Business Data Service Reform: A No-Brainer for Both Businesses and Consumers

After a proceeding that has stretched on for more than a decade, the Federal Communications Commission’s largest ever data collection, and numerous delays, the fight over business data services (BDS) reform (previously referred to as “special access” reform) could be nearing its end. FCC Chairman Tom Wheeler has repeatedly promised the FCC is finally set to reform the BDS market this year by lowering the rates that monopoly phone companies can charge to businesses, institutions, and wireless carriers, and promoting new competition and market entry. In Sept, Public Knowledge, along with other public interest and consumer advocates sent a letter to Congress urging Members to support the FCC’s effort in making the BDS market more competitive. Oct 4, we joined 11 other public interest and consumer advocates in a letter to the FCC.

Crucially, BDS reform must address excessive pricing for both legacy TDM services and high-capacity Ethernet services. Failure to address monopoly Ethernet pricing only preserves incumbent carrier monopoly pricing and green lights anti-competitive behavior in the future. Even with a wealth of information indicating that the BDS market is broken and controlled by monopoly telecom providers, opponents are still fighting to delay or kill the common sense reforms that business customers, consumers, wireless carriers, and the vast majority of the telecom industry have coalesced around. Opponents of BDS reform are using the only tool in their arsenal – calling for more delay and questioning the FCC’s process. These are losing arguments, and tired tactics. The evidence overwhelmingly shows there are only one or two BDS providers in a majority of customer locations. The FCC must act now to create much needed incentives for competition in the BDS market while protecting consumers and promoting economic growth. For too long, businesses and consumers have been hurt by exorbitant rates while BDS providers have seen windfall profits. It’s not often that both businesses and consumers benefit from new regulations, but in this case, BDS reform is a no-brainer for both sides.