Major Changes in the Works on the Business Data Services (a/k/a Special Access Services) Front

[Commentary] The market for special access service – also known by some (including the Federal Communications Commission) as “business data services” or “BDS” – is under the Commission’s regulatory microscope. In a sprawling, two-pronged decision, the FCC has (a) ordered the four largest BDS providers (among incumbent local exchange carriers, a/k/a ILECs) to revise their tariffs in significant respects and (b) proposed a new regulatory regime for BDS. The massive 288-page “Tariff Investigation Order and Further Notice of Proposed Rulemaking” arises from complaints raised by competitive local exchange carriers (CLECs) and other customers of special access service.

The FCC also requests comment on the appropriate treatment under the new framework of the three types of contractual terms identified in the Tariff Investigation Order, as well as other contractual terms and conditions.