US operators stand to benefit from a Federal Communications Commission (FCC) decision to ease regulations covering access to broadband networks.
The regulator voted to amend the way it defines competition in the country’s broadband sector, effectively clearing the way for operators to raise prices in areas served by only one player. The decision overturns rules imposing price caps in such areas, which were designed to ensure access to affordable broadband services.
In a statement, FCC chairman Ajit Pai (pictured) said such micromanagement of pricing “can thwart competition” and “stifle investment”. However, commissioner Mignon Clyburn slammed the decision, stating it would lead to “price hikes” for small businesses, hospitals, schools, libraries and police departments in rural areas.
Pai acknowledged some believe the decision “goes too far”, but said he believes the FCC “got it just right.”
US telecoms operators are likely to agree: they have long lobbied for such changes, The New York Times reported.
Mobile broadband
The FCC separately announced two moves designed to boost mobile broadband deployments.
It opened a consultation seeking views on whether processes relating to infrastructure planning permission requests can be improved. A key consideration is whether applications should be considered approved if they are “not acted on by state or local governments within a reasonable period of time”.
US laws covering historical site conservation and environmental protection are also included in the consultation, as the FCC seeks to establish “what changes could be made to minimise costs and delays” in deploying mobile broadband infrastructure.
The regulator stated it is seeking to assess whether current rules “impose barriers to entry or are otherwise unreasonable” in the context of deploying mobile broadband services which have the “potential to bring enormous benefits” to the country.
In a separate move, the FCC announced changes to rules covering operators’ access to the federal universal service high-cost program – also known as the Connect America Fund – which is designed to encourage investment in areas where rollout costs are high.
The amended rules mean operators funding projects through the programme can pay the difference between the scheme’s funding and actual deployment costs. Previously, operators lost all access to the subsidies if the average cost per location exceeded company-specific thresholds.
In a statement, the FCC said the changes aim to boost infrastructure deployments in high cost locations while continuing to ensure “efficient use of universal service” funds.
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