Analysts remain bullish about the prospects of CenturyLink's planned buy of Level 3 (see 1610280052) despite new criticisms filed at the FCC, this time by Frontier Communications and Public Knowledge. "The odds of the deal closing have to be judged as being quite high," and the limited opposition "only reinforces the point," Nick Del Deo of MoffettNathanson told us Thursday. Chris Antlitz, Technology Business Research analyst, agreed: "There will be some competitive considerations and investment considerations that will need to be reviewed and negotiated, but I still think the merger will ultimately go through with minimal concessions." The FCC is considering a CenturyLink/Level 3 application to transfer licenses; the deal is also being reviewed by DOJ on antitrust grounds, and by state regulators.
The Arizona Corporation Commission approved an order to align Lifeline eligibility requirements with FCC updates to the low-income program. Commissioners cleared the order as part of the consent agenda at their Tuesday meeting. The commission also ordered Arizona eligible telecom carriers to remove Link Up from Arizona tariffs, except for ETCs receiving high-cost support on tribal lands. “All Arizona ETCs are expected to keep current with and to comply with all FCC rules and regulations governing the provision of Lifeline services,” the commission said in the Jan. 25 proposed decision.
The Arizona Corporation Commission approved an order to align Lifeline eligibility requirements with FCC updates to the low-income program. Commissioners cleared the order as part of the consent agenda at their Tuesday meeting. The commission also ordered Arizona eligible telecom carriers to remove Link Up from Arizona tariffs, except for ETCs receiving high-cost support on tribal lands. “All Arizona ETCs are expected to keep current with and to comply with all FCC rules and regulations governing the provision of Lifeline services,” the commission said in the Jan. 25 proposed decision.
FCC Chairman Ajit Pai defended a rollback of Lifeline broadband provider designations amid criticisms from Commissioner Mignon Clyburn, Rep. Frank Pallone, D-N.J., and others (see 1702030070 and 1702060062). "It’s vital that low-income Americans have access to communications services, including broadband Internet, which Lifeline helps to achieve," Pai wrote in a Tuesday blog post, which also reiterated his broader, initial efforts to close the digital divide. He recognized there are questions about why the Wireline Bureau issued a Lifeline broadband provider (LBP) reconsideration order Friday.
FCC Chairman Ajit Pai defended a rollback of Lifeline broadband provider designations amid criticisms from Commissioner Mignon Clyburn, Rep. Frank Pallone, D-N.J., and others (see 1702030070 and 1702060062). "It’s vital that low-income Americans have access to communications services, including broadband Internet, which Lifeline helps to achieve," Pai wrote in a Tuesday blog post, which also reiterated his broader, initial efforts to close the digital divide. He recognized there are questions about why the Wireline Bureau issued a Lifeline broadband provider (LBP) reconsideration order Friday.
FCC bureaus Friday afternoon undid numerous orders and other items (see 1702030058) enacted under former FCC Chairman Tom Wheeler, reversing actions on zero rating, media ownership, video streaming and other matters. Commissioner Mignon Clyburn criticized it as “Take out the trash day” and a “Friday news dump.” The reversed items are all “last minute actions” that weren't supported by a majority of commissioners when they were taken and that “ran contrary to the wishes expressed by the leadership of our congressional oversight committees,” said Chairman Ajit Pai in a statement Friday. "In some cases, Commissioners were given no advance notice of these midnight regulations." The actions also were a subject of our earlier story (see 1701240020).
FCC bureaus Friday afternoon undid numerous orders and other items (see 1702030058) enacted under former FCC Chairman Tom Wheeler, reversing actions on zero rating, media ownership, video streaming and other matters. Commissioner Mignon Clyburn criticized it as “Take out the trash day” and a “Friday news dump.” The reversed items are all “last minute actions” that weren't supported by a majority of commissioners when they were taken and that “ran contrary to the wishes expressed by the leadership of our congressional oversight committees,” said Chairman Ajit Pai in a statement Friday. "In some cases, Commissioners were given no advance notice of these midnight regulations." The actions also were a subject of our earlier story (see 1701240020).
FCC Chairman Ajit Pai said a new broadband deployment advisory committee (BDAC) would seek ways to spur the rollout of high-speed internet access networks and close the digital divide. He said the BDAC would be charged with identifying regulatory barriers to broadband infrastructure investment, and recommending actions to remove or reduce them. The panel also would draft a model code for localities to follow to encourage deployment, he said, announcing its formation in a statement at the commissioners' Tuesday meeting, followed by a news release and a public notice (documents here).
FCC Chairman Ajit Pai said a new broadband deployment advisory committee (BDAC) would seek ways to spur the rollout of high-speed internet access networks and close the digital divide. He said the BDAC would be charged with identifying regulatory barriers to broadband infrastructure investment, and recommending actions to remove or reduce them. The panel also would draft a model code for localities to follow to encourage deployment, he said, announcing its formation in a statement at the commissioners' Tuesday meeting, followed by a news release and a public notice (documents here).
Incompas said CenturyLink's planned buy of Level 3 could undermine competition and lead to higher prices and less fiber deployment to businesses. "Level 3 is a shining example of how competition and interconnection policy bring more innovation and better customers service to market," said Karen Reidy, vice president-regulatory affairs, in a release Tuesday noting Incompas filed comments in the FCC's review proceeding. "While we understand why an incumbent like CenturyLink would desire to acquire such an innovative network, the significant reduction in competitive choice at building locations across CenturyLink’s footprint threatens to saddle business customers with less choice and higher prices." Level 3 is an Incompas member. In its FCC comments, Incompas said eliminating a last-mile facilities-based competitor would "enable the combined company to more easily execute price squeezes to push other retail enterprise business solution providers out of the market," including for multi-location customers partially in CenturyLink's incumbent telco region. "Applicants attempt to gloss over these issues by understating buildings where they have overlaps, while overstating alternative facilities-based options for business data services at these buildings," said the filing in docket 16-403. It said the takeover "may dampen CenturyLink's plans for fiber deployments to buildings lit by Level 3," and applicants made inadequate showings on dark fiber for long-haul transport and on remaining transport providers. "Before approving this transaction, the Commission must ensure that the competitive force Level 3 has provided is not lost," Incompas said. The National Congress of American Indians asked the agency to use the review to address the lack of affordable broadband on tribal lands. "Many Native Americans reside in CenturyLink’s 14-state service territory which is home to the largest land-based, federally recognized tribal lands in the country. This merger risks lessening the incentive CenturyLink has to invest in their networks that serve Tribal lands ... as the merged entity shifts its business model to one focused on enterprise business services," said NCAI's comments. CenturyLink emailed in response: “Our nation’s telecommunications and IT infrastructure must continue to evolve quickly to meet the ever-increasing demands of government, business and consumers. Because we must meet those needs and strengthen America’s telecommunications infrastructure for the future, it is clear that this transaction is in the public interest.” Level 3 didn't comment.