AT&T issued a public proposal to the each of the four Bell companies offering a new roadmap to facilities-based local competition. AT&T is proposing increases in the price of UNE-P by at least $3 in phases over the next 2 1/2 years so as to impose a financial penalty on competitors that continue to rely on UNE-P. In exchange, however, competitors would be able to obtain operational and economic access to "last-mile" loop facilities on terms that are reasonable and fair.
AT&T said it would support UNE-P price increases in exchange for reasonable reductions in the costs and necessary improvements in the provisioning required to support facilities-based competition. The framework also provides incentives for AT&T to accelerate deployment of its own facilities.
If the agreement is accepted, AT&T would enter into long-term commercial wholesale agreements with the Bell companies that will accelerate facilities deployment by addressing operational barriers associated with the provisioning of unbundled loops, increasing prices for UNE-P facilities, and reducing costs associated with the use of unbundled loops.
As part of its public proposal, AT&T also published a term sheet for negotiations. http://www.att.com
- FCC Chairman Michael Powell issued a statement applauding AT&T's effort to move forward on the contentious issue of access to local phone network elements. Powell stated "In the long run, the transition to facilities-based competition holds out the best promise of real benefit to America's telephone consumers."
