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Technology transitions update: NPRM and DECLARATORY RULING

December 2, 2014. Technology transitions update: NPRM and DECLARATORY RULING. Background. Jan. 2014 Order authorized experiments and other data-gathering initiatives Record since then reflects important policy questions NPRM provides a vehicle for addressing them

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Technology transitions update: NPRM and DECLARATORY RULING

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  1. December 2, 2014 Technology transitions update:NPRM and DECLARATORY RULING

  2. Background • Jan. 2014 Order authorized experiments and other data-gathering initiatives • Record since then reflects important policy questions • NPRM provides a vehicle for addressing them • Experiments will proceed in parallel

  3. Network Compact – Guiding Principles CONTINUITY OF POWER

  4. Goals Facilitate transitions to next generation networks via common sense, technology neutral rules. Three areas: • Ensuring reliable backup power • Protecting consumers by ensuring that they are informed about their choices • Preserving competition where it exists today

  5. Part 1: Continuity of Power • Fiber-based and other new networks bring tremendous benefits to consumers • But new networks have a different profile during power outages • Requires access to alternative power source (e.g., battery backup) CONTINUITY OF POWER

  6. Continuity of Power • Propose adopting baseline requirements for facilities-based fixed voice services • Technology neutral • Provider would be responsible for first eight hours of outage • Seeks comment on wide range of issues, including division of responsibility for extended outages CONTINUITY OF POWER

  7. Consumers and Competition

  8. Part 2: Protecting Consumers • Post-Sandy debate in Fire Island provided valuable insight • Highlights importance of getting ready for larger-scale transitions Photo courtesy of NPS.gov (Stewart)

  9. Consumers & Copper Networks • January Order recognized that carriers rationally will seek to retire copper at network “tipping point” • NPRM • Proposals for basic notice, education to consumers • Seeks comment on allegations of lack of transparency, other consumer protection concerns • Seeks comment on role of States, localities, Tribal Nations CONTINUITY OF POWER

  10. Consumers & Services • In addition to evolutions in facilities (e.g., copper, fiber, coax), carriers will transition many services (e.g., POTS) • Section 214(a) provides FCC with responsibility to oversee service discontinuances

  11. Consumers & Services • Seeks comment on whether FCC should establish criteria for defining “adequate substitutes” for services a carrier seeks to take off the market • “Everyone concerned would be best served by the Commission’s articulation of criteria now.”

  12. Part 3: Preserving Competitive Choices CONTINUITY OF POWER Source: Ex Parte filing of Windstream Corp (GN 13-5), Aug. 7, 2014, citing data from independent market research firm GeoResults.

  13. Competition & Copper Retirement • Proposals: • Defining “copper retirement” as removing or disabling of copper loops, subloops, and feeder portion of loops • More information to interconnecting carriers • Notice to states, other stakeholders • Seeks comment on methods to facilitate sale or auction of copper to be retired CONTINUITY OF POWER

  14. NPRM: Competition & Services Tentative Conclusion: Standard for evaluating applications to discontinue incumbent services used as wholesale inputs Replacement Service Legacy Service to be discontinued • Equivalent wholesale access • Equivalent rates, terms & conditions

  15. NPRM: Competition & Services • Seeks comment on proposed wholesale replacement standard, e.g.: • How to define “equivalent wholesale access” • Duration (especially in relation to special access proceeding) • Seeks comment on a rebuttable presumption that discontinuances of wholesale service impact end users • Seeks comment on whether termination of term discount plan and certain other actions can in some cases be a “discontinuance”

  16. Declaratory Ruling on Section 214(a) • Tariff not end of story to evaluating the scope of a “service” under section 214(a) • FCC takes a functional approach • Not every functionality is part of the “service”; must consider extent of community reliance CONTINUITY OF POWER

  17. Concluding Thought “[A]s we reach the tipping point at which the older networks and services are turned off, will the transitions to the next generation networks benefit all Americans or will we allow some to fall through the cracks? I firmly believe that we can facilitate the transitions, even while ensuring that the benefits accrue to everyone.” - Statement of FCC Chairman Tom Wheeler

  18. Comments Welcome! Federal Register Publication (TBD) will trigger comment cycle - Comments: 30 days after FR publication - Reply Comments: 60 days after FR publication NPRM and Declaratory Ruling: http://www.fcc.gov/document/fcc-takes-consumer-competition-911-safeguards-tech-transitions-1

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