Proposed BDS Rate Controls Are Anti-Investment, Arbitrary, and Fact-Challenged

On November 17, the FCC plans to vote on new price controls that threaten investment in broadband infrastructure deployments and upgrades. Its proposal to subject certain special access or so-called business data services (BDS) to new rate controls will divert financial resources from construction of new facilities. The Commission’s proposal is not supported by evidence.

By proposing to impose a price cap on all TDM-based BDS facilities nationwide rather than conducting local market analyses, the Commission effectively throws away its comprehensive BDS data collection. As importantly, proposed rate controls are also arbitrary and contrary to agency precedent. The proposal should be rejected—or, if unwisely adopted, repealed by a newly-constituted FCC.

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