WASHINGTON-The Federal Communications Commission will decide next month whether mid-sized incumbent local exchange carriers must continue to have a separate subsidiary to offer wireless services. An association representing mid-sized companies wants the FCC to stop enforcing the rule.
The request by the Independent Telephone and Telecommunications Alliance is part of a broad forbearance petition filed on Feb. 17, 1998. The FCC must rule on the petition by May 18.
Congress established procedures in the Telecommunications Act of 1996 that allow entities to ask the FCC to stop enforcing rules that have become moot because of competition. The procedures require the FCC to rule on such requests within one year, but gives the agency the option of a 90-day extension if necessary.
To help regulators distinguish ITTA’s 13 member companies from the regional Bell operating companies, GTE Corp. and small ILECs, ITTA last week released a study that shows how mid-sized companies operate more like small companies than their larger counterparts. For the most part, however, mid-sized companies are regulated as big companies.
“The study demonstrates the unique characteristics and strengths that distinguish mid-sized companies from large companies,” said David Zesiger, ITTA executive director.
The information in the study will need to be reviewed by at least two different bureaus at the FCC if ITTA hopes to be successful. The FCC’s Common Carrier Bureau is leading the FCC’s efforts on most of the ITTA forbearance petition, but the issue of separate wireless subsidiaries is being handled by the FCC’s Wireless Telecommunications Bureau.
The study compared 89 variables using data from all of the RBOCs, GTE, Sprint Corp.’s local exchange service, ITTA’s members and a sampling of 32 small companies.
ITTA hopes the study by David C. Blessing of Parish, Blessing and Associates, will give regulators the statistical data necessary to rule favorably on its nine forbearance requests. The requests include the separate subsidiary requirements for both wireless and long distance, and various reporting and filing requirements.
Up to now, data has been lacking to prove mid-sized companies are different, said Blessing.
