|
For Immediate Release: Feb. 6th, 2003 Contact: Bruce Kushnick, 212-777-5418 Links to the Filings are listed below.
for their Ex parte Filings in the Triennial Review.
New York ---Two of the country's small business leaders, the Small Business Administration's Office of Advocacy and NFIB, one of the largest small business associations, have taken strong positions against proposed rules by the FCC that could harm small telecom competitors and small business owners.
"The FCC's plans could cause a second telecom crash by putting thousands of small telecom providers out of business, and this will have a ripple effect on millions of small businesses owners. Teletruth applauds the Small Business Administration's Office of Advocacy and NFIB for protecting the rights of small businesses and we hope that their involvement will make the FCC think long and hard about how its rules could harm small business" states Bruce Kushnick, Chairman of Teletruth.
These independent voices also reinforce Teletruth's recent request that the FCC redo their Triennial Review proceedings because the Agency is in violation of the Telecom Act, the Regulatory Flexibility Act and Executive Order 13272.
Highlights: The Small Business Administration's Office of Advocacy has taken the position that the removal of "UNEs", (i.e.; the available network services used by competitors), will harm the small Competitive Local Exchange Companies (CLECs) who depend on these services today.
They write: "...Advocacy believes that the adoption of a rule that leads to the delisting of UNEs will have a significant economic impact on small CLECs. Removing UNEs from the list of "leasable" equipment changes the basic business model in existence today. Such a change in the operating environment alters the basis for competition in the telecommunications industry."
SBA continues, stating that hundreds of companies will be jeopardized by these changes. "As many of the comments to this docket by small telecommunications providers state, their very existence is predicated on the availability of UNEs. Small business groups have vouched that absent transport and interconnection, their continued operation in the market is not sustainable, and their business model would have to change. With hundreds of CLECs operating on a similar business model, the viability of this small business sector is jeopardized if UNEs were removed from the list. "
In fact, the Office of Advocacy believes that the FCC's current process was not specific enough. "This lack of specificity is not consistent with the Administrative Procedure Act and frustrates the spirit of the RFA, as it is difficult for small businesses to comment meaningfully. We believe that by proceeding this way, the Commission is limiting the ability of small businesses to provide the agency with needed information on the impacts of the rule and possible alternatives that will lessen any impacts."
Because the FCC has not fulfilled its obligations under the Regulatory Flexibility Act, The Office Of Advocacy states that the FCC should revise its Triennial Review procedure and start again.
"While the Commission conducted an Initial Regulatory Flexibility Analysis ("IRFA"), the Commission did not consider the impact of delisting unbundled network elements ("UNEs") on small competitive local exchange carriers ("CLECs"). To comply with the RFA, Advocacy recommends that the Commission publish for comment a revised IRFA with an analysis of what impact that delisting of UNEs would have on small competitive carriers."
Teletruth has independently filed comments that the FCC was in violation of the Regulatory Flexibility Act, and we are calling for the FCC to halt their proceedings and start again.
The NFIB, one of the largest associations representing small businesses, has also questioned the FCC's process, and states that the required analysis is not adequate to analyze the impact on small businesses.
"...the Initial Regulatory Flexibility Analysis does not adequately consider the impact on small businesses. Absent any definitive proposed rules, we are unable to determine if the potential impact of the forthcoming rule on small-business consumers is being considered sufficiently."
NFIB also found that the FCC new rules could limit competition. "The FCC's rulemaking has the potential to limit the benefit of the Telecommunications Act of 1996 by reducing the number of competitors willing to serve small-business users. "
But most importantly, NFIB realizes that losing the small telecom competitors would also harm the millions of small business owners who use these competitive options.
"The FCC's rulemaking has the potential to limit the benefit of the Telecommunications Act of 1996 by reducing the number of competitors willing to serve small-business users."
"We urge the FCC to review all data to ensure that any action taken does not hinder the availability of competition for small businesses needing local telephone services. As price takers, small-business owners do not have the luxury of negotiating rates like many larger firms. Instead, small-business owners must rely upon competition in the market place to hold down prices."
* To read the Office of Advocacy Ex Parte Letter http://www.sba.gov/advo/laws/comments/fcc03_0205.html
* To read the NFIB Ex Parte Letter http://www.teletruth.org/docs/NFIBUnbundling.doc
* To read the Teletruth Ex Parte Letter. http://www.newnetworks.com/triennialfin.htm
* To Read the Pulver.com Letter, with hundreds of signatories. http://www.pulver.com/reports/signers.html
Teletruth is a national customer alliance dealing with broadband and phonebill issues. For more information about teletruth visit |