Modern Regulations for 21st Century Communications Networks

In 1996, Congress required incumbent local exchange carriers (ILECs) to unbundle and resell portions of their networks to upstart companies at discounted and government-set rates. These network-sharing rules applied exclusively to ILECs in an era before there was substantial competition from facilities-based rivals. Twenty-three years later that expected competition is here. (ILEC’s share of residential local voice markets fell from nearly 100 percent to only 11 percent of US households by the end of 2018.) Yet, these old-school regulations remain in place. USTelecom has petitioned the Federal Communications Commission to phase out these outdated unbundling and resale requirements on providers, in favor of allowing the competitive and dynamic marketplace to set terms, a change that will reduce costs for consumers, create jobs and unlock new investment. If we are to meet the communications needs of this and future generations with the world’s most reliable broadband infrastructure, regulations and incentives must keep up with the lightning speed of technology and innovation.

[Jonathan Spalter is president and CEO of USTelecom – The Broadband Association.]