One broadband choice still counts as “competition” after court decision on Business Data Services

A Federal Communications Commission decision to eliminate price caps in much of the business broadband market can remain in place after a federal judge denied a petition to halt the FCC order. The FCC's Republican majority in April imposed a new standard that deems certain local markets competitive even when they have only one broadband provider. In those markets, incumbent phone companies like AT&T, Verizon, and CenturyLink will be able to charge higher prices for business data services that are delivered over copper-based TDM networks. Companies that will have to pay higher prices sued the FCC. They asked for a stay that would halt the elimination of price caps pending the outcome of the case.

But Aug 7, the US Court of Appeals for the 8th Circuit denied the motion for stay. The order provided no explanation for the denial. The FCC's decision eliminates price caps in a county if 50 percent of potential customers "are within a half-mile of a location served by a competitive provider." A county is now also considered competitive if 75 percent of Census blocks have a cable provider. (There are no price caps for cable-based business data services.)