Subject: [NEXTEL-1] The FCC is about to propose new laws that, according to many sources, will harm small telecom businesses.

From: Marcel <[email-masked]>
Date: Wed, 05 Feb 2003 21:50:48 -0500

Teletruth.com 
via Light Reading
February 05, 2003    
------------------------------------------

NEW YORK -- The FCC is about to propose new laws that, according to many sources, will
harm small telecom businesses, including Internet Service Providers (ISPs) and Competitive
Local Exchange Companies (CLECs).  

Teletruth today has filed a Complaint against the FCC, requesting that with FCC redo its
Triennial review, which looks at the prices of service to competitors, (known as "UNE")
because it has violated numerous laws, from the Telecommunications Act of 1996, to the
Regulatory Flexibility Act (as amended), as well as President Bush's Executive Order
13272. 

Teletruth has previously filled comments in 6 broadband proceedings that outline how the
FCC's entire process of data collection and conducting its proceedings are in violation of
the Regulatory Flexibility Act, which is designed to make sure that small business
interests are fully incorporated into any new law. 

To read these filings and more info about the Regulatory Flexibility Act: 

http://www.teletruth.org/FCCbroadband.html 

"The FCC has essentially ignored its legal obligation to give small telecom businesses the
rights they are entitled to under the various laws. In fact, the current proceeding has
taken what was designed to eliminate market barriers to competitors and is being used to
put these small companies out of business" stated Bruce Kushnick, Chairman of Teletruth. 

Violations of the Telecom Act 

Section 257 of the Telecom Act, which mandates the Triennial Review, clearly states that
the FCC is supposed to be "identifying and eliminating... market entry barriers for
entrepreneurs and other small businesses in the provision and ownership of
telecommunications services and information services, or in the provision of parts or
services to providers of telecommunications services and information services." 

According to many sources, including the a recent New York Times article (2/3/03) "the new
rules will favor the regional Bell operating companies and will hurt the small start-up
local carriers " 

It should also be noted that Section 257 also states that the FCC is to favor "diversity
of media voices, vigorous economic competition, technological advancement, and promotion
of the public interest, convenience, and necessity.". 

According to the New York Times "By spring, Mr. Powell also intends to repeal or relax the
ownership rules that have kept the biggest media conglomerates from growing larger." 

"In short, the FCC is ignoring the law as Congress wrote it, and making it be used to put
the companies it was supposed to protect out of business while increasing the monopolies'
control. This means less choice, worse service, a slowdown on innovation and higher
prices" states Kushnick. 

Violations of the Regulatory Flexibility Act 

The FCC, under this act, is required to do an impact study on how its laws will harm small
businesses. However, the FCC has not done anything of the sort for this proceeding and in
its analysis it is using bad data, has ignored numerous groups of small business
competitors, including Internet providers, has failed to properly notify those who would
be impacted for comments, and has failed to come up with any alternatives. In short,
Teletruth believes that there are multiple violation of the law. 

In the case of bad data, the FCC is quoting materials from 1992, "The U.S. Bureau of the
Census ("Census Bureau") reports that, at the end of 1992, there were 3,497 firms engaged
in providing telephone services, as defined therein, for at least one year". In another
place, the FCC states that "We do not have data specifying the number of these carriers
that are not independently owned and operated, or have more than 1,500 employees, and thus
are unable at this time to estimate with greater precision the number of CAPs that would
qualify as small business concerns under the SBA's definition." Notice that the
abbreviation "CAPS" for Competitive Access Providers, has not been in use for over 5
years. 

The Triennial Review documents also leaves out the 5000+ United States Internet Service
providers in its analysis. 

"How can the FCC make any kind of rational analysis when they can't even figure out how
many companies are represented?" asks Kushnick. "Teletruth's own "Small Telecom Business
Impact Study" showed that thousands of companies may be put out of business if these laws
go through, affecting millions of Internet customers, not to mention a new drain on the
economy". To read this study, see: 

http://www.newnetworks.com/smallbusinessimpactstudy.html 

The Small Business Administration's Office of Advocacy has found that the FCC's broadband
proceedings could also harm small businesses. To read their analysis see: 

http://www.sba.gov/advo/laws/comments/fcc02_0827.html 

Executive Order 13272. 

According to the Small Business Administration's Office of Advocacy, "On August 14, 2002,
President George W. Bush signed Executive Order 13272 that requires federal agencies to
implement policies protecting small businesses when writing new rules and regulations." 

In conclusion: "Why write laws if they are just going to be ignored by those who have to
implement them?" adds Kushnick. "The current policies of the FCC may lead to another
telecom crash because the agency is taking a position that they don't have to listen to
small businesses. It's time Congress steps in an controls an agency that has decided to
not follow the laws of the land". 

To learn more about Teletruth, please visit: http://www.teletruth.org 

http://www.lightreading.com/document.asp?doc_id=27951&site=lightreading

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