FCC Wireline Drafts for Nov. 19 Votes Include Transition Periods for Deregulation

The FCC released drafts of rules Tuesday to modernize unbundling and resale requirements for LECs, update suspension and debarment rules for telecom relay services programs, and modify cost recovery rules for IP-captioned telephone service (IP CTS), a form of TRS. Commissioners tentatively will vote at their Nov. 19 meeting (see 1910280054). Deregulating what incumbents must provide rival telecoms would include transition periods.

The agency proposes removing requirements for ILECs to unbundle network elements including DS1 and DS3 loops that made them available for resale to competitive LECs, in counties and study areas deemed competitive. It would exempt from the new rules DS1 loops used to provide residential broadband and voice in rural areas, says an NPRM for docket 19-308. The proposal would eliminate unbundling and resale requirements for DS0 loops in urban census blocks, narrowband voice-grade loops, and dark fiber transport in wire centers within a half-mile of alternative fiber. The draft proposes removing avoided-cost resale requirements in non-price cap ILEC service areas. A three-year transition is proposed for existing customers. It asks for comments on whether to add a six-month transition to allow for new orders.

Incompas said protecting facilities-based broadband competitors is essential to the 5G future. "Smaller local broadband builders beat back AT&T’s forbearance petition and will fight the telecom giants’ ongoing efforts to raise prices and prevent new competitive deployment," CEO Chip Pickering emailed Tuesday. “The FCC has had an all-of-the-above approach to broadband deployment, which includes fixing the maps, USF reform and the removal of local monopoly barricades. But knocking out the bridge to broadband makes it harder to achieve these goals, as smaller local builders will be cut off from new customers."

Telecom incumbents have received forbearance from other requirements to make elements of their networks available to competitors, including this year in response to a USTelecom petition (see 1908050009). The commission says it "adjusted its unbundling and resale obligations to reflect the realities of the evolving communications marketplace and to encourage incumbent and competitive LECs alike to invest in next-generation facilities."

The FCC would seek comment on how to best modernize ILECs' remaining unbundling obligations to help stimulate facilities-based competition. It doesn't view unbundled network element (UNE) obligations "as being of infinite, or even indefinite, duration." The agency proposes to maintain existing unbundling of mass market broadband-capable loops in rural areas, acknowledging "there remains a digital divide between urban areas, which boast increasing numbers of intermodal broadband providers, and rural areas." UNE DS1 loops would remain available for residential broadband and voice service in rural census blocks, and the agency asked for confirmation that DS3 loops aren't generally used for residential consumers: "Findings regarding DS1s and DS2s for the enterprise market may not translate cleanly to the rural, residential market."

The agency would seek comment on its view that "cable providers will build out to the remaining urban census blocks in the near future" and CLECs will also upgrade their networks to compete in urban markets. It wants commenters to clarify that they don't use TDM capabilities of hybrid fiber/copper/cable loops to deliver broadband.

CLECs aren't impaired without access to unbundled dark fiber transport to wire centers within a half mile of alternative fiber, the FCC proposes.

The agency wants to curb waste, fraud and abuse with TRS, says a draft NPRM for docket 19-309. It wants more authority to "suspend or debar bad actors, including the ability to consider a broader range of misconduct and to immediately suspend entities when necessary." TRS equipment providers participating in the federal program would be required to vet subcontractors or providers to ensure they hadn't been excluded. The FCC wants to make sure suspended entities can't participate in other federally funded programs. Under current rules, the TRS program suspends or debars only "following a conviction or civil judgment showing malfeasance arising from or related to USF programs." The FCC says litigation can take years. It seeks discussion on potential unintended consequences and whether the cost of running such a program might outweigh the benefits. Primary participants would include those in the TRS and national deaf-blind equipment distribution program. The FCC chairman would be able to grant exceptions case by case.

The FCC suggests possible grounds for suspension would include repeat offenses, habitual nonpayment or underpayment of regulatory fees, and willful rule violations. It suggests a three-year suspension. It questions what the FCC should do in the absence of an alternative provider.

The draft IP CTS order on docket 13-24 would modify cost recovery rules so intrastate communications providers must contribute to the TRS Fund to support the captioning service, not just interstate providers.