CenturyLink: Verizon Wants It Both Ways on BDS

CenturyLink says Verizon is trying to have it both ways on the competitiveness of the business broadband market, and thus the need for potential new rate regulations. In a letter to the Federal Communications Commission, CenturyLink pointed out that stumping for its purchase of XO Communications, Verizon included an economic study entitled “Whitepaper on the effect of Verizon’s XO acquisition on business data services.” "[A]lthough the Verizon-INCOMPAS [BDS revamp] proposal is predicated on a lack of BDS competition, the Whitepaper emphatically concludes that 'there will continue to be extensive competition for [BDS] provided over fiber, cable, and copper by a wide range of providers' following the proposed transaction," said CenturyLink.

FCC chairman Tom Wheeler has based his proposed revamp of BDS (formerly special access) on a Verizon/INCOMPAS proposal. Incumbent carriers other than Verizon—CenturyLink, AT&T—do not support the proposal. Cable Internet service providers also feel targeted since it could mean imposing new rate regulations on them. “CenturyLink’s characterization of the Verizon/INCOMPAS joint proposal is wrong," said Kathy Grillo, Verizon senior VP and deputy general counsel. "Our joint proposal is not a commentary on the current state of competition. It is a compromise intended to resolve an issue that has been overhanging the industry for years.