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.
Jan 5, 2018 10:00:00 AM
Happy New Year! 2018 is set to be the most unusual year ever for the telecom industry. In every other year I can remember, there were a set of issues everyone knew the FCC was likely to grapple with. Last year with a brand new conservative Commission it was obvious that Chairman Ajit Pai was going to reverse the 2015 net neutrality rules, eliminate one-sided ISP privacy rules (with the help of Congress) and deregulate ILEC special access services. In addition, the Commission improved the pole attachment rules, modified the Lifeline program and began looking at additional switched access reform. It was easy to criticize the FCC for many of its actions, but no one could accuse the FCC of inaction, even when they had less than a full complement of five commissioners.
Topics: regulatory updates, FCC, ILECs, Net Neutrality, Open Internet, internet regulation, open internet order, federal trade commission, internet freedom, CCMI, ajit pai, ftc, litigation, internet freedom order, open internet preservation act, congress
Dec 22, 2017 10:00:00 AM
I know this may sound strange to you young guys and gals out there, but at one time I was a big fan of the FCC. I admired the way commissioners of both parties put aside their obvious political differences to work together for the betterment of the American people.
The Commission's success stories are numerous, including developing a universal service program that made telephone service affordable for virtually all Americans, implementing the requirements of the 1996 Telecom Act to break up the Bell companies and establish competition in both the local and long-distance markets, and establishing harmonious relationships with state public utility commissions to protect individuals and companies.
Dec 15, 2017 10:00:00 AM
There is no question that FCC Chairman Ajit Pai is feeling the heat for his agency voting 3-2 to eliminate the 2015 net neutrality rules. The new "Light Regulation" or as some would call "No Regulation" Internet Order ("Order) is scheduled to become effective early next year unless stayed by a court (more about that later).
We know Pai is under the gun because earlier this week his FCC issued a draft Memorandum of Understanding (MOU) explaining how the Commission will work jointly with the Federal Trade Commission (FTC) to protect consumers on a case-by-case basis when a complaint is filed against an ISP. The MOU will become effective on the effective date of the Order
Before we discuss why we believe the MOU to be virtually useless, here are some of its key points:
Dec 1, 2017 10:00:00 AM
On the eve of the Thanksgiving holiday, the FCC decided to give ISPs an early Christmas present when it made public a draft "Internet Freedom" Declaratory Ruling, Report and Order, and Order ("Internet Freedom Order") it intends to vote into law on December 14, 2017. The Internet Freedom Order would completely overturn the FCC's 2015 Open Internet Order and turn over almost all regulatory authority over the Internet to the Federal Trade Commission (FTC). Here is a summary of the key points of the draft Order and its implications: