THE REGULATORY MIX AND BLOG ARTICLES

On Thursday the FCC adopted, with some modifications to the “triggers”, the draft Order on access stimulation. As I indicated in my earlier blog (Draft Access Stimulation Order -- Big Net with Big Consequences? dated 9/16/19), there were number of problems with the FCC’s proposed solution to the arbitrage issue.

FCC Addresses Access Stimulation 

At its Open Meeting this morning, the FCC voted to adopt a Report and Order aimed at combatting what it characterizes as “wasteful arbitrage schemes that exploit the system of intercarrier compensation between local and long-distance providers, and indirectly cost consumers an estimated $60 million to $80 million annually.”  The order reduces the financial incentives for carriers to engage in these schemes by requiring that the access-stimulating local phone company, rather than the long-distance company, be financially responsible for covering the cost of incoming traffic.  

The September 5 draft Order on eliminating access arbitrage is the FCC’s latest effort to address what is also known as “access stimulation”, and they made little effort to hide their true feelings on the issue. While their intent when it comes to certain business plans seems quite clear, some new provisions in the proposed order could lead to unintended outcomes and impact service providers who are far removed from any activities typically regarded as access stimulation.

What Will The FCC be Tackling Next? "Storming Back Stronger."

Chairman Pai’s theme for the September 26, 2019 Open Meeting is “Storming Back Stronger,” a phrase the surely resonates with those of us on the east coast who have spent the last week or two fretting over Hurricane Dorian.  The “storm” agenda is anchored by the FCC’s consideration of an order to finalize Stage 2 of the FCC’s Uniendo a Puerto Rico and Connect USVI Funds.