FCC eases some broadband rules on AT&T

FCC EASES SOME BROADBAND RULES ON AT&T
[SOURCE: Reuters, AUTHOR: Peter Kaplan]
The Federal Communications Commission voted late on Thursday to lift some regulations on AT&T's broadband business. A divided FCC partially granted AT&T's request to relax rules that govern what the company can charge business customers and rivals for access to some of the its high-speed Internet lines. The FCC action will eliminate a key requirement that AT&T file tariffs with the agency disclosing the rates it charges businesses and rivals for high-speed access. However, Commissioner Robert McDowell said the agency had left other key regulations in place and created a new process for handling complaints about the rates AT&T charges for access. The decision came shortly before a midnight deadline to act on AT&T's request. While the three Republicans on the commission voted in favor of it, the two Democratic commissioners dissented. Commissioners Michael Copps and Jonathan Adelstein, said there was not enough evidence of competition to support AT&T's request. To the contrary, they cited indications that the market for high-speed access was "anything but competitive." David Kaut, an analyst with Stifel Nicolaus, said removing the tariff rules would give AT&T a leg up in negotiations with rivals and business customers seeking to lease access.
http://www.reuters.com/article/internetNews/idUSN1140974620071012

* FCC Grants AT&T Forbearance: http://www.fcc.gov/101207/FCC-07-180A1.pdf

* FCC Chairman Martin: "The relief afforded to AT&T is consistent with and similar to the relief provided in Commission decisions regarding broadband services, packet switching, and fiber facilities. In those decisions, the Commission determined to relax regulations where
competition was significant and where regulations acted as a disincentive to deploy new
broadband technologies. Accordingly, based on the specific market facts that have been
placed before us, we are compelled under the “pro-competitive, deregulatory” framework
established by Congress, as well as under section 10’s forbearance criteria, to grant
AT&T relief from the continued application of legacy regulations."
http://www.fcc.gov/101207/FCC-07-180A2.pdf

* Copps & Adelstein Joint Statement: "We find the evidence to support forbearance here
altogether underwhelming."
http://www.fcc.gov/101207/FCC-07-180A3.pdf

* Tate Statement: "While it can be beneficial to eliminate regulation when appropriate, this decision takes a carefully balanced approach, providing regulatory relief where appropriate, allowing these carriers to respond to marketplace demands efficiently and effectively, but ensuring that less intrusive or less costly regulation remains that protects consumer interests and competition."
http://www.fcc.gov/101207/FCC-07-180A4.pdf

* McDowell Statement: "As competition in the broadband market continues to grow, especially through the deployment of new wireless technologies, less regulation should be required. However, many parties allege that competition in the special access market is uneven and is limited to certain urban areas, thus creating supply bottlenecks that favor incumbent local
exchange carriers in the business broadband and wireless markets. Despite requests for
better data to help us resolve disputes of these material facts, the Commission still has
inadequate information to determine whether allegations that competition is scarce in certain segments of the special access market have merit."
http://www.fcc.gov/101207/FCC-07-180A5.pdf