FEDS, STATE PUCs SPLIT OVER CONTROL OF UNE-P REINS

While the overall tone of the National Association of Regulatory and Utility Commissioners last week in Chicago was collegial, it was apparent that state regulators are at odds with their federal counterparts over the future of the unbundled network element platform.

At stake is who will have domain over the most contentious regulatory issues.

“This isn't an election,” said Commissioner Joe Mettner of the Public Service Commission of Wisconsin. “Evidence established the UNE standards that the states administer. They should not be changed unless on [the basis of] evidence.”

Still, noting that competition has evolved in ways regulators did not foresee when the Telecom Act was written, FCC Commissioner Kathleen Abernathy hinted that change was on the way.

“On one hand we have to ensure companies have access to unbundled facilities. On the other, we need to make sure we write rules that preserve the incentive to invest,” she said, echoing a common complaint made by the Bell companies.

When it comes to the future of UNE-P, federal regulators typically determine how and under what circumstances such elements are made available to competitors. However, states have the ability to interpret the details.

Even if the FCC goes as far as eliminating the platform altogether — a possibility analysts dismiss as unlikely — state regulators still hold important trump cards that would help open up the local loop to competition.

“[Section] 271 relief has to come through them,” said Nancy Kaplan, vice president of Adventis. “[Long-distance relief and competition] really are two sides of the same coin.”