Before the

FEDERAL COMMUNICATIONS COMMISSION

Washington, D.C. 20554

 

 

 

In the Matter of                                                            )

                                                                                    )                      

Inquiry Concerning the Deployment of               )

Advanced Telecommunications                         )                      

Capability to All Americans in a Reasonable                  )          

and Timely Fashion, and Possible Steps                        )           CC Docket No. 98-146

to Accelerate Such Deployment                                    )          

Pursuant to Section 706 of the                          )

Telecommunications Act of 1996                                  )          

                                                                                    )

Third Notice of Inquiry                                               )

________________________________________________________________________

 

 

REPLY COMMENTS

OF THE

UNITED STATES TELECOM ASSOCIATION

 

 

The United States Telecom Association (“USTA”)[1] hereby files its reply comments in response to the Commission’s Third Notice of Inquiry (“NOI”) on the deployment of advanced telecommunications services pursuant to Section 706 of the 1996 Act.

            As the Commission considers regulatory and policy options to promote even greater deployment of, and access to, advanced telecommunications services, it is imperative that this Commission seize the opportunity to promote and sustain competition among different providers of such services for the benefit of consumers and businesses by reforming the rules of competitive engagement.   Forward-looking reforms must (1) favor no technology or provider, (2) recognize that where competition exists between service providers competitive services provided over different network platforms should not be regulated, (3) be flexible and adaptable to meet specific market realities faced by individual carriers, (4) acknowledge that market forces must drive competition and deployment, and (5) accept that such factors as demand for advanced services, costs, network configurations, market conditions concerning access to capital and regulatory limitations including rate design and pricing structure will weigh heavily on how and when deployments will take place.   With limited financial resources, all providers of advanced telecommunications services must be assured by the Commission that the regulatory conditions for investing in this market segment are favorable, with a reasonable opportunity for all carriers to earn a profit on their investments.   The Commission’s regulatory environment must not be hostile to any carrier seeking to provide advanced telecommunications services, whether that provider uses wireline, wireless, satellite, cable or some yet to be utilized network technology.  The Commission’s regulatory reforms must be agnostic to the technology or provider of services to justify any carrier undertaking the investment of financial, human and technological resources necessary for successful deployment of advanced telecommunications services.

            The Commission has heard the arguments for retaining different regulatory regimes for different network providers of advanced telecommunications services.   These arguments have been disavowed by the Commission, in Whitepapers sponsored by the Commission’s Office of Plans and Policy, the GAO, and the investment community as impediments to the assumption of risk necessary to deploy advanced  telecommunications networks and services.[2]   It is time for all parties and the Commission to move beyond this ill-conceived rhetoric and into the mainstream of contemporary policies that will further the availability of advanced telecommunications services to consumers and businesses.   Where the Commission has determined, as it has with advanced telecommunications services, that no provider or technology dominates, there is no basis for regulating any networks or providers of such services differently.   USTA has consistently supported competition over regulation, deregulatory parity over disparity for carriers providing functionally equivalent access to advanced telecommunications services over different network platforms and forbearance from regulation for competitive services.   Market conditions and demand for advanced telecommunications services, coupled with Commission policies which provide incentives for carriers to undertake the business risks to deploy such services, must serve as the cornerstone of future deployments if the vision of Section 706 is to be realized.

            Intel and the Progress and Freedom Foundation (“PFF”) provide comments that are generally consistent with the arguments supported by USTA. 

            According to Intel, “Besides demand-side risks … broadband providers face investments risks, competing technologies and companies, as well as regulatory disincentives and uncertainty.” [3]    Intel proposes that the Commission “undertake a comprehensive review of current regulation to assure that all companies that take the risk

of deploying new last mile broadband facilities reap the rewards if they prove successful. The real winner will be the American public.”[4]    USTA supports the sentiments of Intel.  PFF correctly states that “the most conducive environment for encouraging investment in broadband facilities is one in which all providers, regardless of technology, are free from the public utility-style regulatory regime that characterized narrowband voice communications for decades proceeding the 1996 Telecommunications Act.”[5]   In support of its arguments, PFF references remarks of Chairman Powell who states “we must foster competitive markets, unencumbered by intrusions and distortions from inapt regulations.”[6]   

USTA’s remarks in this and other Commission proceedings are generally consistent with the comments of Intel, PFF and Chairman Powell.  What USTA proposes are regulatory reforms that benefit consumers and businesses seeking access to advanced telecommunications services, while not penalizing any technology or provider.   As USTA commented “Future deployment of such services will depend upon Commission reforms which recognize that competition, driven by innovation, risk taking, and the demands of consumers and businesses must be the foundation of Commission public policy.   Conversely, maintaining regulations that stifle competition, and create disincentives to investment in deployment of advanced telecommunications networks and services, will simply impede nationwide deployment of such services.”[7]   These reforms are needed right here, right now, if the benefits of advanced telecommunications services to consumers and businesses envisioned by Section 706 are to be realized.   The Commission can ill-afford not to meet this challenge, head-on, today.     

                                               

Respectfully submitted,

 

                                                            UNITED STATES TELECOM ASSOCIATION   

 

 

                                                                        /s/   Keith Townsend

October 9, 2001                      By:       _________________________________________

                                                            Lawrence E. Sarjeant

                                                            Linda L. Kent

                                                            Keith Townsend

                                                            John W. Hunter

                                                            Julie E. Rones

 

                                                            1401 H Street, NW

                                                            Suite 600

                                                            Washington, DC  20005

                                                (202) 326-7371 

 

 

 

 

 

 

 

 

 

 

 

 

 


[1]               As the nation’s preeminent telecom trade association, USTA represents a diverse membership of over 1,200 telecommunications companies, including ILECs and CLECs, who provide advanced telecommunications services over wireline and wireless networks nationwide.        

[2]               See USTA Comments, In the Matter of Inquiry Concerning High-Speed Access to the Internet Over Cable and Other Facilities, Gen Docket No. 00-185, filed December 1, 2000.   

[3]               Intel Comments at 11.

[4]               Intel Comments at 15-16.

[5]               PFF Comments at 18.

[6]               Id. at 22.

[7]               USTA Comments at 4.