CenturyLink, Inc. (NYSE: CTL), FairPoint Communications, Inc. (NASDAQ: FRP) and Frontier Communications Corporation (NASDAQ: FTR) commented on the FCC’s proposal to regulate “special access” business data services.
“The FCC’s data shows that its 20-year old deregulatory policy for business data services has been very successful, fostering competitive entry by cable companies and others, network investment, technological advances and much lower prices for capacity. Those hoping to be connected to the digital economy will be best served if the FCC continues this success story, but we are concerned today’s rulemaking proposal will turn back the clock and shut the door on business data investment and competition in much of suburban and rural America.
Regulatory rate reductions for broadband data services in the highest cost areas will prevent or slow competitive growth and make it difficult for current providers to continue with planned upgrades and future investments. Ironically, the main beneficiaries of such rate cuts would be large wireless providers that sold off their rural properties and can well afford to pay the actual cost of network investments that they choose not to make themselves.”