ALTS questions Babbio's broadband comments

The Association for Local Telecommunications Services (ALTS) today questioned Verizon Vice Chairman Lawrence Babbio’s comments issued last week that claimed the FCC’s triennial review order meant the RBOC would not have to share its broadband facilities with competitors given the state of intermodal competition in the high-speed data sector.

Verizon said it would expand its mass-market broadband capabilities by about 30% this year by adding 10 million DSL-capable line to the 36 million currently in place. By the end of the year the carrier’s Verizon Online broadband service is expected to be available on 80% of all Verizon lines.

In addition, Verizon said it would place DSL equipment in more than 3000 remote terminals connected to the carrier’s network via fiber-optic cable and in about 1000 additional neighborhood switching centers.

The predicted activity is predicated on the belief that, as a result of the triennial review order, incumbent carriers no longer will be forced to unbundle broadband facilities, since there already is “intense competition” in the marketplace between phone companies, cable companies and satellite service providers, Verizon said.

“If the FCC’s final order as it relates to broadband is written the way it’s been advertised, that will encourage us to speed our deployment of all broadband technologies,” Babbio said.

However, ALTS President John Windhausen today suggested that Verizon and Babbio are taking liberties with interpretation. In a letter to Babbio, Windhausen pointed out that while the FCC said incumbents would no longer be required to unbundle bandwidth for the provisioning of broadband services over hybrid loops, the commission also said competitors currently providing broadband services over high-capacity facilities would continue to receive access to those facilities.

This means Verizon and other qualifying incumbents, primarily the other Bell companies, would be required to share “at least some” of its broadband facilities with competitors, according to Windhausen. For instance, Windhausen believes Verizon must provide TDM signals over hybrid loops even after packet-switching technology is deployed. He asked Babbio to clarify his remarks on the carrier’s Web site – for the benefit of the capital markets, which often are affected by a “tremendous amount of uncertainty and misinformation.”

It's not likely such a clarification is forthcoming. A Verizon spokesman said today the carrier believes the FCC's order "made it clear" that incumbents no longer have to unbundle packet switching on hybrid loops, or unbundle fiber sub-loops. In addition, when an incumbent deploys fiber to the home in an overbuild situation, its obligation is limited to providing a voice-grade channel. Finally, in situations where fiber is deployed in a new build, the incumbent doesn't have to provide any access.

Regarding Windhausen's assertions concerning the grandfathering of competitors currently receiving access to high-capacity facilities, the spokesman said it's too early to determine the incumbents' obligations.

"They did make some suggestions that there would be circumstances where we would have to provide certain facilities, but they were short on details," he said. "We're just going to have to wait to see the order says. No one knows what the details are."

Verizon’s and Babbio’s comments apparently didn’t bother FCC Commissioner Kevin Martin, who has emerged as a CLEC hero for his behind-the-scenes maneuvering that resulted in incumbent switching remaining on the UNE list.

In a statement made last week, which referenced Babbio’s remark, Martin praised Verizon for its renewed commitment to the deployment of “new broadband technologies,” in light of “significant steps” made by the commission to deregulate broadband and make it easier for carriers to invest in new equipment.

“This is the type of commitment we hoped for in completing the triennial proceeding,” Martin said.