February 2003
Timing, Outcome of FCC Vote on UNEs Uncertain
TR Daily had reported earlier this month that FCC sources disputed the Wall Street Journal article published January 6th suggesting the Commission was circulating a draft order regarding its unbundled network element platform (UNE-P). TR says its sources disputed that there was a draft in circulation or that Chairman Powell has settled on a proposal that would mandate a two-year phase out of UNE-P. Stock prices of the Bell operating companies had soared on the news.
There were also reports, this week, that the FCC may push a decision of the UNE triennial review proceeding past February 20, the date that the U.S. District Court's extended stay of the FCC's decision to discard the UNE rules is set to expire. In fact, a group of 20 house members have written a letter to the FCC asking for a delay in the final decisions on the UNE Triennial Review proceeding in order to allow Congress a chance to consider the impact of the pending proposals on consumers and on competition.
If the FCC does make a decision in the proceeding, Chairman Michael Powell may have difficulty getting the three votes needed to remove the current requirement that the regional Bell operating companies lease elements of their networks to competitors at deep discounts, or that they allow combined UNE-P leasing of those elements. The positions three commissioners, Republican Kevin Martin and Democrats Michael Copps and Jonathan Adelstein, are likely to take are unclear. They could vote to give state regulators a stronger role in the matter than Chairman Powell would like.
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