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House Commerce Chmn. Tauzin (R-La.) wrote FCC Chmn. Powell June 1...

House Commerce Chmn. Tauzin (R-La.) wrote FCC Chmn. Powell June 11 to urge Commission to use triennial review to correct problems with unbundling rules identified by U.S. Appeals Court, D.C., in recent ruling (CD May 28 p1). “I hope…

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that, in the triennial review, the Commission closely scrutinizes the prices that ILECs are compelled by regulatory fiat to charge subscribers before the Commission determines whether market conditions dictate that competitive local exchange carriers (CLECs) need unbundled access to ILEC facilities,” letter said. Tauzin said FCC shouldn’t apply national rules for unbundled network elements (UNEs). “Uniform, national rules do not accurately reflect the state of competition and the unique economic characteristics of individual markets,” letter said. Unbundling rules also prevent CLECs from investing in their own facilities, it said. “Removing either an ILEC’s or CLEC’s incentive to invest in its own facilities reduces the likelihood that our markets will experience facilities-based competition,” letter said. “Removing both an ILEC’s and a CLEC’s incentive to invest in new facilities virtually eliminates the possibility of achieving true facilities-based competition and increases the likelihood that any competition would be of the ‘wholly artificial’ type feared by the D.C. Circuit.” Tauzin said rules should create incentive to invest, otherwise “I fear that the Commission will be perpetuating a policy that has limited broadband deployment and deprived consumers of the type of meaningful competition that only facilities-based carriers can provide,” letter said.