Verizon-Incompas special access proposal gets support from state and local groups

Verizon and Incompas’ joint business data services (BDS) proposal has gotten the support of several state and local trade associations which say it will enhance network investment and provide greater choice to businesses and non-profit organizations. The letter was signed by the Midwest Association of Competitive Communications, CALTEL, Michigan Internet & Telecommunications Alliance, Northwest Telecommunications Association, and CompSouth.

“The beneficial effects of BDS reform will reverberate throughout the economy,” said the group of organizations. “Competitive wireline and wireless providers will be able to invest more in their own networks and innovative products and services, benefitting customers and competition throughout their communities. Indeed, one study shows that the spill-over effects of price reductions in the broader economy are substantial and an annual boost to GDP 2.6 times as great as the direct reduction in prices.” The group said that it agrees with the Verizon-Incompas proposal that implementing a “competitive market test using three bandwidth tiers is appropriate” because “it recognizes where it makes economic sense for competitors to build and where it doesn’t.” Additionally, the trade groups said that by implementing a 15 percent price cap reduction for TDM, the FCC can achieve its goals to ensure greater competition in the BDS market.