FCC seeks more remarks on special-access regs

The Federal Communications Commission asked for a new round of public comment on regulation of special-access lines, last-mile connections essential to wireless carriers and largely controlled by AT&T Inc. and Verizon Communications Inc.
House telecom subcommittee Chairman Edward Markey (D-Mass.), citing a 2006 Government Accountability Office report that concluded competition in special-access services is generally lacking in major U.S. cities, has urged the FCC to re-examine the matter as a prelude to possibly issuing new rules by Sept. 15.
“Because all wireless carriers rely so heavily on special-access connections today, and will do so to an even greater extent in the future as they deploy next-generation broadband networks, I believe it is imperative for the commission to modify its pricing flexibility rules for special access,” stated Markey in a May 23 letter to the five FCC commissioners. “My concern is that the prices wireless carriers pay today are higher than a truly competitive marketplace would support. As a result, unduly high prices may force such carriers to expend funds on special access that would be better spent on upgrading their networks to provide broadband services.”
Special access was a major flashpoint in the AT&T-BellSouth Corp. merger, with the parties agreeing to temporary conditions to gain FCC approval late last year.
Sprint Nextel Corp. and T-Mobile USA Inc., the third- and fourthlargest wireless carriers, were among the parties that wanted specialaccess conditions attached to the $89 billion deal. The two have been the most outspoken wireless carriers on the issue. The dedicated links at issue carry traffic from wireless base stations to the mobile-switching center, or to the public switched telephone network.
“Sprint Nextel welcomes the commission’s commitment to take long-awaited action on special access,” the No. 3 mobile-phone operator stated. “We are confident that the record will further demonstrate the critical need to impose pricing discipline on the monopoly special-access market, particularly as carriers seek to provide competitive broadband services.”