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At Urging of Competify Coalition of Telecom Competitors, FCC Launches Inquiry of Broadband Business Services

WASHINGTON, October 19, 2015 – The Federal Communications Commission on Friday announced that it had launched an investigation into the broadband pricing plans of local exchange carriers AT&T, CenturyLink, Frontier and Verizon Communications for so-called “special access services” of business data.

A coalition of competitive carriers and non-profit organizations dubbed Competify has been urging the inquiry, and praised Friday’s order by the agency’s Wireline Communications Bureau.

Competify_Illustration_09122015-e1442430516826

“The incumbents use inherently anticompetitive lock-up plans – which only an entity with immense market power could impose – to charge businesses and anchor institutions excessive access rates that harm competition, restrain the deployment of competitive facilities, and impede the transition to next-generation services,” according to a statement released by the group.

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WASHINGTON, October 19, 2015 – The Federal Communications Commission on Friday announced that it had launched an investigation into the broadband pricing plans of local exchange carriers AT&T, CenturyLink, Frontier and Verizon Communications for so-called “special access services” of business data.

A coalition of competitive carriers and non-profit organizations dubbed Competify has been urging the inquiry, and praised Friday’s order by the agency’s Wireline Communications Bureau.

“The incumbents use inherently anticompetitive lock-up plans – which only an entity with immense market power could impose – to charge businesses and anchor institutions excessive access rates that harm competition, restrain the deployment of competitive facilities, and impede the transition to next-generation services,” according to a statement released by the group.

Competify_Illustration_09122015-e1442430516826

 

 

 

 

 

 

 

 

 

 

 

 

Among the companies supporting the campaign include BT, Level 3, Sprint and  XO Communications, together with a range of non-profit organizations.

The US Telecommunications Association struck back. Said association president Walter McCormick: “At the very time the commission is expressing concern over the growing dominance of cable in the overall broadband marketplace, and acknowledging that burdensome legacy regulation of telecom companies is misdirecting investment and hindering competition, it launches an old-fashioned ‘tarriff’  investigation of the only competitors in the marketplace who are required to operate under last century’s antiquated rules.”

Specifically, according to the order launching the investigation, the inquiry concerns “only a subset of specialized telecommunications services that continue to operate under tariffs,” namely time-division multiplexed (TDM) business data services such as DS1 and DS3 channel terminations under dedicated copper-based circuits.

“While competitors continue to expand their market presence by building IP [internet protocol]-based facilities or extending purchased TDM based facilities to additional buildings, preliminary results from the Commission’s data collection show that incumbent LECs remain the sole facilities-based provider of TDM-based special access services to a majority of business locations that demand or are likely to demand business data services nationwide.”

Rep. Anna Eshoo, D-Calif., and Rep. Mike Doyle, D-Penn., applauded the FCC’s investigation “that major telecom companies in the U.S. have been stifling competition in the $40 billion a year market for special access.”

“For too long, companies that utilize special access service have alleged that these services are only offered with unreasonable conditions attached, aimed at driving competitors out of this space,” wrote the representatives.

Other articles on the inquiry and Comptetify:

The Hill: http://thehill.com/policy/technology/257227-four-companies-at-center-of-fcc-probe-into-special-access-market

Multichannel News: http://www.multichannel.com/news/fcc/competify-launches-broadband-competition-campaign/394429

Drew Clark is the Chairman of the Broadband Breakfast Club. He tracks the development of Gigabit Networks, broadband usage, the universal service fund and wireless policy @BroadbandCensus. He is also Of Counsel with the firm of Best Best & Krieger LLP, with offices in California and Washington, DC. He works with cities, special districts and private companies on planning, financing and coordinating efforts of the many partners necessary to construct broadband infrastructure and deploy “Smart City” applications. You can find him on LinkedIN and Twitter. The articles and posts on BroadbandBreakfast.com and affiliated social media are not legal advice or legal services, do not constitute the creation of an attorney-client privilege, and represent the views of their respective authors.

Drew Clark is the Editor and Publisher of BroadbandBreakfast.com and a nationally-respected telecommunications attorney at The CommLaw Group. He has closely tracked the trends in and mechanics of digital infrastructure for 20 years, and has helped fiber-based and fixed wireless providers navigate coverage, identify markets, broker infrastructure, and operate in the public right of way. The articles and posts on Broadband Breakfast and affiliated social media, including the BroadbandCensus Twitter feed, are not legal advice or legal services, do not constitute the creation of an attorney-client privilege, and represent the views of their respective authors.

FCC

Cable Group NCTA Says Deny Exclusive Multitenant Access, But Not Wiring, Agreements

NCTA said the FCC should deny exclusive access to these buildings, but not exclusive wiring agreements.

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Michael Powell, president and CEO of NCTA

WASHINGTON, September 8, 2021 – The internet and television association NCTA is suggesting that the Federal Communications Commission deny all broadband providers exclusive access to multitenant buildings, but to continue allowing exclusive wiring agreements.

