FCC rules against Verizon’s Request for Forbearance

December 5, 2007

in Featured

The Federal Communications Commission today addressed petitions for forbearance filed by the Verizon Telephone Companies, which sought certain forbearance relief in the Boston, New York, Philadelphia, Pittsburgh, Providence and Virginia Beach Metropolitan Statistical Areas, or MSAs.

FCC Statement: The Commission found that the current evidence of competition does not satisfy the section 10 forbearance standard with respect to any of the forbearance Verizon requests.  Accordingly, the Commission denied the requested relief in all six MSAs.

More details of this ruling:

MO&O: Word | Acrobat
News Release (12/4/07): Word | Acrobat
Martin Statement: Word | Acrobat
Copps Statement: Word | Acrobat
Adelstein Statement: Word | Acrobat

XO Communications and COVAD have both released press statements supporting the FCC’s ruling in this:

The following comments are attributable to Heather Burnett Gold, senior vice president - external affairs, at XO Communications.

“XO Communications praises Chairman Martin and each of the Commissioners for a unanimous decision denying Verizon’s petition for forbearance, and thanks Congress for its pro-consumer support of competition throughout this proceeding.”

“Today the FCC delivered a solid victory for competition and for millions of consumers. Strong bipartisan leadership from the House and Senate Commerce Committees, as well as efforts from individual Representatives and Senators, played a vital role - demonstrating the public interest in maintaining a vibrant competitive market that delivers choice, innovation and lower prices to business and residential customers.”

“The FCC made the right decision based on a thorough analysis of the evidence. This action helps ensure that competition will continue to thrive, and that markets where Verizon sought forbearance will not fall under the unchallenged rule of the single provider.”

And the statement from COVAD:

The following quote may be attributed to Charles Hoffman, Covad president and chief executive officer:
“We are very pleased that the FCC has affirmed its longstanding policies in support of facilities-based competition by companies like Covad. This decision continues the regulatory stability that has allowed Covad to invest in new and innovative services for businesses and consumers across the country.” “In particular, Covad commends Chairman Martin and the commissioners for reviewing the facts on the ground and making the right choice. We also recognize the dedicated members of Congress who stood up in favor of competition throughout this process. This decision protects competitive choice, affordable rates, and product innovation for businesses and consumers from Virginia Beach to Boston.”
In addition, the FCC voted unanimously to begin a proceeding to establish rules and procedures to govern the consideration of forbearance petitions going forward. “With many in Congress and at the FCC expressing concerns about the procedural shortcomings of forbearance, I’m pleased that the Commission has taken this
important step to establish rules of the road for future petitions,” noted Hoffman. “I’m hopeful the Commission will move quickly to finalize this rulemaking.”

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