Special Access Fight Brewing

Industry stakeholders are lining up in support of or opposition to changes to special access price methodology proposed this week by Federal Communications Commission Chairman Julius Genachowski.

Currently large incumbent carriers have considerable flexibility in how they price special access circuits, which are used by competitive carriers, wireless network operators, and enterprise customers as well as smaller incumbent carriers. But according to news reports, the FCC is considering new limitations on what the carriers can charge – or at least restricting the extent of carriers’ pricing flexibility. Competitive carriers have been particularly vocal in their opposition to today’s system and at least two competitive carrier organizations this week voiced partial support for Genachowski’s actions. “Pricing flexibility triggers have resulted in unreasonable rates and unjustifiable rate increases,” said The Broadband Coalition, a competitive coalition whose agenda includes special access reform, in a statement. “We applaud the FCC for taking this step and hope it leads to broader reforms in this area.” Comptel issued a similar statement. But opponents of special access reform, including AT&T Vice President of Federal Regulatory Bob Quinn, argued just the opposite.