US issue proposed rules on business data services
The US FCC has issued proposed rules on business data services (BDS), sometimes referred to as ‘special access’, which are enterprise data services that are a fundamental part of the US economy. The proposed order “provides a new framework for this market that strikes a balance between targeted regulation for legacy TDM (DS1 and DS3) services, where evidence of market power is strongest, and lighter-touch regulation of packet-based services, where there has been new entry and competition may be emerging. The order also reaffirms that TDM and Ethernet BDS are both subject to the Commission’s Title II oversight.” The framework also supports the rapid deployment of innovative 5G mobile services by ensuring that wireless providers have fair access to BDS, including packet-based BDS, at just and reasonable rates, terms and conditions. But Anna-Maris Kovacs, writing in Morning Consult, is critical and says: “Perhaps the most interesting thing about this fact sheet is its admission that ex ante rate regulation is harmful to investment. Despite this understanding of the potential consequences, the proposed order would drain free cash flow from broadband providers – primarily incumbents, but also some of their facilities-based competitors.” See also an article on this in the current issue of the IIC’s Intermedia journal. FCC here. Morning Consult here.
- Thursday, 03 November 2016