Apr 13, 2018 10:00:00 AM
Last month we discussed the fact that the FCC's proposal to remove most of the "waste, fraud and abuse" in the Lifeline program by limiting support to facilities-based providers was trashed by almost the entire industry. That is because the estimated 70 percent of Lifeline customers that participate in the program through resellers (many of them wireless providers) would have no other options available to them, or have their prices increase if they are forced to purchase service from providers who own facilities-based networks.
Apr 6, 2018 10:00:00 AM
It has been almost five years since the FCC began to systematically address the troubling inability consumers and businesses have completing calls to rural areas. These problems manifest themselves in various ways, including calls that are significantly delayed, no ring on the called party’s phone, or the caller hearing false ring tones or busy signals.
Mar 30, 2018 10:00:00 AM
Last year the FCC determined that price cap ILEC special access and packet services should be almost entirely deregulated with only DS1 and DS3 transport subject to price cap regulation if the ILEC failed a highly criticized "competitive" market test. This regulatory scheme became effective on August 1, 2017 when the Business Data Services (BDS) Order took effect.
That Order put many rate-of-return (ROR) ILECs in a unique position. More than 200 ROR ILECs now receive universal service support based on a cost model called the Alternative Connect America Fund Cost Model (ACAM). In return for a fixed amount of support, these ILECs are required to meet a specified level of broadband deployment. This method to recover Connect America Fund (CAF) dollars has become very popular among ROR carriers. However, as a result, these LECS are no longer in the NECA Common Line Pool and remain subject to rate regulation only for their special access services. Some parties sought to change that.
Mar 23, 2018 10:00:00 AM
Last year's ILEC Annual Access Filings brought a lot of confusion to the industry. It was Year 6 in the transition to bill –and-keep for most terminating switched access charges, and it was an important step for the tandem-switched transport rates of price cap ILECs.
According to part 51.907(g)(2) of the FCC's rules, effective July 1, 2017, price cap ILECs were required to:
Establish, for interstate and intrastate terminating traffic traversing a tandem switch that the terminating carrier or its affiliates owns, Tandem-Switched Transport Access Service rates no greater than $0.0007 per minute.
Mar 16, 2018 10:00:00 AM
It has been a frustrating few weeks for those of us who want to put the issue of Internet regulation behind us. On February 22, 2018 the Restoring Internet Freedom Order was finally published in the Federal Register. While that would normally provide an effective date for the Order, it did not, because the FCC is still waiting for final approval from the Office of Management and Budget (OMB) which could take several more months.
The Federal Register publication did allow parties to file appeals of the Order and many were filed by states, consumer groups, and tech companies. Appeals were filed in several courts, with the Ninth Circuit Court in San Francisco set to hear the case after winning a random draw. All the appeals have been consolidated into one, and a schedule to hear the case is pending.
Mar 9, 2018 10:00:00 AM
I admit it, I admire Ajit Pai. The FCC Chairman speaks and writes brilliantly, can charm any crowd and is steadfast in his belief that telecom regulation is harmful even while facing incredible public pressure, and sadly, even death threats.
However, after observing Pai for several years now, it is obvious he is his own worst enemy. His attempts to move directly from point A to point Z on every issue, infuriate the industry, while a compromise at point P would have enabled him to reach most of his goals without the public angst.
For example, he could have eliminated the most troublesome aspect of net neutrality by simply reclassifying broadband Internet access as an information service. However, he went too far by eliminating the "bright line" rules forbidding blocking, throttling and paid prioritization of Internet traffic.
