FCC Commissioners Remain Split over Unbundling Decision

Six months after their contentious 3-to-2 vote on the landmark Triennial Review proceeding, FCC commissioners remained divided over key points of the ruling.


Chairman Michael Powell said he was pleased that the majority made a number of changes to the final UNE-P order that respond to his concern, but that he remains convinced that many of the decisions represent poor public policy and flout the law. In a 17-page dissent, Powell writes that trying to preserve UNE-P switching as a favored means of competition without any meaningful considering of the true social and economic costs will ultimately be bad for consumers.


Commissioner Kevin J. Martin, who was credited with leading the majority vote, described the order as a "balanced approach" that ensures competition and deregulation. In his majority opinion commentary, Martin also insisted that the order is consistent with the statutes and rulings of the courts. Martin believes the order will jumpstart investments in next generation networks, especially in packet technologies and new deployments of fiber to the home. Furthermore, he defended state commissions as the best decision makers on issues regarding UNE-P unbundling and local competition.


Commissioner Kathleen Q. Abernathy said she strongly supports the decision to create a national policy that exempts new broadband investment from unbundling at deeply discounted TELRIC rates. Abernathy expressed disappointment with the decision to "perpetuate the reliance on the UNE-P platform in the face of widespread switch deployments by CLECs." She also dissented with the decision to grandfather all existing line sharing arrangements.


Commissioner Michael J. Copps supported most of the decision, stating that state commissions are best positioned to make determinations about the competitive landscape in their local markets. However, Copps disagreed with the policy of limiting a competitor's access to broadband loop facilities wherever an ILEC has deployed a hybrid copper/fiber loop. He argues that as incumbents deploy fiber anywhere in their loop plants they will be relieved of unbundling obligations necessary for competition to take hold.


Commissioner Jonathan S. Adelstein agreed with the majority opinion on most issues, although he believes the broadband decision provides inconsistent incentives for service providers.
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