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CenturyLink: FCC Rate Cuts Could Be Crippling

Multichannel News By John Eggerton

CenturyLink says the FCC’s new business data services (BDS) proposal could mean crippling rate cuts while ignoring evidence of competition.

The company accused the FCC of a flawed and dangerous approach that lacked transparency.

The FCC last Thursday (Oct. 27) scheduled a vote for the November 17 public meeting on FCC Chairman Tom Wheeler’s BDS revamp.

The chairman is proposing what is billed as a tech-neutral approach to regulating business broadband – credit card transactions and ATM connections, for example – regulating it wherever the FCC finds markets are not competitive, maintaining price caps on incumbent/independent local exchange carriers (ILECs) and regulating new competitive local exchange carriers (CLECS), including cable broadband providers on a case-by-case basis. Initially the proposal was to impose ex ante (before the fact) price regulation on incumbents according to a geographic approach, but that was changed to the case-by-case model.

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investinbbandCenturyLink: FCC Rate Cuts Could Be Crippling