WASHINGTON-The long-awaited rules governing telecommunications competition are a good-news/bad-news story for the wireless industry.
The good news is that the Federal Communications Commission said mobile-phone carriers can have access to unbundled network elements-necessary pieces of the telephone network controlled by incumbent local exchange carriers. The bad news is that certain types of transport were taken off the list of available elements, and transport is the element wireless carriers use the most.
“While we are still reviewing the 576-page order, we applaud the FCC for recognizing that wireless carriers are true competitors to incumbent LECs and will have access to UNEs as a tool to help consumers cut the cord,” said Douglas Brandon, vice president of external affairs for AT&T Wireless Services Inc.
AT&T Wireless led the charge to have the FCC declare that ILECs are required to charge wireless carriers the same amount they charge landline competitors instead of the “special access charge” they currently charge. Sprint PCS estimated that special access charges are double that of “Telric” pricing-the regulated price ILECs must charge competitive local exchange carriers.
Sprint Corp. saw the glass as half empty for wireless carriers. “One element of the FCC’s order that is disappointing to Sprint is the apparent decision to preclude wireless companies from purchasing transport from ILECs at UNE prices. The commission has been increasingly viewing wireless companies as providing competitive local access to incumbent wireline companies and has begun to add more wireless regulation as a result. However, in this case, the FCC is denying wireless companies competitive access to incumbents’ networks at rates that reflect the incumbents’ cost. Sprint views this apparent decision as a mistake that hinders competition,” said Tom Gerke, Sprint executive vice president of external affairs and general counsel.
The FCC voted on the rules in February in a split decision but only Thursday actually released the details. While the official vote was 3-2 with FCC Commissioner Kevin Martin leading the majority and his fellow Republicans FCC Chairman Michael Powell and FCC Commissioner Kathleen Abernathy dissenting, only Martin voted for the item, which contains more than 2,000 footnotes, in its entirety. FCC Commissioners Michael Copps and Jonathan Adelstein, while agreeing with Martin on the basic framework, objected to specific portions.
It is unlikely this battle is over. Now comes the opportunity for telecommunications interests from all sides to urge the FCC to reconsider the decision and/or to appeal the decision to the U.S. Court of Appeals for the District of Columbia Circuit.
