Broadband Maps Faulty, CLECs Say; Cable Facilities Cite Competition, Say ILECs
Interests representing ILECs and competitive LECs pressed opposing sides in replies mainly posted Wednesday in FCC docket 18-141 on a USTelecom petition for forbearance from selling unbundled network elements (UNEs) to competing telcos (see 1905140012). Incompas argued the Wireline Bureau "should not rely on unreliable data" in current broadband coverage maps (see 1905230043) in deciding, and that USTelecom "attempts to use the predictions of eventual competition made over two years ago to substitute for proof of actual competition today." Incompas said USTelecom hasn't met the burden of proof under forbearance procedures to demonstrate competitors are providing fiber in significant quantity to justify relief to ILECs from selling UNEs.
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Access to unbundled loops and transport helps CLECs build customer bases and then deploy their own fiber networks, sometimes in markets unserved by others, Incompas said. It cited member telcos in the California counties of San Bernardino, Kern, Santa Barbara and San Luis Obispo that have no competing broadband provider even though the counties were deemed competitive in business data services order data submitted by USTelecom.
CenturyLink believes Incompas is overstating the significance of UNEs "based on anecdotal narratives." AT&T said there's no "verifiable evidence that there is a large number of such locations" where a CLEC using UNEs is the only available broadband provider, and Incompas had no economic analysis showing why CLECs couldn't use UNE substitutes to provide broadband offerings if the FCC grants forbearance. AT&T said in many areas "CLECs can economically deploy their own facilities." It doubted any CLEC will discontinue a broadband offering due to forbearance.
USTelecom noted some CLECs have deployed transport networks that could or do bypass ILEC transport. The association continues to argue ILECs face substantial competition from cable companies from their network facilities. Frontier Communications suggests CLECs should no longer be viewed as the primary market competitor to ILECs, but over time "technological change has shown that cable and wireless have emerged as robust competitors, with cable companies becoming the dominant fixed broadband providers and wireless companies the dominant voice providers." It said CLECs shouldn't expect their competitors to resell their facilities at below market rates.
Granite Communications and its partner CLECs said "USTelecom has not met its burden of proof. The company said "ILECs continue to rely on misleading statistics" about the sale of voice services in the aggregate. It said there's still a market for traditional TDM voice service via copper loops apart from VoIP services. Sonic Telecom said access to UNE dark fiber and DS0 loops "remains invaluable as a bridge to deploy fiber, as Sonic's own business model demonstrates. ... UNEs enable competition and connectivity options for consumers and incentivize the continued deployment of fiber infrastructure by incumbents and competitors alike."
Verizon said there's enough evidence to support the petition for forbearance from transport and dark fiber UNE regulations. It said the FCC should at least "grant forbearance from these regulations in areas where competition unquestionably exists."
The petition would be deemed granted absent FCC action by Aug. 2.