GNG News Guy
12-05-2007, 08:23 AM
http://i.dslr.net/urls/49/4249.gif (http://www.dslreports.com/shownews/FCC-Denies-Verizon-Forbearance-Request-89964)
When the FCC deregulated DSL back in 2005 (http://www.thegng.org/shownews/66174), they effectively killed line sharing, though telcos in some markets are still forced to lease lines to competitors at reduced rates. Verizon has been fighting to eliminate these requirements along the eastern seaboard, and petitioned the FCC for "forbearance" from the rules because they say these markets are now competitive. Verizon General Counsel Edward Shakin recently explained Verizon's push:"There's a tremendous amount of competitive choice in Boston in particular. Competition isn't going to be hurt by removal of these price controls. It distorts the market; it becomes harder to build service for everyone when there are subsidized services that are priced, oftentimes, lower than our cost to do it."
Even the telco-friendly FCC, who frequently love themselves some telco deregulation, wasn't buying it. They yesterday denied (http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278708A1.pdf) (pdf) Verizon's petition, saying the FCC found "that the current evidence of competition does not satisfy the section 10 forbearance standard with respect to any of the forbearance Verizon requests."
The change, which was opposed by consumer advocates and Verizon competitors alike, would have affected service in the metropolitan areas of Boston, Providence, New York, Philadelphia, Pittsburgh and Virginia Beach by allowing Verizon to raise rates on competitors, potentially driving them out of those markets. Qwest and AT&T have been fighting for similar forbearance in their own markets.
read comment(s) (http://www.dslreports.com/shownews/FCC-Denies-Verizon-Forbearance-Request-89964)
When the FCC deregulated DSL back in 2005 (http://www.thegng.org/shownews/66174), they effectively killed line sharing, though telcos in some markets are still forced to lease lines to competitors at reduced rates. Verizon has been fighting to eliminate these requirements along the eastern seaboard, and petitioned the FCC for "forbearance" from the rules because they say these markets are now competitive. Verizon General Counsel Edward Shakin recently explained Verizon's push:"There's a tremendous amount of competitive choice in Boston in particular. Competition isn't going to be hurt by removal of these price controls. It distorts the market; it becomes harder to build service for everyone when there are subsidized services that are priced, oftentimes, lower than our cost to do it."
Even the telco-friendly FCC, who frequently love themselves some telco deregulation, wasn't buying it. They yesterday denied (http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278708A1.pdf) (pdf) Verizon's petition, saying the FCC found "that the current evidence of competition does not satisfy the section 10 forbearance standard with respect to any of the forbearance Verizon requests."
The change, which was opposed by consumer advocates and Verizon competitors alike, would have affected service in the metropolitan areas of Boston, Providence, New York, Philadelphia, Pittsburgh and Virginia Beach by allowing Verizon to raise rates on competitors, potentially driving them out of those markets. Qwest and AT&T have been fighting for similar forbearance in their own markets.
read comment(s) (http://www.dslreports.com/shownews/FCC-Denies-Verizon-Forbearance-Request-89964)