing flexibility triggers' framework, perhaps the most notable characteristic of which was its similarity to the NCTA proposal," Level 3 emailed . But NCTA and others cited seven economists who said they were troubled by proposals to "impose widespread rate regulation in all markets" that don't have at least three or four BDS providers. The commission should adopt "a competitive market test targeted squarely at combating supracompetitive rents in entrenched monopoly markets, rather than regulating markets with multiple facilities-based competitors present," said a letter to be posted from Joseph Farrell, professor emeritus at the University of California, Berkley; Michael Katz, a UC-Berkley professor; and others. The Communications Workers of America said it's "deeply concerned" the FCC is considering an Incompas/Verizon BDS framework that could cause a "20 percent (or higher) flash cut in rates," reducing provider annual revenue by $1.4 billion, as estimated by an economist. "Drastic" BDS rate cuts "would lead to reduced investment in broadband networks -- especially in rural areas -- and downward pressure on jobs and living standards," said the letter from CWA President Christopher Shelton to be posted. The Competitive Carriers Association called for "immediate BDS reform, particularly as mobile carriers work to densify their networks" to prepare for 5G. The FCC should "adopt a presumption that low-capacity BDS are not competitive and apply a competitive market test to high-capacity BDS above-50 or -100 Mbps," said a CCA filing on a meeting (see 1609140028) with Commissioner Jessica Rosenworcel and an aide. Alaska Communications discussed the "unique characteristics of the BDS market in Alaska" with commissioner aides, said another filing.