At today’s FCC meeting, the Commissioners voted along
party lines to phase in the elimination of price caps on Business Data Services
(BDS) provided by traditional phone companies if, within a county, 50% of the
businesses are within a half mile of a location serviced by a competitive
provider or if 75% of census blocks are served by a cable operator. If the percent threshold is met, the market (the
entire county) is deemed sufficiently competitive.
The FCC Chairman, Ajit Pai, argued that “Price regulation—that
is, the government setting the rates, terms, and conditions for special access
services—is seductive. Who can possibly
resist the promise of forcing prices lower right now? But, in reality, price regulation threatens
competition and investment.” Pai hopes
the rule change will lure new entrants.
Opponents believe that the rule change will mean higher prices for a
large number of businesses.
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