WASHINGTON-T-Mobile USA Inc. told the Federal Communications Commission that since it is actively trying to compete with wireline carriers, it should be able to receive access to unbundled network elements at regulated rates instead of having to pay special access for these elements.
“If T-Mobile were able to use UNEs to provide its base station-to-central office links and interoffice transport, it could reduce its monthly costs of service. This cost reduction would enhance T-Mobile’s ability to compete against the incumbent local exchange carriers in the provision of local services. For example, lower costs would allow T-Mobile to offer service packages at more attractive prices to customers that currently rely on wireline LECs as their primary local exchange provider. Access to UNEs also would reduce the cost of adding and operating new base stations, which would allow T-Mobile to upgrade its network, invest in advanced technologies, and improve service quality to make its service a more viable alternative to the wireline service provider by the ILECs,” said Thomas Sugrue, former chief of the FCC’s Wireless Telecommunications Bureau, now T-Mobile vice president of government affairs.
In a closely watched decision, the FCC in December-for the fourth time-re-wrote its local competition rules. Each time the FCC has tried to write regulations implementing the Telecommunications Act of 1996, the U.S. Court of Appeals for the District of Columbia Circuit has said it was wrong and returned the decision. At issue is what network elements incumbent local exchange carriers must make available to competitors and under what conditions.
During the last go around, the D.C. Circuit separated out the wireless piece. The D.C. Circuit said the FCC must look at the availability of special access before deciding that wireless carriers are so “impaired” that they must have access to transport at Telric rates-a regulated formula based on forward-looking costs.
Wireless carriers that do not have wireline affiliates often have “`special-access” contracts with wireline companies to carry traffic between the base station and the mobile switching center. Special access is more expensive than UNEs.
Acting on the precedent set in the recent acquisition of AT&T Wireless Services Inc. by Cingular Wireless L.L.C. where the FCC said that intermodal competition was not yet occurring, the commission affirmed this decision by saying that because the mobile-phone market is a separate, fully-competitive market, wireless is not entitled to the same benefits as wireline competitors.
The Triennial Review Order-the FCC’s third attempt-was so contentious that it split the agency apart with new FCC Chairman Kevin Martin siding with the Democrats and defeating then-FCC Chairman Michael Powell. The move created a majority not led by the chairman-something rarely seen at the FCC. Martin came back in line, however, when the D.C. Circuit overturned his rules and the decision was made to not ask for Supreme Court review.
