Trade organisation slams Verizon`s broadband lobbying

Verizon Communications has provoked competitors` ire yet again, with US trade industry body Comptel slamming its efforts to obtain regulatory exemptions on certain broadband data services - including mandatory interconnection with rivals, contributions to the Universal Service Fund and requirements to negotiate deals with other carriers. The Federal Communications Commission on Monday granted an exemption on broadband data regulations governing business customers due to a filing technicality.~ ~ "The Chairman`s action yesterday represents the height of irresponsibility," Comptel CEO Earl Comstock said in a statement. "As a result, competition and consumers are now at the mercy of Verizon`s financial self-interest."~ ~ "What makes this action particularly egregious is that Verizon has already been granted significant regulatory relief through previous actions championed by the Chairman, and two similar petitions by AT&T and Bell South were withdrawn after those actions. Verizon alone thumbed its nose at the Chairman by not withdrawing its petition," he added. "The responsible course of action would have been to reject the petition. Verizon could have refiled and the Commission could then have considered the request with a full complement of commissioners.

Instead the Chairman chose the underhanded tactic of allowing the petition to go into effect by operation of law, depriving the public and the courts of any explanation."~ ~ Archrival AT&T backed the carrier, with CEO Ed Whitacre telling reporters that he will try to win similar exemptions for his company. "I think it will be pretty close to what Verizon did. I`m sure if Verizon has it, we`ll get it too."~ ~ But FCC chairman Kevin Martin is likely to require a third Republican commissioner before granting exemptions to Verizon`s rivals. Both Democratic commissioners sided with Comptel in opposing the move, claiming consumers will suffer higher prices. Last week, the Senate Commerce Committee approved Comptel lawyer Robert McDowell to assume the vacant seat, although it`s unknown whether he is likely to side with fellow Republicans or the competitive advocacy group. Stifel, Nicolaus & Co analyst Blair Levin said other top carriers are almost certain to press for similar exemptions, while rivals might bog down the process in the courts.~ ~ "It`s certainly possible they will gain similar deregulation, at least eventually; but if there is a delay, Verizon could gain a temporary regulatory advantage, which could be particularly important in the traditional enterprise competition between AT&T and Verizon in the latter`s region," Levin said.~ ~ Meanwhile, Verizon claims to have captured a 30 per cent market share in the first city to enjoy its FiOS fiber television service. CEO Ivan Siedenberg said the debut launch market of Keller, Texas has "exceeded even our most aggressive forecast" within six months of service. The carrier hopes to pass 6 million homes with FiOS by the end of the year, expanding to up to 20 million by 2010.~