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FCC Tariff Investigation Takes Rear-View Mirror Approach


Contrary to Broadband Modernization Goals


Background: Today, the Federal Communications Commission (FCC) announced it would examine tariffed pricing plans for business broadband services offered by four USTelecom member companies.

The following statement is from USTelecom President Walter McCormick:

“Although the FCC says that it wants to be a data-driven agency, promote facilities-based competition, and incent broadband investment, it just can’t seem to get beyond its telephone-era mindset when it comes to regulating 20th century legacy services. The future of the business services market is in advanced, IP-based high-speed networks that are offered today throughout the nation on a competitive basis by cable and others who can provide service under private contracts that are exempt from regulation. Yet, at the very time the commission is expressing concern over the growing dominance of cable in the overall broadband marketplace, and acknowledging that burdensome legacy regulation of telecom companies is misdirecting investment and hindering competition, it launches an old-fashioned “tariff” investigation of the only competitors in the marketplace who are required to operate under last century’s antiquated rules. While we are unconcerned by what the investigation will show, as the longstanding terms and conditions contained in the tariffs are fair and lawful, we think the launch of this costly investigation is contrary to the public interest and the commission’s oft-stated broadband modernization policy objectives.”

USTelecom is the nation’s premier trade association representing service providers and suppliers for the telecom industry. Its diverse member base ranges from large publicly traded communications corporations to small companies and cooperatives – all providing advanced communications services to both urban and rural markets.


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