On Tuesday, the FCC opened a new round of comments into its examination of competitive broadband options for residents of apartments, multi-tenant and office buildings.

In a Tuesday ex parte notice to the commission, which follows a formal meeting with agency staff on September 2, the NCTA said the record shows that deployment, competition, and consumer choice in multiple tenant environments “are strong,” and that the FCC can “promote even greater deployment and competition by prohibiting not just cable operators, other covered [multiple video programming distributors], and telecommunications carriers, but all broadband providers from entering into MTE exclusive access agreements.

The organization, whose member companies include Comcast, Cox Communications and Charter Communications, also said it should continue to allow providers to enter into exclusive wiring agreements with MTE owners. Wiring just means that the provider can lay down its cables, like fiber, to connect residents.

“Exclusive wiring agreements do not deny new entrants access to MTEs. Rather, exclusive wiring agreements are pro-competitive and help ensure that state-of-the-art wiring will be deployed in MTEs to the benefit of consumers.”

The NCTA also told the FCC that there would be technical problems with simultaneous sharing of building wires by different providers and vouched for exclusive marketing arrangements, according to the notice.

The FCC’s new round of comments comes after a bill, introduced on July 30 by Rep. Yvette Clarke, D-New York, outlined plans to address exclusivity agreements between residential units and service providers, which sees providers lock out other carriers from buildings and leaving residents with only one option for internet.

Reached for comment on the filing, a spokesman for NCTA said they had nothing to add to the filing, which was signed by Mary Beth Murphy, deputy general counsel to the cable organization.

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China

Hytera’s Inclusion on FCC’s National Security Blacklist ‘Absurd,’ Client Says

Diversified Communications Group said the FCC flubbed on adding Hytera to blacklist.

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Acting FCC Chairwoman Jessica Rosenworcel

WASHINGTON, September 8, 2021 – A client of a company that has been included in a list of companies the Federal Communications Commission said pose threats to the security of the country’s networks is asking the agency to reconsider including the company.

In a letter to the commission on Tuesday, Diversified Communications Group, which installs and distributes two-way radio communications devices to large companies, said the inclusion of Hytera Communications Corporation, a Chinese manufacturer of radio equipment, on a list of national security threats is “absurd” because the hardware involved is not connected to the internet and “does not transmit any sensitive or proprietary data.

“It seems that Hytera has been lumped in with other Chinese companies on the Covered List simply because they happen to manufacture electronics in the same country,” Diversified’s CEO Ryan Holte said in the letter, adding Hytera’s products have helped Diversified’s business thrive.

“This is a wrong that should be righted. Hytera is not a national security risk. They are an essential business partner to radio companies throughout the U.S.,” the CEO added.

In March, the FCC announced that it had designated Hytera among other Chinese businesses with alleged links to the Communist government. Others included Huawei, ZTE, Hangzhou Hikvision Digital Technology, and Dahua Technology.

List among a number of restrictions on Chinese companies

This list of companies was created in accordance with the Secure Networks Act, and the FCC indicated that it would continue to add companies to the list if they are deemed to “pose an unacceptable risk to national security or the security and safety of U.S. persons.”

Last month, the Senate commerce committee passed through legislation that would compel the FCC to no longer issue new equipment licenses to China-backed companies.

Last year the U.S. government took steps to ensure that federal agencies could not purchase goods or services from the aforementioned companies, and had previously added them to an economic blacklist.

In July, the FCC voted in favor of putting in place measures that would require U.S. carriers to rip and replace equipment by these alleged threat companies.

The Biden administration has been making moves to isolate alleged Chinese-linked threats to the country’s networks. In June, the White House signed an executive order limiting investments in predominantly Chinese companies that it said poses a threat to national security.

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Digital Inclusion

FCC Says 5 Million Households Now Enrolled in Emergency Broadband Benefit Program

The $3.2 billion program provides broadband and device subsidies to eligible low-income households.

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Acting FCC Chairwoman Jessica Rosenworcel

August 30, 2021—The Federal Communications Commission announced Friday that five million households have enrolled in the Emergency Broadband Benefit program.

The $3.2-billion program, which launched in May, provides a broadband subsidy of $50 per month to eligible low-income households and $75 per month for those living on native tribal lands, as well as a one-time reimbursement on a device. Over 1160 providers are participating, the FCC said, who are reimbursed the cost to provide the discounted services.

The agency has been updating the public on the number of participating households for the program. In June, the program was at just over three million and had passed four million last month. The program was part of the Consolidated Appropriations Act of 2021.

“Enrolling five million households into the Emergency Broadband Benefit Program in a little over three months is no small feat,” said FCC Acting Chairwoman Jessica Rosenworcel. “This wouldn’t have been possible without the support of nearly 30,000 individuals and organizations who signed up as volunteer outreach partners.”

Rosenworcel added that conversations with partners and the FCC’s analysis shows the need for “more granular data” to bring these opportunities to more eligible families.

The program’s strong demand was seen as far back as March.

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