FCC Ruling Update
by David Hold, Broadband Publishing
Posted: 02/24/2003
Abstract:
On February 20, 2003, in a delayed and contentious public presentation, the FCC Commissioners released details of the long awaited Triennial Review regarding the rules by which Incumbent Local Exchange Companies (ILECs) must lease parts of their network to Competitive LECs as mandated by the 1996 Telecommunications Act. The full 300 page order was not ready for release, but enough details were provided to prepare a preliminary analysis, which we have attached as a PDF document.
Clearly, things did not work out as Chairman Powell and the Regional Bell Operating Companies had expected. The UNE- P regulation was given a renewed lease on life, much to the joy of the CLECs, but has been limited to mainly lower- speed copper loops and TDM circuits aimed at the mass market.
In a move aimed at stimulating the transition from narrowband to broadband, exemptions were made for packet switching and new fiber facilities. If the incumbent LECs decide to pursue this carrot, we can expect to see more investment in ATM switches, IP routers, DSLAMs, Circuit-to-Packet, optical transmission and FTTH facilities.
Next-generation technology vendors stand to benefit, while suppliers of traditional telecom technology such as TDM, DS- 1, DS-3 and circuit-switching stand to lose in the long run if they don't change their product mix.
One downside for the industry as a whole, in our opinion, is that instead of setting a single national standard for broadband deployment, many key determinations will be left up to the state public utility commissions. This will certainly add at least nine months of delay to the process, and numerous court challenges from both sides are certain to follow.
The regulatory process is far from settled, and additional FCC rule makings are expected in the months to follow.
http://www.webtorials.com/main/resource/papers/broadbandpub/paper1.htm