Verizon challenges FCC cable modem ruling in federal court

Verizon Communications has filed a notice of appeal in federal court that challenges the FCC’s declaratory ruling on cable modem service issued last week.

Though the ruling defines cable modem service in the same way the commission defined DSL service in a previous notice of proposed rulemaking (NPRM)--as an information service with a telecommunications component--it also decreed that cable providers would not be subject to the same common carrier obligations that currently burden telecommunications providers.

Specifically, cable providers under the declaratory ruling--which has immediate standing--are not required to unbundle their facilities, nor are they subject to rate regulation or tariff requirements. Telcos providing DSL service are subject to all these provisions.

The FCC left room to reconsider its position by attaching an NPRM to the cable ruling that asks, among other things, whether cable and wireline providers should continue to be treated differently even though they offer similar services. However, Verizon determined it was necessary to file the appeal to “preserve our argument” that the two services should be treated in an identical manner, according to Michael Glover, senior vice president and deputy general counsel for the carrier.

“Since we don’t know what the FCC’s instinct is going to be, we really didn’t have much of a choice,” Glover said. “From a policy standpoint and a business standpoint, we think it’s important that the two services are treated the same in all respects.”

Glover said the way to achieve regulatory parity is to treat DSL like cable modem service, not vice versa.

“Rather than bring cable to the common carrier side of the ledger and subject it to the regulatory requirements that apply to us, what they need to do is the reverse,” he said.

Regardless of the outcome, Glover said that, at the very least, the cable NPRM reflects the commission’s understanding that it needs to find a way to reconcile the rules that govern the various companies that provide high-speed Internet services.

“It’s a positive development.”