Reactions to the FCC Decision

Following today's decision by the FCC, numerous companies released statements. These include:



AT&T described the decision as "a difficult compromise", hailing the prospect of continued local telephone competition, but saying the FCC's order grants the Bell companies vastly more deregulation than justified. In particular, AT&T expressed concern that "the Bells will be permitted to deny competitors access to hybrid fiber-copper loops, even for existing fiber and even in markets where customers have no alternatives to the Bell companies' facilities."



WorldCom said it was relieved the FCC voted to preserve competition in the residential local market, but was disappointed that the FCC order "prohibits competitors from reaching their broadband customers over Bell fiber networks. Such facilities already have long been deployed as part of normal Bell network upgrades."



BellSouth said the FCC "missed an historic opportunity to address serious problems in the vital telecommunications industry sector." BellSouth predicted that if the decision is legally allowed to stand, it would "perpetuate the hostile environment for telecom investment" and "disturbances from bankruptcies, excess capacity, and sharing at prices below cost will persist."



Qwest Communications expressed disappointment, saying the "uncertainty that has surrounded the telecommunications industry for nearly the past two years -- limiting access to capital and stifling new investment -- will continue as a result of today's decision."



SBC said the ruling was disappointing because it "allows the giant long distance companies to continue cherry picking the highest margin customer without providing any benefits to the average consumer." SBC also said the decision appears to "fly in the face of previous orders by the United States Supreme Court and the U.S. Court of Appeals."



Verizon Communications said the FCC had a great opportunity to bring stability, certainty and clarity to the regulatory environment, but "blew it." Verizon characterized the decision as "a recipe for continued disarray in the industry and more litigation." The company said it plans to appeal portions of the order and continue its fight on all fronts -- Congress, courts, states and the FCC.



Covad Communications said the decision to eliminate line sharing would result in "less choice and increased prices for consumers and small businesses if local phone companies set unreasonable prices for last-mile access." The company noted that the FCC action does not directly affect its access to second-line loops and T1 facilities, which Covad uses to serve business customers. These accounted for more than 60% of Covad's recurring revenues in 2002.



The Telecommunications Industry Association (TIA) stongly applauded the FCC order, predicting the decision to deregulate new last mile broadband facilities would make a significant contribution to spurring a recovery in the telecommunications industry.



The High Tech Broadband Coalition (HTBC) said by setting a clear demarcation between legacy copper and packetized capacity, the FCC ruling represents "a major triumph for the consumers of this country. HTBC is a trade association representing major network equipment suppliers, semiconductor vendors, software developers and consumer electronics companies.



The BroadNet Alliance (BroadNet), which represents independent ISPs, expressed dismay at the FCC's decision regarding line sharing rules, saying it would lead to higher retail prices for broadband consumers.
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