Building, Cable Access Decisions Ties FCC in Knots

Two of the hottest new places for carriers to place broadband gear are on cable TV pipes and the common facilities of multitenant office buildings. And with carriers clamoring for guaranteed access to points where public networks meet customer premises, the U.S. Federal Communications Commission has found itself in the middle of a lobbying frenzy on both fronts.

The battles on both issues became so heated earlier this month that on the very same day, the FCC postponed previously scheduled votes on both issues because of commissioners' pleas for more study time. But the FCC said it would try again as soon as this week to vote.

At the request of Republican Commissioner Harold Furchtgott-Roth, the FCC on Sept. 14 put off a decision whether it should begin regulating building owners' relationships with carriers. And at the request of Democratic Commissioner Gloria Tristani, the FCC put off a notice of inquiry on whether cable networks must be open to all ISPs.

The two issues share remarkable rhetorical similarities. Proponents of a new rule guaranteeing all carriers a nondiscriminatory right to place equipment in office buildings call the issue "building open access." But opponents call it "forced access." Those favoring the rule are mostly competitive local exchange carriers (CLEC), while the opponents are mostly real estate owners and some telecom ventures they've recently established.

Likewise, proponents of an initiative to establish regulations guaranteeing that all carriers can sell their services over cable networks call their position "cable open access," while opponents say that's another example of "forced access." The proponents in this case are mostly independent ISPs, while opponents are cable operators led by AT&T Corp.

The building issue dropped off the FCC's agenda after Furchtgott-Roth indicated he needed more time to study whether the FCC has legal authority to act. For two years, commercial real estate owners have bitterly complained that any attempt by the FCC to force them to provide space to all carriers would violate constitutional restrictions against seizure of private property.

Despite the postponement, FCC Chairman William Kennard made it clear in a brief remark that CLECs pressing for the rule - led by fixed-wireless providers such as WinStar Communications Inc. and Teligent Inc. who want rooftop and riser rights - had made progress in getting their way at the FCC. For businesses and consumers who occupy multitenant buildings, "I think it's important to provide real choice in telecommunications providers," Kennard said.

A source close to recent negotiations told Network World the FCC is pondering something of a legal compromise. Instead of ordering building owners to act, it would instead direct all carriers - including the new real estate-owned carriers such as BroadBand Office Inc. and Allied Riser - to deal only with buildings that have adopted a nondiscriminatory policy.

The source, who asked not to be identified, noted that this "indirect regulation" approach would be similar to the FCC's policy on foreign phone calls. Two years ago, the FCC beat back a lawsuit from foreign carriers who complained the FCC exceeded its authority by establishing low benchmarks for the fees foreign carriers charge U.S. carriers for completing calls. The FCC successfully argued it was not trying to regulate foreign carriers but was only directing U.S. carriers to sign international contracts with acceptably low rates.

The cable access issue was not due for a final vote on a new FCC policy, but rather a court-directed Notice of Inquiry as to whether cable networks should be regulated like telephone networks with interconnection guarantees. Kennard made no statement indicating a change in his past position that AT&T and other cable operators should be left alone to upgrade their networks without guaranteeing other carriers access.

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