Mar 5, 2018 10:00:00 AM
As we move into 2018, there are a number of things we think our clients and other enterprise telecom/IT users should look forward to (or gird themselves for) this year. Telecom and IT are always changing, but this year could be one for the record books. Here are ten developments that may impact enterprise customers (in no particular order):
1. Effect on enterprise customers of the acquisitions of Level 3 by CenturyLink and of XO by Verizon
Two major acquisitions closed in 2017 that will have ripple effects for enterprise users this year: Verizon acquired XO Communications, and CenturyLink acquired Level 3. Besides the removal of two competitors from the market – which reduces enterprise users’ choices and inevitably leads to higher prices – both corporate takeovers have less obvious impacts on the market and enterprise buyers. On the flip side, as with many mergers, both Verizon and CenturyLink stand to save money – in Verizon’s case, an estimated $1.5 billion, and in CenturyLink’s case, some $975 million annually – due to efficiencies resulting from the consolidations. That probably means layoffs, but it is unlikely to translate into lower rates or better service for enterprise users.
Mar 2, 2018 10:09:02 AM
In a February 26, 2018 Opinion, the full Ninth Circuit Court in San Francisco gave the Federal Trade Commission (FTC) a huge victory when it found that a company is regulated as if it were a common carrier based on a specific "activity" rather than by "status." In other words, a non-common carrier cannot become a common carrier and escape FTC regulation for its non-common carrier services simply by providing a single common carrier service. Instead, as per usual, its common carrier services would be regulated by the FCC, but its non-common carrier services would fall under FTC authority.
The significance of this is clear. The non-common carrier services such as broadband Internet access service provided by ISPs like AT&T and Verizon will be regulated under section 5 of the FTC rules, as the FCC envisioned in its recently released Restoring Internet Freedom Order.
Here is the background for this important Opinion.
Topics: CLECs, FCC, ILECs, switched access, service providers, bill-and-keep, wireless, inter-carrier compensation, terminating traffic, direct connections, wireless carriers, small providers, Inteliquent, wholesale traffic, AT&T, clec, terminating access charges, IXC
Feb 28, 2018 9:15:00 AM
Competitively sourcing your network infrastructure services can be regarded as something to be avoided. Conducting a competitive Request for Proposal (“RFP”) process can be complicated and time consuming, all when the normal day job already keeps you far busier that you want to be. Furthermore, a prevailing view can evolve that the benefits from changing vendor as a result of an RFP will never be large enough to overcome the cost, effort and heightened operational risk of executing the vendor change. And regardless, your existing vendors always seem to give you a good deal when you extend their contracts, award them additional business, or conduct the annual benchmarking process…
But all of that misses the real value of RFP processes. RFPs are change agents – the change delivered may be a change of vendor, a change of technology, a step change in cost/pricing, or some or all of those combined. But without engaging the market, achieving transformational change and improvements in capabilities and performance is much harder to achieve, and realizing true step changes in the competitiveness of the pricing for the services you consume simply doesn’t happen.
Topics: Network Services Procurement, RFP, network services, competitive sourcing, RFPs, networking deals, RFP documents, Ben Fox, TC2, Telecom Summit, infrastructure deals, vendor proposals, stakeholder management
Feb 23, 2018 10:00:00 AM
Industry comments are due on March 14, 2018, involving one of the weirdest filings to come before the FCC in a long time. In a Petition for Expedited Declaratory Ruling (Petition) filed by South Dakota Networks (SDN) on February 7, 2018 in Docket 18-41, SDN requests the Commission to issue a declaratory ruling asserting that in a dispute between it and Northern Valley Communications, Inc. (NVC) involving interstate switched access traffic:
A contract between SDN and AT&T, negotiated to terminate large volumes of traffic originally bound to a CLEC (NVC) engaged in access stimulation is lawful; and,CLECs, such as NVC, enjoy no exclusive right to transport terminating traffic to their end offices (or elsewhere). Moreover, the filing of a federal tariff by a CLEC, does not confer a right to compel other carriers to use the tariffed services.
Topics: CLECs, FCC, ILECs, switched access, service providers, bill-and-keep, wireless, inter-carrier compensation, terminating switched access, terminating traffic, direct connections, wireless carriers, small providers, Inteliquent, wholesale traffic, AT&T, clec, terminating access charges, IXC, federal tariff