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FCC Proposes Special Access Incentive Regulation for Rate-Of-Return ILECs

Posted by Andrew Regitsky

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.

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Topics: ILECs, FCC, CLECs, commissions order, federal trade commission, Business Data Services, clec, regulatory updates, rate of return

FCC Settles Price Cap ILEC Tandem Transport Access Issue

Posted by Andrew Regitsky

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.

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Topics: ILECs, FCC, CLECs, commissions order, federal trade commission

FCC Claims It Has "Fixed" Broadband Deployment Issues

Posted by Andrew Regitsky

Feb 9, 2018 9:45:00 AM

Section 706 of the Telecommunications Act requires the FCC to determine and report annually on “whether advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion.” The Commission began this year's determination last August when it released a Notice of Inquiry (NOI) in Docket 17-199. That NOI received a tremendous amount of negative industry attention when the Commission made three controversial proposals:

First, the Commission proposed to make the availability of either fixed or mobile broadband in an area sufficient to meet the requirement that broadband is available;

Second, the Commission proposed to continue the current speed benchmark of 25 Mbps download, 3 Mbps upload (25 Mbps/3 Mbps) for fixed broadband, while establishing for the first time a mobile speed benchmark of 10 Mbps/1 Mbps.

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Topics: CCMI, FCC, ISPs, CRA, Open Internet, congress, congressional review, commissions order, internet freedom order, internet freedom, Broadband, broadband deployment advisory committee, wireless broadband, broadband report, telecommunications act, broadband deployment

California Issues Net Neutrality Challenge to FCC

Posted by Andrew Regitsky

Feb 2, 2018 9:44:00 AM

In a recent CCMI webinar I stated that the worst possible outcome for Internet regulation for the country would be for each of the 50 states to legislate their own net neutrality rules in opposition to the FCC's Internet Freedom Order, while Congress sits on its hands and does nothing. Unfortunately, more and more, that seems to be the likely outcome.

Already, within the last couple of weeks, 21 states and the District of Columbia have appealed the Order to the Federal courts while New York and Montana have introduced bills that would bar state agencies from contracted with ISPs unless they agreed to comply with the "bright line" net neutrality rules.

While it could be argued that the proposed legislation in those states does not directly challenge the Commission's Order (I'm sure the FCC thinks otherwise), the same cannot be said about the bill recently passed by the California Senate. SB-460, contains provisions that directly conflict with the Commission's removal of the bright line rules.

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Topics: CCMI, FCC, Net Neutrality, net neutrality order, internet freedom order, trump, ISPs, CRA, internet freedom, internet regulation, Open Internet, SB-460, california, california senate, congress, congressional review, supreme court, commissions order

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