Reforming the Most Important Part of the Telecommunications Business You Probably Don't Know About

Last week, Federal Communications Commission Chairman Tom Wheeler circulated a proposed update of the FCC’s Business Data Services (BDS) rules. BDS, traditionally referred to as “special access,” are dedicated network connections that support services like ATMs, credit-card readers, and mobile phone service. BDS carry the massive flows of data exchanged by small businesses, industry, and institutions like hospitals, schools and universities, and provide essential infrastructure to support wireless innovation, including the next generation of mobile services called 5G. The new proposal, if adopted, would reform the $45 billion-a-year market and update legacy rules governing incumbent telephone companies (ILECs) designed to address the artificially high prices charged to small businesses, schools, libraries, and, ultimately, consumers.