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UNE Triennial Review. Highlights FCC’s earlier UNE decisions had been remanded for further review by both the Supreme Court and the DC Circuit Remand revolved around interpretation of “impairment” Unbundling rules were seen as overly permissive
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UNE Triennial Review • Highlights • FCC’s earlier UNE decisions had been remanded for further review by both the Supreme Court and the DC Circuit • Remand revolved around interpretation of “impairment” • Unbundling rules were seen as overly permissive • Only one commissioner voted for the order in its entirety; the other four all dissented on some issues • State commissions will be determining the future of UNEs—one state at a time • The order makes a distinction between typical voice services and future broadband services in its treatment of UNEs; also makes a distinction between traditional circuit switching and newer packet switching services • Everyone is gearing up to take the decision to court—both ILECs and CLECs
Some details • Local Circuit Switching • Presumption of no impairment (and therefore no UNE) if switching is for business customers served by DS-1 or other high capacity loops—states have 90 days to find otherwise • Presumption of impairment (and therefore is a UNE) for the mass market—states have 9 months to decide (on a granular basis) whether there is impairment or not; if no impairment, three year transition period to phase out UNE-P
More details • Packet switching—not a UNE • Signaling networks—UNEs only if switching is also ordered as a UNE • Call-related databases—except for 911 and E911, not a UNE unless switching also ordered as a UNE • OSS Functions—confirmed as a UNE
Loops • Mass market loops (copper)—continue as UNEs, ILEC can’t retire any copper loops without approval from state commission • Line sharing—HFPL no longer a UNE; three-year transition period; price of HFPL to increase to cost of full loop UNE • Hybrid loops—no UNE for packet-switching features; only voice grade channels or high capacity loops using TDM (DS1 or DS3) remain UNEs • FTTH loops—no UNE requirement; must continue to provide access to a transmission path suitable for providing narrowband service if the copper loop is retired.
Enterprise loops • No impairment for OCn capacity loops • Impairment for DS1, DS3, and dark fiber loops, except where triggers set by states are met; states can remove these UNEs based on customer location-specific analysis • Dark fiber and DS3 loops are each subject to customer location specific review by the states to identify where loop facilities have been self-deployed
More details • Copper subloops remain UNEs; also access to wiring near a multi-unit customer location regardless of type of loop • NID remains a UNE • Dedicated Interoffice Transmission Facilities • No impairment for OCn level transport • Impairment for dark fiber, DS1 and DS3, except when state triggers are met • Continuation of EELs (enhanced extended links) • Subject to certification and audit
Clarifications • Section 271—checklist items 4-6 and 10 are obligations independent of section 251 • TELRIC—risk-adjusted cost of capital and depreciation life • Transition period—individual carriers to negotiate terms and conditions • FNPRM—pick and choose rules
Where the commissioners stand • Chairman Powell • Supported broadband relief • Supported NPRM on pick and choose rules • Dissented on the end to line sharing • Dissented on continuing switching as a UNE and on delegating decisions to the states • Firmly convinced the decision will not stand up in court—UNEs not an “unqualified good” • Opposed to lack of national policy—problem of uncertainty will hurt CLECs and ILECs alike • “the switch is the brains of one’s network and to be without one is to be a competitor on life support fed by a hostile host.”
The commmissioners • Kathleen Abernathy • Supports • Broadband relief • Continuation of loop and transport UNEs • NPRM on pick and choose rules • Dissents • Treatment of switching as a UNE • Delegation to the states • End of line sharing
The commissioners • Michael Copps • Supports • Treatment of switching • Delegation to the states • End of line sharing (though not really happy about it) • Dissents • Broadband relief • “Today . . . We adopt one of our most important decisions to date by a split decision plagued by shifting pluralities. I am disappointed that we were not able to reach compromise on all of the questions and issue a unanimous decision as previous Commissions were often able to accomplish.”
The commissioners • Jonathan Adelstein • Supports • Treatment of switching • Delegation to the states • Dissents • Broadband relief
The commissioners • Kevin Martin • Supports all of the appoints; only one not to dissent on any of the details • Saw no reason to treat the switch as any different from the other UNEs • “I believe in limited government. I believe that competition—not regulation—is the best method of delivering the benefits of choice, innovation, and affordability to consumers. The 1996 Act puts in place a policy that requires local markets to be opened to competition first, and then provides for deregulation. I believe we have faithfully implemented this policy today.”