FCC Investigating AT&T, Verizon For Unfair Business Practices The FCC has announced (pdf) that the agency is investigating AT&T, Verizon, CenturyLink and Frontier for the companies' efforts to corner the broadband business market. According to the FCC announcement, these companies have used unfair business practices and absurdly strict contracts to corner these markets, ultimately hurting competition, and by proxy, consumers.

The investigation comes after years of complaints from companies like T-Mobile, Sprint, Level 3 and XO Communications. Criticism has been particularly loud on the "special access" front, where companies like AT&T and Verizon possess a stranglehold over the backhaul bandwidth used to feed wireless towers. This control over special access connectivity has long limited the competitive potential of AT&T and Verizon competitors like T-Mobile and Sprint, who still need to purchase backhaul bandwidth from these companies. "Competitive LECs allege that incumbent LEC business data services tariff pricing plans incorporate a complicated web of all-or-nothing bundling, loyalty and term commitments, complex enforcing penalties, circuit migration rules and other provisions," notes the FCC. "They assert that the effect is to lock up substantial proportions of carrier and end-user demand, which locks out competition for such demand and consequently harms both competition and innovation." Our press inbox was of course flooded with comments from smaller companies like Windstream and Sprint praising the investigation, as well as a comment from the US Telecom association (of which AT&T and Verizon are members) effectively accusing the FCC of being old fashioned. "Although the FCC says that it wants to be a data-driven agency, promote facilities-based competition, and incent broadband investment, it just can’t seem to get beyond its telephone-era mindset when it comes to regulating 20th century legacy services," complains the investigated telcos. "Although the FCC says that it wants to be a data-driven agency, promote facilities-based competition, and incent broadband investment, it just can’t seem to get beyond its telephone-era mindset when it comes to regulating 20th century legacy services," complains the investigated telcos.







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Most recommended from 41 comments



rebus9

join:2002-03-26

Tampa Bay 23 recommendations rebus9 Member It's about time Let's hope the "new and improved FCC" can persevere long enough to enact meaningful regulations, before some Republican Party "establishment player" gets elected to undo all the good that's been done in the past 1-2 years by Wheeler's FCC. (I'm looking at you, Jeb Bush, and others just like you.)



Disclaimer: I was a card-carrying Republican for decades, until they turned into the despicable corporate lap dog they are today. Now I'm proud to be independent and casting votes according to my conscience, not just party lines.

IowaCowboy

Supermarket Hero

Premium Member

join:2010-10-16

Springfield, MA 7 recommendations IowaCowboy Premium Member Throw Comcast in the mix Throw Comcast into the investigation as well. They're anti consumer with caps (in some markets) and defacto forced bundling (Internet basically priced the same with or without TV).

bluefox8

join:2014-08-20 7 recommendations bluefox8 Member Good for FCC



Before someone says "but LTE is broadband". Haha right, for what practical use? Try watching video on it and see how quickly you end up in bankruptcy.



If we had true competition, like the dialup ISP days, maybe the market could regulate itself against abuses. But as it currently stands, the market doesn't regulate itself. Customers are pretty dissatisfied but have no choice. Here's the list of most loved and hated companies in America (2015):

»www.bloomberg.com/news/a ··· ompanies It's about time. Don't mind businesses generating profits for themselves and their shareholders, but the current big companies end up going to extremes and abuse their customers. We as customers don't really have a choice of real competition. I live in a major metropolitan area and my 'choice' of broadband is between Verizon and Comcast. I'm considered 'lucky' because living in smaller towns you're pretty much at the mercy of one or none. Is this the pathetic state of affairs we want to keep living in?Before someone says "but LTE is broadband". Haha right, for what practical use? Try watching video on it and see how quickly you end up in bankruptcy.If we had true competition, like the dialup ISP days, maybe the market could regulate itself against abuses. But as it currently stands, the market doesn't regulate itself. Customers are pretty dissatisfied but have no choice. Here's the list of most loved and hated companies in America (2015):