FCC Proposes Modernizing Rules For Smaller Carriers' Business Data Services

The Federal Communications Commission proposed modernizing rules governing business data services (BDS) for certain small rural carriers, known as Alternative Connect America Model, or A-CAM, carriers. 

The FCC is seeking comment on allowing A-CAM carriers to voluntarily migrate their lower speed time division multiplexing (TDM) services from rate-of-return regulation to price-cap, or incentive, regulation, which would encourage more efficient operation and allow carriers to avoid expending resources on regulatory compliance. In this way these proposed rules would reduce regulatory burdens and reward productivity, which can lead to further innovation, entry, and competition in the market for BDS to the ultimate benefit of consumers.

A-CAM carriers that migrate to incentive regulation for their lower speed TDM BDS would no longer need to conduct expensive and time-consuming cost studies. The Notice of Proposed Rulemaking also seeks comment on the elimination of ex ante pricing regulation for packetbased and higher speed TDM BDS. In addition, the Notice seeks comment on designing a competitive market test in A-CAM areas to determine where competition is available and whether there should be further relief from ex ante pricing rules for lower speed TDM BDS in areas deemed competitive. Finally, the Notice proposes allowing other rate-of-return carriers receiving fixed support to opt into this same regulatory paradigm. Under the proposal, BDS pricing would remain subject to statutory mandates requiring the FCC to ensure that rates, terms, and conditions of service are just, reasonable, and nondiscriminatory.